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

Under Section 23(2), the resolution professional in a CIRP of Vardhan Cements Ltd asks what powers and duties he holds in relation to those of the interim resolution professional. Which statement is correct?

The resolution professional exercises the powers and performs the duties vested in the interim resolution professional under the Chapter. Section 23(2) gives him these in addition to conducting the whole CIRP, with no requirement of prior Tribunal approval and no time limit tied to the first CoC meeting.

  1. AHe holds only the management duties and none of the interim resolution professional's duties
  2. BHe exercises the powers and performs the duties vested or conferred on the interim resolution professional under that ChapterCorrect
  3. CHe may exercise the interim resolution professional's powers only with the Adjudicating Authority's prior approval
  4. DHe holds the interim resolution professional's powers only until the first CoC meeting

Explanation

Section 23(2) provides that the resolution professional shall exercise powers and perform duties as are vested or conferred on the interim resolution professional under the Chapter. It carries no condition of Tribunal approval or time limit tied to the first CoC meeting.

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