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

The resolution professional of Kaveri Textiles Ltd files a termination application under Section 54D(3) after no plan was approved. Within how many days of the date of that application must the Adjudicating Authority pass its order terminating the PIRP?

The Adjudicating Authority must pass the termination order within thirty days of the date of the resolution professional's application, as Section 54N(1) provides. The same order must also state how pending avoidance-transaction proceedings will continue.

  1. ASeven days
  2. BFourteen days
  3. CThirty daysCorrect
  4. DNinety days

Explanation

Section 54N(1) requires the Adjudicating Authority to pass the termination order within thirty days of the date of the application. The order also provides for the manner of continuation of avoidance-transaction proceedings.

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