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

Meridian Components Pvt Ltd, a corporate debtor, is admitted into fast track corporate insolvency resolution process. Counting from the insolvency commencement date, what is the basic period within which the process must be completed, before any extension?

The fast track corporate insolvency resolution process must be completed within ninety days from the insolvency commencement date. The longer 180-day period belongs to the ordinary process, and any fast track extension is available only on application to the Adjudicating Authority.

  1. ANinety daysCorrect
  2. BOne hundred and eighty days
  3. CSixty days
  4. DOne hundred and thirty-five days

Explanation

Section 56(1) requires the fast track process to be completed within ninety days from the insolvency commencement date. One hundred and eighty days is the period for the ordinary process stated in section 15, and 135 days is the longest fast track duration after extension, not the basic period.

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