1. The interim administrator or the company administrator, as the case may be, shall be appointed by the Tribunal from a databank maintained by the Central Government or any institute or agency authorised by the Central Government in a manner as may be prescribed consisting of the names of company secretaries, chartered accountants, cost accountants and such other professionals as may, by notification, be specified by the Central Government.
2. The terms and conditions of the appointment of interim and company administrators shall be such as may be ordered by the Tribunal.
3. The Tribunal may direct the company administrator to take over the assets or management of the company and for the purpose of assisting him in the management of the company, the company administrator may, with the approval of the Tribunal, engage the services of suitable expert or experts.
Legal Commentary & Landmark Judgments: Section 259
Section 259 historically provided for the appointment of a Company Administrator from a government databank to prepare a revival scheme; omitted by the Insolvency and Bankruptcy Code, 2016, its administrative framework was replaced by the Resolution Professional mechanism regulated by the IBBI.
In insolvency litigation, ensure that challenges to the actions of a Resolution Professional are channeled through Section 60(5) IBC before the NCLT, or through disciplinary complaints to the IBBI under Section 217 IBC, recognizing that the RP functions under statutory oversight rather than common-law receivership.