Resolution professional statutory duty investigating preferential transactions hampered non disclosure timely information

The Insolvency and Bankruptcy Code, 2016 imposes a statutory duty on the resolution professional to preserve corporate assets and examine past transactions for potential avoidance under Sections 43, 45, 47, and 66. However, where former management or third parties deliberately suppress relevant assignment agreements or contracts until the final stages of the corporate insolvency resolution process, the resolution professional is effectively prevented from conducting a proper forensic audit or filing timely avoidance applications. Such procedural obstacles or non-disclosures do not empower the Adjudicating Authority to bypass statutory procedures and summarily declare transactions void without adhering to formal application processes and evidentiary standards. (Gloster Limited v. Gloster Cables Limited & Ors. | 2026 INSC 81)