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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

Bharat Alloys Pvt Ltd's resolution plan was approved by the Adjudicating Authority on 10 March. The resolution applicant needs a licence from a sectoral regulator whose law specifies no period for approval. Within what period must the applicant obtain necessary approvals under any law, as provided in the Code?

The resolution applicant must obtain the necessary approvals under any law within one year from the date the Adjudicating Authority approves the plan, or within the period provided in that law, whichever is later. The period does not start from the creditors' committee approval.

  1. AWithin 90 days of the order approving the plan
  2. BWithin 180 days of the order approving the plan
  3. CWithin one year from the date of approval by the Adjudicating Authority, or the period provided in such law, whichever is laterCorrect
  4. DWithin one year from the date the committee of creditors approved the plan

Explanation

Section 31(4) gives one year from the Adjudicating Authority's approval date, or the period provided in the relevant law, whichever is later. The one-year clock does not run from the committee's vote.

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