# In the matter of NABARD vs. M Karunakar Reddy

> NCLT judgment dated 2023-12-11. Citation: TCN-2023-NCLT-00308. The case involves an application under the Insolvency and Bankruptcy Code (IBC). The Insolvency…

- **Court:** NCLT
- **Order date:** 11 Dec 2023
- **Citation:** TCN-2023-NCLT-00308
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nabard-vs-m-karunakar-reddy-3a032610

## Summary

### Background

The case involves an application under the Insolvency and Bankruptcy Code (IBC). The Insolvency Professional brought a matter to the court's attention. Initially, the Tribunal appointed Smt. Padma Priya from the IBBI panel as the Interim Resolution Professional (IRP).

## Facts

The National Bank for Agriculture and Rural Development (NABARD) filed a case against Smt. M Karunakar Reddy under the Insolvency and Bankruptcy Code (IBC). Initially, Smt. Padma Priya was appointed as the Interim Resolution Professional (IRP) by the Tribunal. However, it was later discovered that the financial creditor intended to appoint Shri Chakilam Nagarjuna Rao, and the initial representation was made inadvertently. Smt. Padma Priya had not filed her consent letter. Shri Chakilam Nagarjuna Rao's name appears in the IBBI database. The petitioner is directed to pay Rs. 50,000 towards initial expenses of the Resolution Professional.

## Issues and analysis

### Issue 1: Whether the Tribunal can revoke the appointment of an Interim Resolution Professional (IRP) and …

**Ratio:** A Tribunal has the power to rectify errors and inadvertent appointments to ensure the

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**Reasoning:** The court reasoned that the initial appointment of Smt. Padma Priya was based on an

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**Interpretation:** This implies that Tribunals have the authority to correct mistakes in

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**Application:** In this case, the Tribunal applied this principle by revoking the appointment

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** National Bank for…
- **Respondents:** M Karunakar…

## Timeline

- **2023-12-11 — Hearing…**: Hearing held on…
- **2024-01-10 — Adjournmen…**: Matter stands adjourned…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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