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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Meera Iyer, an insolvency professional registered with an insolvency professional agency, is appointed in a corporate insolvency resolution process of Kaveri Textiles Ltd. Which of the following describes her statutory position under Section 208 of the IBC?

Under Section 208(1), once a corporate insolvency resolution process has been initiated, it is the insolvency professional's function to take the actions necessary in that process. The section also covers fresh start, individual resolution, pre-packaged, bankruptcy and liquidation processes, so the scope is not limited.

  1. AShe must act as necessary in the corporate insolvency resolution process, as it is one of the processes listed for insolvency professionalsCorrect
  2. BShe may act only in liquidation and not in a resolution process
  3. CShe may act only in individual bankruptcy matters
  4. DShe acts only after the pre-packaged process has ended

Explanation

Section 208(1) lists the corporate insolvency resolution process under Chapter II of Part II among the processes where an insolvency professional takes such actions as may be necessary. The other options misstate the scope, since the section covers resolution, fresh start, liquidation and bankruptcy processes.

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