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CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

Sunrise Textiles Pvt Ltd (an MSME corporate debtor) has its application for a pre-packaged insolvency resolution process admitted by the Adjudicating Authority. The resolution professional named in the application has no disciplinary proceeding pending against him. Whom will the Adjudicating Authority appoint as resolution professional, along with the admission order?

The Adjudicating Authority appoints the insolvency professional named in the application, because no disciplinary proceeding is pending against him. The Board's recommendation is needed only when such a proceeding is pending against the named professional.

  1. AThe insolvency professional named in the applicationCorrect
  2. BAn insolvency professional chosen by the financial creditors by majority vote
  3. CAn insolvency professional chosen by the Board in every case
  4. DAn insolvency professional nominated by the promoters after admission

Explanation

Under section 54E(1)(b), the Adjudicating Authority appoints the resolution professional named in the application if no disciplinary proceeding is pending against him. Only when a disciplinary proceeding is pending against the named professional does it act on the Board's recommendation. So the Board-recommendation option is wrong here.

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