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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

The Adjudicating Authority admitted the CIRP application against Kaveri Textiles Ltd and a committee of creditors (CoC) was constituted on 3 March. Under Section 22 of the IBC, by what date must the first meeting of the CoC be held?

The first CoC meeting must be held within seven days of the CoC's constitution under Section 22(1). With constitution on 3 March, the meeting must take place by 10 March. Longer periods such as fourteen or thirty days are not provided in that provision.

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

Explanation

Section 22(1) requires the first meeting of the CoC to be held within seven days of its constitution. Constituted on 3 March, the last date is 10 March. Fourteen days relates to the old timeline for appointing an IRP and is not the rule for the first meeting.

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