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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Rohan Textiles Ltd. gave notice of a combination under section 6(2) on 1 April and has received no order from the Commission. It wishes to consummate the combination. Under section 6(2A) as currently stated, what is the position?

Rohan Textiles may consummate the combination only when one hundred and fifty days have passed from the notice or the Commission passes an order under section 31, whichever is earlier. The old 210-day period was substituted by 150 days from 10-9-2024.

  1. AIt may consummate after sixty days
  2. BIt may consummate after two hundred and ten days
  3. CIt may consummate once one hundred and fifty days have passed from the notice, or earlier if the Commission passes an order under section 31Correct
  4. DIt may consummate immediately because notice has been filed

Explanation

Section 6(2A) bars the combination from taking effect until 150 days have passed from the notice or the Commission passes orders under section 31, whichever is earlier. The 210-day figure was the earlier period, replaced with effect from 10-9-2024. Merely filing notice does not permit immediate consummation. Contravention can attract a penalty under section 43A.

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