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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

The CoC of Ganga Polymers Ltd resolves by the required majority to continue the IRP, Ms. Iyer, as resolution professional. Which step does Section 22(3)(a) prescribe?

Where the CoC continues the IRP as resolution professional, Section 22(3)(a) requires it to communicate the decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified form. The application and Board confirmation process applies only to replacement.

  1. AThe CoC files an application before the Adjudicating Authority for her appointment and awaits Board confirmation
  2. BThe CoC communicates its decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to her written consent in the specified formCorrect
  3. CThe CoC informs only the Insolvency and Bankruptcy Board of India, which then issues the appointment
  4. DThe CoC needs no communication as the IRP automatically becomes RP

Explanation

Under Section 22(3)(a), when the IRP is to continue, the CoC communicates its decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified form. The application and Board confirmation route applies only to replacement under clause (b).

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