Section 25 of IBC : Section 25: Duties Of Resolution Professional
IBC
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Explanation using Example
Imagine a company, XYZ Pvt. Ltd., is facing insolvency and has been brought under the corporate insolvency resolution process (CIRP) as per The Insolvency and Bankruptcy Code, 2016. A resolution professional (RP) is appointed to manage the affairs of XYZ Pvt. Ltd. during this process.
Under Section 25 of the Code, the RP steps in and takes control of all the company's assets. This includes securing the manufacturing plant and office premises, taking over the company's bank accounts, and safeguarding the business records.
The RP then represents XYZ Pvt. Ltd. in a pending lawsuit for a contract breach, ensuring the company's rights are defended. To keep the business afloat, the RP arranges interim finan...
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