CS Professional · Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process
Ganga Steels Ltd filed a section 9 application against Betwa Castings Ltd proposing Mr. Rao as interim resolution professional. The application is complete, the invoice was delivered, no payment was made, and no dispute is recorded. However, a disciplinary proceeding is pending against Mr. Rao. Which outcome follows under the Code?
The application is rejected. Section 9(5)(ii)(e) provides that an application is rejected if any disciplinary proceeding is pending against the resolution professional proposed by the operational creditor, even when every other condition for admission is satisfied.
- AThe application is admitted, since all other conditions are met and the proposal is ignored
- BThe application is rejected, because a disciplinary proceeding is pending against the proposed resolution professionalCorrect
- CThe application is admitted only after Betwa Castings consents to Mr. Rao
- DThe application is treated as an application under section 95
Explanation
Section 9(5)(ii)(e) lists a pending disciplinary proceeding against any proposed resolution professional as a ground for rejection. Section 9(5)(i)(e) makes the absence of such proceeding a condition for admission. Satisfying the other conditions does not cure this.
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