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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulatory Approvals of Scheme

After the Tribunal sanctioned the arrangement of Narmada Agro Ltd, it appointed no one to monitor progress. Which statement about the Tribunal's role under section 231 is correct?

Where the Tribunal sanctions a compromise or arrangement under section 230, it has power to supervise its implementation. Its jurisdiction therefore continues after the sanction order, and no creditor request or Registrar role is required for that supervision.

  1. AIt has power to supervise implementation of the compromise or arrangementCorrect
  2. BIts jurisdiction ends once the sanction order is passed
  3. CSupervision can be exercised only by the Registrar of Companies
  4. DSupervision is possible only if the creditors request it in writing

Explanation

Section 231(1)(a) gives the Tribunal power to supervise implementation of the compromise or arrangement it has sanctioned. Its role does not end on sanction, and the section does not make supervision depend on a creditor request or shift it to the Registrar.

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