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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

After the Adjudicating Authority approves the resolution plan of Kaveri Pumps Ltd, what must the resolution professional do under the Code, and what happens to the section 14 moratorium?

After approval, the section 14 moratorium ceases to have effect, and the resolution professional must forward all records of the corporate insolvency resolution process and the resolution plan to the Insolvency and Bankruptcy Board to be recorded on its database.

  1. AForward all records of the process and the plan to the Board for its database; the moratorium ceases to have effectCorrect
  2. BRetain all records for five years; the moratorium continues until the plan is fully implemented
  3. CForward the records to the Registrar of Companies; the moratorium continues for 90 days
  4. DForward the records to the Board; the moratorium ceases only when the applicant obtains all approvals

Explanation

Under section 31(3), after the approval order the section 14 moratorium ceases to have effect and the resolution professional forwards all records relating to the process and the plan to the Board to be recorded on its database. The other options add periods or conditions not found in the text.

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