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CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

An operational creditor, Verma Supplies, files a section 9 application against Kapoor Steels Ltd without proposing any interim resolution professional. The application is admitted. What is the correct course under the Code?

The Adjudicating Authority makes a reference to the Board for a recommendation, and the Board must recommend an insolvency professional, against whom no disciplinary proceedings are pending, within ten days of receiving the reference. The operational creditor and the promoters have no role in nominating.

  1. AThe Adjudicating Authority refers to the Board, which must recommend an insolvency professional within ten days of receiving the referenceCorrect
  2. BThe Adjudicating Authority refers to the Board, which must recommend an insolvency professional within fourteen days
  3. CThe operational creditor must nominate a professional within seven days of admission
  4. DThe corporate debtor's promoters nominate the interim resolution professional

Explanation

For an operational creditor's application with no proposal, the Adjudicating Authority makes a reference to the Board for a recommendation. The Board must recommend a professional with no pending disciplinary proceedings within ten days of receiving the reference. Fourteen days is a distractor drawn from the old appointment period.

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