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

In the PPIRP of Sundaram Engineering Ltd, the 90-day period from the commencement date expired on 30 May without the CoC approving any resolution plan. What must the resolution professional do?

The resolution professional must file an application with the Adjudicating Authority for termination of the PPIRP on the day after the 90-day period expires, here 31 May, under section 54D(3). There is no option to wait until day 120 or to use the CIRP extension route.

  1. AFile an application for termination of the PPIRP on 31 MayCorrect
  2. BWait until day 120 and then file for termination
  3. CFile an application for extension of 90 days under section 12
  4. DSeek liquidation order directly from the CoC without approaching the Adjudicating Authority

Explanation

Section 54D(3) says that where no plan is approved within the 90-day period, the RP shall on the day after its expiry file an application for termination. Waiting until day 120 is not permitted by the text. Section 12 extension relates to CIRP, not PPIRP.

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