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CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

The resolution professional of Himalaya Foods Ltd files a termination application under Section 54D(3) on 10 July because no plan was approved within 90 days. Within what time must the Adjudicating Authority pass its order terminating the PPIRP, and who ordinarily bears the PPIRP costs if the order is passed under Section 54N(1)?

The Adjudicating Authority must pass the termination order within thirty days of the application, and the corporate debtor bears the PPIRP costs, if any. Section 54N(1) sets the thirty-day period for applications under Section 54D(3), and Section 54N(3) places the costs on the corporate debtor.

  1. AWithin 14 days; the creditors
  2. BWithin 30 days of the application; the corporate debtorCorrect
  3. CWithin 30 days of the application; the resolution professional
  4. DWithin 90 days; the corporate debtor

Explanation

Section 54N(1) requires the Adjudicating Authority, within thirty days of the application under Section 54D(3), to terminate the PPIRP. Section 54N(3) states the corporate debtor bears the PPIRP costs, if any. The resolution professional and creditors are not made liable for these costs.

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