Chapter II Corporate Insolvency Resolution Process
Section 19. Personnel to extend co-operation to interim resolution professional. –
(1) The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the interim resolution professional as may be required by him in managing the affairs of the corporate debtor.
(2) Where any personnel of the corporate debtor, its promoter or any other person required to assist or cooperate with the interim resolution professional does not assist or cooperate, the interim resolution professional may make an application to the Adjudicating Authority for necessary directions.
(3) The Adjudicating Authority, on receiving an application under sub-section (2), shall by an order, direct such personnel or other person to comply with the instructions of the resolution professional and to cooperate with him in collection of information and management of the corporate debtor.
CASE LAWS
1. Any interference in the discharge of the duty of the Resolution Professional will result in the initiation of action against CD and it will be presumed that CD is not obeying the order of the court.
2. Sec 19 of the Code imposes an obligation on the personnel and promoters of the CD to extend all assistance and cooperation which the IRP requires in managing the affairs of the CD.