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CS Professional · Corporate Restructuring, Valuation and Insolvency · Fast Track Mergers

Sigma Ltd (transferee) files its approved fast track scheme with the Central Government, Registrar and Official Liquidator. The Registrar communicates no view within thirty days, and the Central Government files no Tribunal application within sixty days of receiving the scheme. Which statement is correct?

The Registrar's silence within thirty days is presumed to be no objection, and the Central Government's failure to file a Tribunal application is deemed no objection. The scheme therefore proceeds to registration without Tribunal sanction, per section 233(4) and (6) provisos.

  1. AThe scheme lapses for want of Tribunal sanction
  2. BThe Registrar is presumed to have no objection, and the Central Government is deemed to have no objection to the schemeCorrect
  3. CThe Official Liquidator must separately sanction the scheme
  4. DThe scheme must be re-approved by members

Explanation

Under section 233(4) proviso, if no communication is made by the Registrar or Official Liquidator within thirty days, no objection is presumed. Under section 233(6) proviso, if the Central Government files no application before the Tribunal, it is deemed to have no objection. The scheme then proceeds to registration.

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