Skip to content

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

The Adjudicating Authority approved Meghna Steels Ltd's resolution plan on 10 March 2026. The resolution applicant needs a regulatory approval under another law that does not itself specify any period. By when must the applicant obtain the necessary approvals under section 31(4)?

The applicant must obtain approvals required under other laws within one year from the Adjudicating Authority's approval date, or within the period that law provides, whichever is later. Here, with no period in the other law, the deadline is 10 March 2027.

  1. AWithin 90 days of the approval of the plan by the Adjudicating Authority
  2. BWithin 180 days of the approval of the plan by the committee of creditors
  3. CWithin one year from the date of approval by the Adjudicating Authority, i.e. by 10 March 2027, or within the period provided in that law, whichever is laterCorrect
  4. DWithin 30 days from the date the moratorium ceases

Explanation

Section 31(4) requires the resolution applicant to obtain the necessary approvals within one year from the date of approval by the Adjudicating Authority, or within the period provided in the relevant law, whichever is later. Since that law specifies no period, the one-year period applies, ending 10 March 2027. The other periods have no basis in the section.

Did you get it right without looking?

One question tells you little. A timed set on Corporate Insolvency Resolution Process shows your real accuracy, how long you take and where you lose marks.

Practise Corporate Insolvency Resolution ProcessFree diagnostic mock

More Corporate Insolvency Resolution Process questions