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CS Professional · Corporate Restructuring, Valuation and Insolvency · Liquidation on or after Failing of Resolution Plan

Meridian Textiles Ltd, a Surat firm, is ordered into liquidation under section 33 after its CIRP ends without an approved plan. Mr. Rao was the resolution professional throughout and has submitted his written consent in the specified form to the Adjudicating Authority. Who acts as liquidator?

Mr. Rao acts as liquidator. When liquidation is ordered, the resolution professional from the CIRP becomes liquidator once he submits written consent in the specified form, unless the Adjudicating Authority replaces him on a ground listed in the Code.

  1. AMr. Rao, the resolution professional, unless replaced by the Adjudicating AuthorityCorrect
  2. BA person elected by the secured financial creditors at a fresh meeting
  3. CA person nominated by the outgoing board of directors
  4. DThe official liquidator attached to the High Court by default

Explanation

Under section 34(1), on a liquidation order the resolution professional acts as liquidator, subject to submitting written consent, unless replaced under section 34(4). Mr. Rao has filed consent and no replacement ground applies. Creditors or the board have no power to choose the liquidator in this situation.

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