CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

Following a termination order under Section 54N(1) for Mehta Engineering Pvt Ltd, no order under Section 54J(2) had been passed earlier. Who bears the PIRP costs, if any, and what happens to pending avoidance-transaction proceedings?

The corporate debtor bears the PIRP costs, and the Adjudicating Authority's termination order must provide for the manner in which avoidance-transaction and related proceedings continue. They do not lapse automatically under Section 54N.

1. AThe financial creditors bear the costs; the proceedings automatically lapse
2. BThe corporate debtor bears the costs; the Adjudicating Authority provides for the manner of continuation of the proceedingsCorrect
3. CThe resolution professional bears the costs; the proceedings continue unchanged
4. DThe corporate debtor bears the costs; the proceedings lapse