Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

In the fast track process of Kaveri Textiles Ltd, the resolution professional thinks ninety days will not suffice. Under which condition may the resolution professional apply to the Adjudicating Authority for extension?

The resolution professional may seek extension only when instructed by a committee of creditors resolution supported by seventy-five per cent of the voting share. A simple majority, the debtor's board, or the professional's own judgment cannot trigger the application under the fast track provisions.

  1. AA resolution of the committee of creditors supported by 75% of the voting share instructs the applicationCorrect
  2. BA resolution of the committee of creditors passed by a simple majority of the voting share
  3. CThe corporate debtor's board passes a resolution by two-thirds
  4. DThe resolution professional decides on his own that more time is needed

Explanation

Section 56(2) lets the resolution professional apply for extension only if instructed by a committee of creditors resolution supported by 75% of the voting share. A simple majority or the professional's own view is insufficient, and the debtor's board has no role in this.

Did you get it right without looking?

One question tells you little. A timed set on Corporate Insolvency Resolution Process shows your real accuracy, how long you take and where you lose marks.

Practise Corporate Insolvency Resolution ProcessFree diagnostic mock

More Corporate Insolvency Resolution Process questions