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

Mr. Khanna is the resolution professional in a CIRP and has just been appointed. The CIRP period is running. Which of these describes his role under Section 23(1)?

Mr. Khanna conducts the entire corporate insolvency resolution process and manages the operations of the corporate debtor throughout the CIRP period. Section 23(1) gives him both roles, so the promoters do not run operations and he need not wait for a plan to be approved.

  1. AHe only advises the board, which continues to run the company
  2. BHe conducts the entire CIRP and manages the operations of the corporate debtor during the CIRP periodCorrect
  3. CHe conducts the CIRP but the promoters manage operations
  4. DHe manages operations only after the committee of creditors approves a plan

Explanation

Section 23(1) states that the resolution professional shall conduct the entire corporate insolvency resolution process and manage the operations of the corporate debtor during the CIRP period. It makes no division of operations to the promoters and does not wait for plan approval.

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