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

After Alpha Pvt Ltd and Beta Pvt Ltd file their approved fast track scheme, the Central Government receives it on 1 March. It forms the opinion that the scheme is not in public interest and wants the Tribunal to examine it under section 232. By when must it file the application before the Tribunal, and what happens if it files none?

The Central Government must file within sixty days of receiving the scheme. If it files no application before the Tribunal, it is deemed to have no objection to the scheme. The thirty-day period in the section applies only to the Registrar and Official Liquidator's objections, not to this application.

  1. AWithin thirty days of receipt; the scheme is deemed rejected if none is filed
  2. BWithin sixty days of receipt; it is deemed that it has no objection to the scheme if none is filedCorrect
  3. CWithin ninety days of receipt; the Registrar must then refer it automatically
  4. DWithin sixty days of receipt; the Tribunal must then confirm the scheme after hearing

Explanation

Section 233(5) gives the Central Government sixty days from receipt of the scheme to apply to the Tribunal. The proviso to 233(6) says that if it does not file an application, it is deemed to have no objection. The thirty-day period applies to the Registrar or Official Liquidator communicating objections.

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