Navod Prasannan Emphasises Role of Resolution Professionals in Safeguarding Insolvency Process in Moneycontrol Feature
Navod Prasannan was recently featured in a Moneycontrol article discussing key findings of an IBBI study and the evolving role of resolution professionals in India’s insolvency framework.
Navod Prasannan Featured in Moneycontrol on IBBI Study
Highlighting the critical responsibilities of resolution professionals (RPs), Navod noted the risks associated with a passive approach during the insolvency resolution process.
Risks of a Passive Approach in Insolvency Resolution
As he said:
“If the RP adopts a passive approach, there is a risk that assets may be dissipated, key evidence may be lost, or fraudulent transactions may go unchallenged, ultimately reducing recoveries for creditors. Conversely, an active and vigilant RP helps maintain transparency in the insolvency process and ensures that the resolution plan reflects the true financial condition of the corporate debtor.”
According to Navod, a passive RP exposes the process to several dangers:
- Assets may be dissipated
- Key evidence may be lost
- Fraudulent transactions may go unchallenged
- Recoveries for creditors are ultimately reduced
Conversely, an active and vigilant RP helps maintain transparency and ensures that the resolution plan reflects the true financial condition of the corporate debtor.
Key Takeaways
His remarks bring into focus several essential priorities for strengthening the insolvency resolution process:
- Proactive oversight by resolution professionals
- Enhanced accountability throughout the process
- Vigilance in preserving asset value and ensuring fairness
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