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

During CIRP of Narmada Steels Ltd, the CoC wants to know whose powers and duties the resolution professional (RP) holds in the CIRP chapter. Which is correct under Section 23(2)?

Section 23(2) says the resolution professional exercises the powers and performs the duties vested or conferred on the interim resolution professional under the Chapter. This covers both powers and duties and does not depend on any resolution of the committee of creditors.

  1. AOnly those expressly listed for the RP, excluding those of the IRP
  2. BThe RP exercises powers and performs duties vested or conferred on the interim resolution professional under that ChapterCorrect
  3. CPowers of the IRP pass to the RP only if the CoC resolves so
  4. DThe RP holds the IRP's duties but not powers

Explanation

Section 23(2) provides that the RP shall exercise powers and perform duties as are vested or conferred on the IRP under the Chapter. It is automatic, covers both powers and duties, and needs no CoC resolution.

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