Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Pre-Packaged Insolvency Resolution Process (Elective 7.5)

In a PIRP, the RP appoints an accountant and a legal adviser for the work. His fees and expenses for the period before the committee of creditors was constituted are treated how under the Code?

They are subject to ratification by the committee of creditors. The Code lets the committee impose limits and conditions on the RP's fees and expenses, and amounts incurred before the committee was constituted must be ratified by it. They are not final and are not fixed by the Tribunal.

  1. AThey are final and not open to review by the CoC
  2. BThey are subject to ratification by the committee of creditorsCorrect
  3. CThey are fixed by the Adjudicating Authority at the end of the process
  4. DThey are borne by the promoters personally, outside the process

Explanation

The RP's fees and expenses are determined as specified, the CoC may impose limits and conditions, and those for the period before the CoC's constitution are subject to its ratification. The Code does not make them final or fix them by Tribunal order.

Did you get it right without looking?

One question tells you little. A timed set on Pre-Packaged Insolvency Resolution Process (Elective 7.5) shows your real accuracy, how long you take and where you lose marks.

Practise Pre-Packaged Insolvency Resolution Process (Elective 7.5)Free diagnostic mock

More Pre-Packaged Insolvency Resolution Process (Elective 7.5) questions