The CIRP of Apex Castings Ltd fails and the Adjudicating Authority orders its liquidation in July 2026.…
Section 34(1) now requires the Authority to refer to the Board for recommendation of an insolvency professional and to appoint him as liquidator. Section 34(4) provides that…
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The CIRP of Apex Castings Ltd fails and the Adjudicating Authority orders its liquidation in July 2026. The committee of creditors wants Meera, the resolution professional in the CIRP, to continue as liquidator. Under section 34 of the Insolvency and Bankruptcy Code, 2016 as amended in 2026:
Answer and explanation
Correct answer B
Section 34(1) now requires the Authority to refer to the Board for recommendation of an insolvency professional and to appoint him as liquidator. Section 34(4) provides that the resolution professional of the CIRP "shall not be appointed or replaced as the liquidator" for that corporate debtor, even under section 34A. Before the amendment, the resolution professional ordinarily acted as liquidator.
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