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

Anil, a licensed insolvency professional, is appointed in a liquidation of a corporate debtor and in a pre-packaged insolvency resolution process. A junior asks whether the Code recognises his functions in these processes. Which statement is correct?

An insolvency professional's functions cover fresh start, individual insolvency resolution, corporate insolvency resolution, pre-packaged insolvency resolution, individual bankruptcy and liquidation of a corporate debtor firm. So Anil can take necessary actions in both the pre-packaged process and the liquidation.

  1. AHis functions extend only to the corporate insolvency resolution process
  2. BHe may act only in individual bankruptcy and fresh start processes
  3. COnce the process is initiated, it is his function to take necessary actions in the pre-packaged process and in the liquidation of a corporate debtor firm, among othersCorrect
  4. DHe acts in liquidation only, since pre-packaged processes need no professional

Explanation

The Code lists the processes in which an insolvency professional acts: fresh start, individual insolvency resolution, corporate insolvency resolution, pre-packaged insolvency resolution, individual bankruptcy and liquidation of a corporate debtor firm. Both processes in the facts are therefore covered.

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