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CS Professional · Drafting, Pleadings and Appearances · Appearance before other Regulatory and Quasi-judicial Authorities

During CIRP of Sunrise Steels Ltd, a supplier files a suit against the company in a civil court. The resolution professional, Ms. Iyer, wants to defend it. Which Section 25 provision empowers her to do so?

Section 25(2)(b) lets the resolution professional represent and act for the corporate debtor with third parties and exercise rights for its benefit in judicial, quasi-judicial or arbitration proceedings. So she can defend the civil suit herself without needing separate ratification.

  1. AShe may represent and act on behalf of the corporate debtor with third parties and exercise rights for its benefit in judicial, quasi-judicial or arbitration proceedingsCorrect
  2. BShe may do so only after the Adjudicating Authority ratifies each appearance
  3. CShe must leave the defence to the suspended board because the RP only maintains the list of claims
  4. DShe may appear only in arbitration proceedings, not before courts

Explanation

Section 25(2)(b) directs the RP to represent and act on behalf of the corporate debtor with third parties and exercise rights in judicial, quasi-judicial or arbitration proceedings. The text contains no requirement of ratification by the Adjudicating Authority and no limitation to arbitration.

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