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CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

Arjun, an insolvency professional, argues that because a PPIRP can run up to 120 days, the resolution professional may submit the CoC-approved plan to the Adjudicating Authority on day 110 without breaching Section 54D. Is Arjun correct?

Arjun is wrong. Section 54D(2) requires the resolution professional to submit the approved plan to the Adjudicating Authority within 90 days of the commencement date, in addition to the overall 120-day limit. Submitting on day 110 would breach the 90-day requirement.

  1. AYes, as the 120-day limit is the only time limit in Section 54D
  2. BYes, if the committee of creditors approves by 66% of voting shares
  3. CNo, the plan must be submitted within 90 days of the commencement date, without prejudice to the 120-day limitCorrect
  4. DNo, the plan must be submitted within 30 days of the commencement date

Explanation

Section 54D(2) operates without prejudice to the 120-day limit and requires submission of the approved plan within 90 days. Day 110 would breach this sub-limit. A 66% vote does not extend the period, and 30 days is not the figure in the section.

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