Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

Kaveri Components Pvt Ltd is admitted into PPIRP. The corporate debtor's application names Mr. Iyer as the proposed resolution professional, but a disciplinary proceeding is pending against him. Whom will the Adjudicating Authority appoint as resolution professional?

The Adjudicating Authority appoints a resolution professional based on the recommendation of the Board. Where a disciplinary proceeding is pending against the professional named in the application, section 54E(1)(b) requires this route instead of appointing the named person.

  1. AMr. Iyer, because the applicant has the right to choose and pending proceedings are irrelevant
  2. BA resolution professional chosen by the committee of creditors at its first meeting
  3. CA professional based on the recommendation of the Insolvency and Bankruptcy Board of IndiaCorrect
  4. DThe application will be rejected because the named professional is ineligible

Explanation

Section 54E(1)(b) says the named professional is appointed if no disciplinary proceeding is pending against him. If one is pending, the appointment is based on the Board's recommendation. Rejection of the application is not provided for in this situation.

Did you get it right without looking?

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

Practise Pre-Packaged Insolvency Resolution ProcessFree diagnostic mock

More Pre-Packaged Insolvency Resolution Process questions