Rule 254: Insolvency professional as authorised representative under section 515(3)(a)(ix)
Rule 254 identifies who may appear as "any other person" under section 515(3)(a)(ix) for a company or a limited liability partnership. It is the person appointed by the Adjudicating Authority to act as interim resolution professional, resolution professional or liquidator under the Insolvency and Bankruptcy Code, 2016.
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Rule 254 - Appearance by Authorised Representative in certain cases
For the purposes of section 515(3)(a)(ix), any other person, in respect of a company or a limited liability partnership, shall be the person appointed by the Adjudicating Authority for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and the rules and regulations made thereunder.
Rule breakdown
Who is covered
Applies to a company or a limited liability partnership.
The person is the one appointed by the Adjudicating Authority as interim resolution professional, resolution professional or liquidator, as the case may be.
The appointment must be under the Insolvency and Bankruptcy Code, 2016 and its rules and regulations.
Practical steps
Keep a copy of the Adjudicating Authority order appointing the professional.
Use that order to show authority when appearing before income-tax authorities for the company or LLP.
Key takeaways
Insolvency cases
Covers companies and LLPs under the IBC process.
Three roles
IRP, resolution professional or liquidator.
Appointment order
The appointment by the Adjudicating Authority is the basis.
Practical checklist
- Carry the Adjudicating Authority appointment order to every hearing.
Avoid
- Do not assume a previous director can appear for the company in place of the appointed professional under this rule.
FAQs
Can a resolution professional represent the company in income-tax proceedings?
Rule 254 treats the resolution professional appointed by the Adjudicating Authority as "any other person" under section 515(3)(a)(ix) for the company.
Does Rule 254 cover partnership firms?
It refers only to a company or a limited liability partnership.
Which law governs the appointment?
The Insolvency and Bankruptcy Code, 2016 and the rules and regulations under it.
Glossary
- Adjudicating Authority
- Defined by reference to section 5(1) of the Insolvency and Bankruptcy Code, 2016 (Rule 250(a)).
- Resolution professional
- The professional appointed under the Insolvency and Bankruptcy Code, 2016 to run the resolution process.