Vesting management with resolution professional permits court application where fraudulent conduct or gross mismanagement is alleged. Section 54J permits vesting the management of a corporate debtor in the resolution professional during the pre packaged insolvency process: following a qualifying committee resolution, the resolution professional applies to the Adjudicating Authority, which may order vesting if the debtor's affairs were conducted fraudulently or there was gross mismanagement. From the date of that order until the pre pack period ends, specified Code provisions apply mutatis mutandis to the proceedings.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Vesting management with resolution professional permits court application where fraudulent conduct or gross mismanagement is alleged.
Section 54J permits vesting the management of a corporate debtor in the resolution professional during the pre packaged insolvency process: following a qualifying committee resolution, the resolution professional applies to the Adjudicating Authority, which may order vesting if the debtor's affairs were conducted fraudulently or there was gross mismanagement. From the date of that order until the pre pack period ends, specified Code provisions apply mutatis mutandis to the proceedings.
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