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

The Adjudicating Authority approved the resolution plan for Narmada Steels Ltd on 10 March 2026. The resolution applicant needs approvals under other laws for implementing the plan. By when must these approvals be obtained, as per section 31(4)?

The resolution applicant must obtain the necessary approvals within one year of the Adjudicating Authority's approval of the plan, or within the period given in the relevant law, whichever is later. The rule uses the later of the two periods, not the earlier.

  1. AWithin 90 days from the date of approval by the committee of creditors
  2. BWithin 180 days from the insolvency commencement date
  3. CWithin one year from the date of approval by the Adjudicating Authority, or the period provided in the relevant law, whichever is laterCorrect
  4. DWithin 30 days from the date of approval by the Adjudicating Authority, or the period provided in the relevant law, whichever is earlier

Explanation

Section 31(4) requires the resolution applicant to obtain necessary approvals under any law within one year from the Adjudicating Authority's approval, or within the period provided in such law, whichever is later. The 'earlier' option reverses the rule, and the 90-day and 180-day periods are not stated in this provision.

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