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

During the CIRP of Kaveri Steels Ltd, the RP needs external lawyers to appear before the NCLT on a transaction-avoidance matter. Under section 25 of the Code, which statement is correct?

The resolution professional may appoint accountants, legal or other professionals in the manner specified by the Board, as section 25(2)(d) provides. No shareholder resolution or tribunal nomination is required, so the RP can engage counsel for matters such as avoidance applications.

  1. AThe RP may appoint accountants, legal or other professionals in the manner specified by the BoardCorrect
  2. BThe RP can appoint lawyers only after the NCLT specifically names them in its order
  3. CThe RP cannot appoint any professional and must appear personally in every matter
  4. DThe RP may appoint legal professionals only with a resolution of the corporate debtor's shareholders

Explanation

Section 25(2)(d) empowers the RP to appoint accountants, legal or other professionals in the manner specified by the Board. Section 25(2)(j) also lists filing applications for avoidance of transactions as an RP action. Shareholder approval or NCLT naming is not required by the text.

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