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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

Sunita files a fresh start application through resolution professional CS Mehta. The Adjudicating Authority directs the Board, which finds disciplinary proceedings pending against Mehta. What does the Board do under Section 82?

The Board rejects Mehta's appointment and nominates another resolution professional suitable for the fresh start process. Section 82(2) gives the Board only two choices, confirmation or rejection with nomination, and the Adjudicating Authority then appoints the nominated person by order.

  1. AConfirm Mehta because the debtor chose him
  2. BReject Mehta's appointment and nominate another resolution professional suitable for the fresh start processCorrect
  3. CRefer the matter back to the debtor to choose another professional
  4. DDirect the Adjudicating Authority to dismiss the application

Explanation

Section 82(2) lets the Board either confirm the professional who filed the application or reject the appointment and nominate a suitable resolution professional. Pending disciplinary proceedings are the reason for the confirmation check, so confirming Mehta is wrong. Nothing in the section permits dismissal of the application on this ground.

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