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

In a pre-packaged process, the RP of Bharat Polymers Ltd wants to collect information for judging the company's financial position and spotting avoidable or wrongful transactions. For what look-back period does the Code specify that business operations and financial and operational payments information be collected, counted from the pre-packaged insolvency commencement date?

The Code specifies the previous two years from the pre-packaged insolvency commencement date for information on business operations and for financial and operational payments. Assets and liabilities are listed separately as on the initiation date.

  1. APrevious one year
  2. BPrevious two yearsCorrect
  3. CPrevious three years
  4. DPrevious five years

Explanation

Section 54F(3)(f)(i) and (ii) refer to 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 separately taken as on the initiation date.

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