CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies
The committee of creditors (CoC) of Varuna Textiles Ltd was constituted on 4 March. Within how many days of its constitution must its first meeting be held under Section 22 of the IBC?
The first CoC meeting must be held within seven days of the committee's constitution. Section 22(1) fixes this period, so a CoC formed on 4 March must meet by 11 March. Longer periods such as fourteen or thirty days are not provided in the section.
- AWithin three days
- BWithin seven daysCorrect
- CWithin fourteen days
- DWithin thirty days
Explanation
Section 22(1) requires the first meeting of the CoC to be held within seven days of the constitution of the committee. So the meeting for a CoC constituted on 4 March must be held by 11 March. Fourteen and thirty days are not the period stated in the section.
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