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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

Mr. Bose is resolution professional of Godavari Foods Pvt Ltd in a pre-packaged insolvency resolution process (PPIRP). A colleague says his duties are identical to the regular CIRP RP under Section 23. Which duty is specifically listed for a PPIRP RP in Section 54F(2)?

In a pre-packaged process the resolution professional must confirm the list of claims submitted by the corporate debtor under section 54G and inform creditors of their claims as confirmed. He monitors the debtor's management rather than taking it over, which differs from the regular CIRP role.

  1. AConfirm the list of claims submitted by the corporate debtor under section 54G and inform creditors of the claims as confirmedCorrect
  2. BInvite claims by public announcement after admission
  3. CManage the corporate debtor as a going concern with the board suspended
  4. DAppoint the interim resolution professional's successor

Explanation

Section 54F(2)(a) and (b) require the RP to confirm the list of claims submitted by the corporate debtor and inform creditors of their claims as confirmed. The debtor submits the list, so a public call for claims is not the listed duty. The PPIRP RP also monitors management of the debtor's affairs rather than managing it himself.

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