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

The Adjudicating Authority admits the pre-pack application of Bhoomi Agro Ltd. The application named an insolvency professional against whom no disciplinary proceeding is pending. What must the Adjudicating Authority do on the pre-packaged insolvency commencement date?

Along with the admission order, the Adjudicating Authority declares a moratorium, appoints the professional named in the application because no disciplinary proceeding is pending, and causes that resolution professional to make a public announcement immediately after appointment, as section 54E(1) provides.

  1. AAdmit the application and wait for the creditors to appoint a professional later
  2. BDeclare a moratorium, appoint the professional named in the application as resolution professional, and cause a public announcement to be made by the resolution professionalCorrect
  3. CAppoint a professional recommended by the Board and defer the moratorium until the plan is approved
  4. DDeclare a moratorium only after the public announcement is completed by the corporate debtor

Explanation

Under section 54E(1), along with the admission order the Adjudicating Authority declares a moratorium, appoints the named professional if no disciplinary proceeding is pending, and causes the resolution professional to make a public announcement immediately after appointment. A Board recommendation applies only where disciplinary proceedings are pending.

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