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

Kaveri Components Pvt Ltd's directors made the declaration under section 54A stating that the application for PIRP will be filed within a stated time. The declaration must state a definite period of filing that does not exceed which limit?

The declaration by the majority of directors must commit to filing the PIRP application within a definite period not exceeding ninety days. The one hundred and twenty days figure relates to completing the process, not to the time for filing the application.

  1. AThirty days
  2. BSixty days
  3. COne hundred and twenty days
  4. DNinety daysCorrect

Explanation

Section 54A(2)(f)(i) requires the majority of directors to declare that the application will be filed within a definite period not exceeding ninety days. Sixty days is not the statutory cap, and 120 days is the time limit for completing the PIRP itself.

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