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CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy for Individuals and Partnership Firms

Priya Menon, an insolvency professional, is engaged in an individual bankruptcy process under Chapter IV of Part III. Which statement correctly describes her function and obligations under section 208?

Priya must take necessary actions in the individual bankruptcy process, act with reasonable care and diligence, follow her agency's bye-laws, and submit copies of records of every proceeding before the Adjudicating Authority to both the Board and her insolvency professional agency, as section 208 provides.

  1. AShe need not follow agency bye-laws once the Adjudicating Authority has appointed her
  2. BShe must take such actions as may be necessary in the bankruptcy process, with reasonable care and diligence, and submit copies of records of every proceeding before the Adjudicating Authority to the Board and her agencyCorrect
  3. CHer functions cover only corporate insolvency and not individual bankruptcy
  4. DShe must submit records only to the Adjudicating Authority

Explanation

Section 208(1)(d) covers the individual bankruptcy process under Chapter IV of Part III as an insolvency professional function. Section 208(2) requires reasonable care and diligence, compliance with agency bye-laws, and submission of copies of records of every proceeding before the Adjudicating Authority to the Board and the agency.

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