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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

In Arjun Components Ltd, the CoC resolved to replace the IRP with Ms. Iyer, and the Adjudicating Authority forwarded her name to the Board on 1 June. The Board did not confirm her name by 15 June, and no confirmation has since arrived. What is the position under Section 22(5)?

Since the Board did not confirm within ten days of receiving the name, the Adjudicating Authority shall by order direct the IRP to continue functioning as RP until the Board confirms the proposed professional's appointment. There is no deemed appointment of Ms. Iyer and no fresh CoC vote is required.

  1. AMs. Iyer is deemed appointed because the Board did not object within ten days
  2. BThe CoC must restart the process by voting afresh with 66% of the voting share
  3. CThe Adjudicating Authority shall direct the IRP to continue as RP until the Board confirms the proposed professionalCorrect
  4. DThe Adjudicating Authority must itself appoint any available insolvency professional as RP

Explanation

Section 22(5) applies where the Board does not confirm within ten days of receiving the name; 1 June to 15 June exceeds ten days. The Adjudicating Authority then directs the IRP to continue as RP until the Board confirms the appointment. There is no deemed appointment, and no fresh vote is required.

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