Skip to content

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

The CoC of Deccan Polymers Ltd resolves under section 54-O to start CIRP, and the Adjudicating Authority passes an order terminating the PIRP and initiating CIRP. The resolution professional gives written consent. Which statement is correct?

The consenting resolution professional is appointed interim resolution professional, the order is deemed an admission under section 7, CIRP begins from the date of that order, and PIRP costs are included in the CIRP costs. A Board reference is needed only if the professional fails to consent.

  1. AThe resolution professional becomes interim resolution professional, the order is deemed an admission under section 7, CIRP commences from the order date, and PIRP costs form part of CIRP costsCorrect
  2. BThe Adjudicating Authority must refer the matter to the Board for a fresh interim resolution professional even though consent was given
  3. CCIRP is deemed to commence from the original pre-packaged insolvency commencement date
  4. DPIRP costs are written off and are not counted as insolvency resolution process costs

Explanation

Section 54-O(2) appoints the consenting RP as IRP and includes PIRP costs in CIRP costs; 54-O(4) deems the order an admission under section 7 and says CIRP commences from the date of that order. A Board reference arises only if consent is not given. The PIRP period is counted only for avoidable-transaction look-back, not as the CIRP start.

Did you get it right without looking?

One question tells you little. A timed set on Application for Corporate Insolvency Resolution Process shows your real accuracy, how long you take and where you lose marks.

Practise Application for Corporate Insolvency Resolution ProcessFree diagnostic mock

More Application for Corporate Insolvency Resolution Process questions