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CS Professional · Corporate Restructuring, Valuation and Insolvency · Fast Track Mergers

After Alpha Ltd (transferee) files a fast track scheme with the Central Government, the Registrar sends no communication within thirty days. The Central Government considers the scheme prejudicial to creditors' interest. Which course is open to it under section 233?

The Central Government may file an application before the Tribunal within sixty days of receiving the scheme, stating its objections and requesting that the Tribunal consider the scheme under section 232. It has no power to reject the scheme itself, and the Registrar's silence is treated as no objection.

  1. AReject the scheme itself by a final order without recourse to the Tribunal
  2. BFile an application before the Tribunal within sixty days of receipt of the scheme, asking that it be considered under section 232Correct
  3. CAsk the Registrar to wind up the transferor company
  4. DWait indefinitely, as there is no time limit

Explanation

Under section 233(5), if the Central Government thinks the scheme is not in public interest or the interest of creditors, it may file an application before the Tribunal within sixty days of receipt of the scheme requesting consideration under section 232. It cannot itself reject the scheme, and the Registrar's silence is presumed to mean no objection.

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