Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

In a pre-packaged insolvency resolution process, the resolution professional of Meera Foods Pvt Ltd incurred expenses before the committee of creditors was constituted. How does Section 54F(6) treat the fees and expenses for that earlier period?

They are subject to ratification by the committee of creditors. Under the second proviso to Section 54F(6), fees and expenses for the period before the committee was constituted must be ratified by it, and the committee can also set limits and conditions.

  1. AThey are automatically final and need no approval
  2. BThey are subject to ratification by the committee of creditorsCorrect
  3. CThey are fixed by the corporate debtor's Board
  4. DThey are payable only after the Adjudicating Authority approves a resolution plan

Explanation

The second proviso to Section 54F(6) says fees and expenses for the period before the committee of creditors was constituted are subject to ratification by it. The first proviso also allows the committee to impose limits and conditions, so automatic finality and Board fixing are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Role, Functions and Duties of IP, IRP and RP shows your real accuracy, how long you take and where you lose marks.

Practise Role, Functions and Duties of IP, IRP and RPFree diagnostic mock

More Role, Functions and Duties of IP, IRP and RP questions