Fate of several insolvency cases, including EPC Constructions (earlier knows as Essar Projects), Videocon Industries and Metenere hang in balance. This is because the National Company Law Appellate Tribunal (NCLAT) had ordered that a former bank official cannot be appointed as a resolution professional (RP) in a company facing bankruptcy.
State Bank of India (SBI), which had proposed the names of its former officials as RPs in several cases, has the option to move Supreme Court to appeal against the NCLAT order, say lawyers.
Lawyers said the bankruptcy process will be impacted as the RPs of these companies were earlier bank officials who took over these positions after their retirement. This was a conflict of interest, felt several companies, moving courts.
