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

The CoC of Yamuna Infra Ltd replaces the IRP, Mr. Shah, with Ms. Dutta by the requisite majority and files an application before the Adjudicating Authority with her written consent. The name is forwarded to the Board, which does not confirm it within ten days of receipt. What is the consequence under Section 22?

Under Section 22(5), if the Board fails to confirm the proposed name within ten days of receipt, the Adjudicating Authority directs the IRP to continue as resolution professional until the Board confirms the proposed professional. There is no deemed confirmation and the CIRP does not terminate.

  1. AThe Adjudicating Authority must treat Ms. Dutta as deemed confirmed and appoint her
  2. BThe Adjudicating Authority by order directs Mr. Shah to continue as RP until the Board confirms the appointment of the proposed professionalCorrect
  3. CThe CIRP terminates and the CoC must be reconstituted
  4. DThe CoC must immediately vote again and appoint a different professional

Explanation

Section 22(5) provides that if the Board does not confirm the proposed name within ten days of receipt, the Adjudicating Authority shall by order direct the IRP to continue functioning as RP until the Board confirms the proposed appointment. There is no deemed confirmation, and the process does not lapse.

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