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Insolvency and Bankruptcy - Law and Practice · Pre-Packaged Insolvency Resolution Process (Elective 7.5)

Section 54D IBC: Time-Limit for Pre-Packaged Insolvency

Updated 11 October 2026 · Fact-checked

Section 54D sets two clocks for a pre-packaged insolvency resolution process (PIRP), both running from the pre-packaged insolvency commencement date. The whole process must finish within 120 days. The resolution professional must submit the CoC-approved plan to the Adjudicating Authority within 90 days. If no plan is approved in 90 days, an application for termination follows.

Understand Time-Limit for Completion (Section 54D)

A pre-packaged insolvency resolution process is meant to be faster than the regular corporate insolvency resolution process. The base resolution plan is largely settled with financial creditors before the case is filed. So the Code gives it a much tighter timetable.

Section 54D has three parts. Sub-section (1) says the process shall be completed within 120 days from the pre-packaged insolvency commencement date. Sub-section (2) says, without prejudice to sub-section (1), that the resolution professional shall submit the plan approved by the committee of creditors to the Adjudicating Authority within 90 days from that same date.

The commencement date is the date the Adjudicating Authority admits the application under section 54C(4)(a). Under section 54C(5), the process commences from that date. Both clocks start there, not from the date of filing and not from the date of the declaration by the debtor.

The two periods work together. The 90 days is an internal deadline for getting the approved plan to the Adjudicating Authority. The remaining days up to 120 are for the Adjudicating Authority's order on the plan. The 120 days is the outer limit for the whole process.

Sub-section (3) deals with failure. If the committee of creditors has not approved a plan within the 90 days, the resolution professional must, on the day after the 90 days expire, file an application for termination. Section 54N(1) then requires the Adjudicating Authority to decide that application within thirty days of the date of application.

Key rules to remember

Outer limit of the process
PIRP to be completed within 120 days from the pre-packaged insolvency commencement date
Section 54D(1). The date of admission of the application starts the clock (section 54C(5)).
Plan submission limit
RP submits CoC-approved plan to the Adjudicating Authority within 90 days from the commencement date
Section 54D(2). The plan goes under section 54K(4) or 54K(12), as the case may be.
Failure to get plan approved
No plan approved by CoC within 90 days → RP files termination application on the day after the 90 days expire
Section 54D(3). Filing is a duty ("shall"), not an option.
Decision on termination application
Adjudicating Authority passes termination order within 30 days of the application
Section 54N(1), for applications under section 54D(3) and the proviso to section 54K(12).
Comparison with other processes
CIRP: 180 days, one extension up to 90 days, absolute cap 330 days | Fast track CIRP: 90 days, one extension up to 45 days | PIRP: 120 days
Sections 12 and 56 as supplied. Section 54D in the text supplied has no extension provision.

How to solve Time-Limit for Completion (Section 54D) questions

Use this method for any question on the time-limit for a pre-packaged process.

  1. 1Identify the start date. Find the date the Adjudicating Authority admitted the application under section 54C(4)(a). That is the pre-packaged insolvency commencement date.
  2. 2Count 90 days from that date. This is the last day for the resolution professional to submit the CoC-approved plan to the Adjudicating Authority under section 54D(2).
  3. 3Count 120 days from the same date. This is the outer limit for completing the process under section 54D(1).
  4. 4Check the facts: has the committee of creditors approved a plan by day 90? If yes, the RP submits it. If no, go to the next step.
  5. 5If no plan is approved, state that the RP must file a termination application on the day after the 90 days expire (section 54D(3)).
  6. 6State what follows: the Adjudicating Authority orders termination within 30 days of the application (section 54N(1)), and the corporate debtor bears the process costs (section 54N(3)), subject to section 54N(4).
  7. 7Conclude with a clear answer, naming the dates or days and the section.

Quickest way: Day 0, 90, 120 shortcut

When to use it: When a case question gives a date and asks whether the RP or the process is within time.

  1. Write the admission date as Day 0.
  2. Mark Day 90 (plan to AA) and Day 120 (process complete).
  3. Compare each event in the facts with these marks.
  4. If the plan was not approved by Day 90, write: termination application on Day 91 under section 54D(3).
  5. Quote the section numbers 54D(1), 54D(2) and 54D(3) in your conclusion.

Common mistakes in Time-Limit for Completion (Section 54D)

  • Counting the 120 days from the date of filing the application.

    Students link the clock to the filing, as in many procedures.

    Fix: Count from the pre-packaged insolvency commencement date, which is the date of admission under section 54C(4)(a) and (5).

  • Treating 90 days as the time for the CoC to approve the plan only, and forgetting it is the time to submit the approved plan to the Adjudicating Authority.

    The text of sub-section (2) is dense and the words "as approved" are missed.

    Fix: Remember that the plan must be approved by the CoC and submitted to the Adjudicating Authority within 90 days.

  • Saying 90 days and 120 days are added to give 210 days.

    Students treat them as two separate stages one after another.

    Fix: Both run from the same date. The 90 days sits inside the 120 days.

  • Writing that the process can be extended like the CIRP, up to 330 days.

    Confusion with section 12 and the regular CIRP.

    Fix: Section 54D as supplied has no extension provision. Do not import section 12 into a pre-pack answer.

  • Saying the RP may choose whether to file for termination when no plan is approved by day 90.

    Students read it as discretionary.

    Fix: Section 54D(3) says the RP "shall" file the application on the day after the period expires.

  • Mixing up the 30-day period in section 54N with the 90-day and 120-day periods.

    Several numbers appear in the same chapter.

    Fix: Keep a three-line list: 90 for plan submission, 120 for completion, 30 for the Adjudicating Authority's termination order.

Worked examples

Example 1

The NCLT admitted the application of Sundaram Textiles Private Limited for a pre-packaged insolvency resolution process on 10 March. By what date must the resolution professional submit the CoC-approved plan, and by what date must the process be completed? Assume 10 March is Day 0 and the year is not a leap year.

Show the solution
  1. The process commences on the date of admission under section 54C(5). So the commencement date is 10 March (Day 0).
  2. Under section 54D(2), the plan must be submitted within 90 days. Days left in March after 10 March: 21. April: 30, giving 51. May: 31, giving 82. Then 8 more days into June gives 90. So Day 90 is 8 June.
  3. Under section 54D(1), the process must be completed within 120 days. From 8 June (Day 90), 30 more days: June has 30 days, so 8 June plus 22 days is 30 June (Day 112), and 8 more days gives 8 July (Day 120).
  4. Check: 21 + 30 + 31 + 30 + 8 = 120. Day 120 is 8 July.

Answer: The RP must submit the approved plan to the NCLT by 8 June, and the process must be completed by 8 July.

Example 2

In a pre-packaged process for Kaveri Engineering Limited, the committee of creditors has not approved any resolution plan by the end of the 90th day from the commencement date. What must the resolution professional do, and what happens next?

Show the solution
  1. Provision: section 54D(2) requires the approved plan to be submitted within 90 days. Section 54D(3) covers the case where no plan is approved in that period.
  2. Facts: no plan has been approved by the CoC within 90 days.
  3. Analysis: sub-section (3) says the RP shall, on the day after the period expires, file an application with the Adjudicating Authority for termination of the process. So the RP must file on Day 91. This is mandatory.
  4. Next stage: under section 54N(1)(b), the Adjudicating Authority shall, within thirty days of the application, by order terminate the process and provide for the manner of continuation of avoidance proceedings under Chapter III and proceedings under sections 66 and 67A, if any.
  5. Costs: under section 54N(3), the corporate debtor bears the process costs, if any. Section 54N(4) applies in the special case where an order under section 54J(2) has been passed, and then liquidation is ordered.

Answer: The RP must file a termination application on the day after the 90 days expire (Day 91). The Adjudicating Authority must pass the termination order within 30 days of that application.

Exam tips

  • Memorise the three numbers 90, 120 and 30, and attach each to its section: 54D(2), 54D(1) and 54N(1).
  • Always state the starting point as the pre-packaged insolvency commencement date, which is the date of admission.
  • In case questions, draw a small timeline with Day 0, Day 90 and Day 120 before writing the answer.
  • Use the structure provision, facts, analysis, conclusion. Quote the word "shall" when describing the RP's duty under section 54D(3).
  • A short comparison with CIRP (180 days) and fast track (90 days) earns credit, but do not apply their extension rules to a pre-pack.

Practice questions from Pre-Packaged Insolvency Resolution Process (Elective 7.5)

Time-Limit for Completion (Section 54D): frequently asked questions

How many days does a pre-packaged insolvency resolution process take under section 54D?

It must be completed within 120 days from the pre-packaged insolvency commencement date. The CoC-approved plan must reach the Adjudicating Authority within 90 days of the same date.

From which date do the 90 and 120 days start?

They start from the pre-packaged insolvency commencement date. Under section 54C(5), this is the date the Adjudicating Authority admits the application.

What happens if the CoC does not approve a plan within 90 days?

The resolution professional must file an application for termination on the day after the 90 days expire. The Adjudicating Authority then passes the order within thirty days of the application under section 54N(1).

Can the 120-day period be extended like the CIRP period?

Section 54D as supplied contains no extension provision. The extension rules in section 12 apply to the regular CIRP, and section 56 to the fast track process, not to section 54D.