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CS Professional · Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

Ganga Polymers Ltd files a section 10 application proposing CA Rohit Menon as interim resolution professional. The application is otherwise complete, but a disciplinary proceeding is pending against Mr Menon. What is the correct position?

The Adjudicating Authority can reject the application. Under section 10(4), admission requires that no disciplinary proceeding be pending against the proposed resolution professional, and pendency of such a proceeding is a stated ground for rejection, subject to the notice to rectify defects.

  1. AThe Adjudicating Authority must admit the application and replace him later
  2. BThe Adjudicating Authority may reject the application, as a pending disciplinary proceeding against the proposed professional is a ground for rejectionCorrect
  3. CThe application is deemed admitted after fourteen days
  4. DThe Adjudicating Authority must wait until the disciplinary proceeding ends

Explanation

Section 10(4)(b) permits rejection where the application is incomplete or any disciplinary proceeding is pending against the proposed resolution professional. Admission under clause (a) requires that no such proceeding be pending. Hence admission is not available, and the other options have no basis in the text.

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