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CS Professional · Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process

Rohan Textiles filed a Section 9 application proposing Mr. Iyer as interim resolution professional. On the date of the Adjudicating Authority's decision, all other conditions were met, but a disciplinary proceeding was pending against Mr. Iyer. What is the correct consequence, and when would CIRP commence if the application were later admitted?

The application is liable to be rejected because a disciplinary proceeding is pending against the proposed professional, under Section 9(5)(ii)(e). If an application is admitted, Section 9(6) says CIRP commences from the date of admission, not from the notice or filing date.

  1. AThe application must be admitted, and the disciplinary proceeding is ignored
  2. BThe application is liable to be rejected under Section 9(5)(ii)(e); had it been admitted, CIRP would commence from the date of admissionCorrect
  3. CThe application must be admitted, with CIRP commencing from the date of the demand notice
  4. DThe application is held in abeyance until the proceeding ends, and CIRP commences from the date of filing

Explanation

Section 9(5)(i)(e) requires no pending disciplinary proceeding against the proposed professional, and Section 9(5)(ii)(e) makes a pending one a ground for rejection. Under Section 9(6), CIRP commences from the date of admission, not the notice date or filing date.

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