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CS Professional · Corporate Restructuring, Valuation and Insolvency · Liquidation on or after Failing of Resolution Plan

Zenith Forgings Ltd's resolution plan was never approved, and the Adjudicating Authority passed a liquidation order under section 33. Ms. Rao had acted as the resolution professional and has submitted her written consent in the specified form. Who acts as the liquidator?

The resolution professional, Ms. Rao, acts as liquidator. Section 34(1) makes the resolution professional the liquidator once liquidation is ordered, provided written consent is submitted in the specified form, unless the Adjudicating Authority replaces her on a ground listed in section 34(4).

  1. AMs. Rao, the resolution professional, unless she is replaced by the Adjudicating AuthorityCorrect
  2. BAn insolvency professional chosen by a vote of the committee of creditors
  3. CThe former managing director of Zenith Forgings Ltd
  4. DAn officer of the Registrar of Companies nominated for the purpose

Explanation

Under section 34(1), on a liquidation order the resolution professional acts as liquidator, subject to written consent in the specified form, unless replaced under section 34(4). Ms. Rao has consented and no ground for replacement is stated. The creditors' vote option is wrong because the Code provides no such selection at this stage.

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