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CS Professional · Insolvency and Bankruptcy - Law and Practice · Pre-Packaged Insolvency Resolution Process (Elective 7.5)

In a PIRP, the RP of Sundaram Foods Ltd is collecting information to detect avoidable or wrongful transactions. For which period must the information on business operations and financial and operational payments be collected, counted from the pre-packaged insolvency commencement date?

The look-back is the previous two years from the pre-packaged insolvency commencement date. The RP collects business operations and financial and operational payments for that period to find avoidable or wrongful transactions, while assets and liabilities are listed as on the initiation date.

  1. AThe previous one year
  2. BThe previous two yearsCorrect
  3. CThe previous three years
  4. DThe previous five years

Explanation

The RP's power to collect information covers business operations and financial and operational payments for the previous two years from the pre-packaged insolvency commencement date. The list of assets and liabilities is taken as on the initiation date. One year is too short.

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