34. (1) Where the Adjudicating Authority passes an order for liquidation
of the corporate debtor under section 33, the resolution professional
appointed for the corporate insolvency resolution process under Chapter II
shall act as the liquidator for the purposes of liquidation unless replaced
by the Adjudicating Authority under sub-section (4).
(2) On the appointment of a liquidator under this section, all powers of the
board of directors, key managerial personnel and the partners of the
corporate debtor, as the case may be, shall cease to have effect and shall
be vested in the liquidator.
(3) The personnel of the corporate debtor shall extend all assistance and
cooperation to the liquidator as may be required by him in managing the
affairs of the corporate debtor and provisions of section 19 shall apply in
relation to voluntary liquidation process as they apply in relation to
liquidation process with the substitution of references to the liquidator
for references to the interim resolution professional.
(4) The Adjudicating Authority shall by order replace the resolution
professional, if-
(a) the resolution plan submitted by the resolution professional under
section 30 was rejected for failure to meet the requirements mentioned in
sub-section (2) of section 30; or
(b) the Board recommends the replacement of a resolution professional to the
Adjudicating Authority for reasons to be recorded in writing.
(5) For the purposes of clause (a) of sub-section (4), the Adjudicating
Authority may direct the Board to propose the name of another insolvency
professional to be appointed as a liquidator.
(6) The Board shall propose the name of another insolvency professional
within ten days of the direction issued by the Adjudicating Authority under
sub-section (5).
(7) The Adjudicating Authority shall, on receipt of the proposal of the
Board for the appointment of an insolvency professional as liquidator, by an
order appoint such insolvency professional as the liquidator.
(8) An insolvency professional proposed to be appointed as a liquidator
shall charge such fee for the conduct of the liquidation proceedings and in
such proportion to the value of the liquidation estate assets, as may be
specified by the Board.
(9) The fees for the conduct of the liquidation proceedings under
sub-section (8) shall be paid to the liquidator from the proceeds of the
liquidation estate under section 53.