Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Liquidation on or after Failing of Resolution Plan

Kaveri Foods Ltd's liquidation order was passed on 1 March. The aggrieved promoter files an appeal to the NCLAT on 20 April, alleging fraud in relation to the order, and shows sufficient cause for the delay. What is the longest delay beyond the 30-day period that the NCLAT may condone under section 61?

The NCLAT may condone a delay of at most fifteen days beyond the 30-day appeal period, and only if sufficient cause is shown. Even a genuine reason cannot extend the filing beyond that limit, so a longer delay cannot be condoned.

  1. AFifteen daysCorrect
  2. BThirty days
  3. CSixty days
  4. DThere is no limit if sufficient cause exists

Explanation

Section 61(2) allows a filing after 30 days only if there is sufficient cause, and the extension cannot exceed fifteen days. Here the appeal is filed about 50 days after the order (about 20 days late), so it would exceed the 45 days total even with condonation and sufficient cause cannot rescue it. The condonable period is fifteen days.

Did you get it right without looking?

One question tells you little. A timed set on Liquidation on or after Failing of Resolution Plan shows your real accuracy, how long you take and where you lose marks.

Practise Liquidation on or after Failing of Resolution PlanFree diagnostic mock

More Liquidation on or after Failing of Resolution Plan questions