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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

A trainee is asked who administers the Insolvency and Bankruptcy Fund and how that person is chosen. Which answer is correct under Section 224?

The Central Government appoints the administrator by notification, and the administrator manages the Fund in the manner prescribed. Neither the Board nor the Adjudicating Authority nor the professional agencies appoint the administrator under Section 224(4).

  1. AThe Board appoints an administrator by a resolution of its members
  2. BThe Adjudicating Authority appoints an administrator for each proceeding
  3. CThe Central Government appoints an administrator by notification, who administers the Fund as prescribedCorrect
  4. DThe insolvency professional agencies jointly administer the Fund

Explanation

Section 224(4) states that the Central Government shall, by notification, appoint an administrator to administer the Fund in the prescribed manner. The Board and the Adjudicating Authority have no such role in appointing the administrator.

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