Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

Meera Exports Ltd's approved resolution plan gives operational creditors nothing in the manner specified by the Board. An operational creditor appeals to the NCLAT against the order approving the plan. Which ground under Section 61(3) is available to it?

The available ground is that the debts owed to operational creditors have not been provided for in the resolution plan in the manner specified by the Board. This is a listed ground under Section 61(3)(iii) for appealing against an order approving a plan under section 31.

  1. ADebts owed to operational creditors have not been provided for in the manner specified by the BoardCorrect
  2. BThe liquidation order was passed without fraud
  3. CThe resolution professional charged fees above the market rate
  4. DThe financial creditors voted by a thin majority

Explanation

Section 61(3)(iii) lists non-provision for operational creditors' debts in the manner specified by the Board as a ground against a plan approval order. The other options are not grounds stated in Section 61(3).

Did you get it right without looking?

One question tells you little. A timed set on Adjudication and Appeals for Corporate Persons shows your real accuracy, how long you take and where you lose marks.

Practise Adjudication and Appeals for Corporate PersonsFree diagnostic mock

More Adjudication and Appeals for Corporate Persons questions