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CS Professional · Corporate Restructuring, Valuation and Insolvency · Preparation and Approval of Resolution Plan

In a pre-packaged insolvency resolution process of Rao Auto Components Ltd, the committee of creditors has approved a plan and sent it to the Adjudicating Authority, which is satisfied that it meets section 30(2) requirements and has provisions for effective implementation. Under section 54L(1), within what time must it approve the plan?

Under section 54L(1), the Adjudicating Authority must approve a pre-packaged resolution plan by order within thirty days of receiving it, provided it is satisfied the plan meets section 30(2) requirements and has provisions for effective implementation.

  1. AWithin thirty days of receipt of the planCorrect
  2. BWithin fourteen days of receipt of the plan
  3. CWithin one year of the commencement of the process
  4. DWithin ninety days of the approval by the committee of creditors

Explanation

Section 54L(1) requires the Adjudicating Authority, if satisfied, to approve the plan by order within thirty days of receipt of the plan. It must also be satisfied that the plan has provisions for effective implementation. The other periods do not appear in section 54L.

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