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

Mr. Menon was appointed IRP of Tapti Cements Ltd on the insolvency commencement date. The CoC has not yet decided on the resolution professional. Under Section 16(5), until when does his term as IRP continue?

The IRP's term continues until the resolution professional is appointed under Section 22, as stated in Section 16(5). The earlier fixed limit of thirty days from appointment was substituted in 2018, so no fixed day count applies now.

  1. AFor a fixed thirty days from his appointment
  2. BTill the date of appointment of the resolution professional under Section 22Correct
  3. CFor fourteen days from the insolvency commencement date
  4. DTill the resolution plan is approved by the Adjudicating Authority

Explanation

Section 16(5), as amended in 2018, says the IRP's term continues till the date of appointment of the resolution professional under Section 22. The fixed thirty-day limit was the earlier text and was substituted.

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