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

Arvind Kulkarni's name has been approved under the relevant provision of the Code as the proposed resolution professional for a pre-packaged insolvency resolution process of Godavari Pharma Ltd, but the process has not yet been initiated. Which statement is correct?

Once his name as proposed resolution professional is approved, he must take such actions as are necessary to perform his functions and duties before the pre-packaged insolvency resolution process starts. Section 208(1A) creates this pre-initiation function, so waiting until initiation is incorrect.

  1. AHe has no function until the process is initiated, as Section 208 applies only after initiation
  2. BIt is his function to take such actions as are necessary to perform his functions and duties prior to initiation of the pre-packaged processCorrect
  3. CHis pre-initiation functions are to be performed by the IPA instead
  4. DHe may act only as liquidator until the pre-packaged process begins

Explanation

Section 208(1A) provides that where the name of the insolvency professional proposed as resolution professional is approved under section 54A(2)(e), it is his function to take necessary actions to perform his functions and duties before the pre-packaged process is initiated. So the claim that he has no function before initiation is wrong.

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