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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

Sunrise Textiles Ltd is undergoing CIRP. The committee of creditors (CoC) was constituted on 3 March. Under Section 22 of the IBC, by which date must the first meeting of the CoC be held?

The first CoC meeting must be held within seven days of the committee's constitution under Section 22(1). If the CoC was constituted on 3 March, the meeting must be held by 10 March. Other periods such as fourteen or thirty days do not apply.

  1. AWithin seven days, that is by 10 MarchCorrect
  2. BWithin fourteen days, that is by 17 March
  3. CWithin thirty days, that is by 2 April
  4. DWithin ten days, that is by 13 March

Explanation

Section 22(1) requires the first meeting of the CoC to be held within seven days of the constitution of the committee. Counting seven days from 3 March gives 10 March. Fourteen and thirty days are periods from other provisions and do not apply to this meeting.

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