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

Meridian Components Pvt Ltd is in a pre-packaged insolvency resolution process (PIRP). Its resolution professional (RP) wants to see the company's electronic financial records held with an information utility. Under the Code, what is the RP's position?

The RP may directly access the corporate debtor's electronic records from an information utility holding its financial information. This is a statutory power of the resolution professional in a pre-packaged process, so no committee of creditors vote, Tribunal order or Board consent is needed.

  1. AThe RP may access the electronic records of the corporate debtor from an information utility having its financial informationCorrect
  2. BThe RP needs prior approval of the committee of creditors by 66% vote before accessing any such records
  3. CThe RP may access them only after the Adjudicating Authority passes a specific order on his application
  4. DThe RP may access only the records the Board of Directors chooses to share

Explanation

Among the RP's powers in a PIRP is access to all books of account, records and information with the corporate debtor and to its electronic records from an information utility. No CoC vote or separate Tribunal order is required. The Board cannot filter what the RP sees.

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