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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

Sagar Infra Ltd's CIRP period has expired but no order on the resolution plan has yet been passed by the Adjudicating Authority. Who manages the operations of the corporate debtor in this interval under Section 23?

The resolution professional continues to manage the corporate debtor's operations after the CIRP period expires, until the Adjudicating Authority passes an order approving the resolution plan or appointing a liquidator. Expiry of the period neither revives the board nor stops operations.

  1. AThe resolution professional, until an order approving the plan under section 31(1) or appointing a liquidator under section 34 is passedCorrect
  2. BThe suspended board of directors, from the day the period expires
  3. CThe promoters, until the committee of creditors meets again
  4. DNo one; operations stop automatically on expiry

Explanation

The proviso to Section 23(1) says the resolution professional continues to manage operations after expiry of the CIRP period until the Adjudicating Authority passes an order approving a plan or appointing a liquidator. The board is not revived on expiry. Operations do not stop.

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