RPs Declared 'Public Servants': High Court Ruling Boosts Accountability In IBC

Introduction

The Insolvency and Bankruptcy Code (IBC) has transformed India's corporate debt resolution framework, placing Resolution Professionals (RPs) at the centre of the process. Entrusted with managing distressed companies, collating claims, and safeguarding assets, their role directly impacts creditors, debtors, and the broader economy. The key issue has been whether Resolution Professionals qualify as "public servants" under the Prevention of Corruption Act, 1988, thereby bringing them within the ambit of its stringent anti-corruption framework.

In a judgment delivered by the Madras High Court in Anil Kumar Ojha v. The State & Others¹ the Court held that Resolution Professionals, being appointed by the National Company Law Tribunal (NCLT) to perform functions connected with the administration of justice, fall within the definition of "public servants." This ruling not only resolves conflicting High Court views but also carries far reaching implications