CS Professional · Insolvency and Bankruptcy - Law and Practice · Group Insolvency
Two group companies, Kaveri Foods Ltd and Kaveri Cold Chain Ltd, are in separate CIRPs with the same set of financial creditors holding claims in both. The creditors fear inconsistent decisions. Which is a practical need for group coordination in this case?
The practical need is to avoid duplicated effort and conflicting decisions where the same creditors and shared assets feature in several processes. Coordination improves efficiency, reduces cost and supports consistent outcomes, without removing professionals, waiving claim filing or extending the statutory timeline indefinitely.
- ATo avoid duplication of efforts and conflicting decisions on common creditors and shared assetsCorrect
- BTo remove the resolution professionals from office
- CTo waive the requirement of filing claims
- DTo extend the CIRP period indefinitely
Explanation
Common creditors and shared assets mean parallel processes can duplicate work and reach conflicting outcomes. Coordination reduces cost and inconsistency. It does not remove professionals, waive claims or extend timelines indefinitely.
Did you get it right without looking?
One question tells you little. A timed set on Group Insolvency shows your real accuracy, how long you take and where you lose marks.
More Group Insolvency questions
- In a group of three insolvent companies, a tribunal pools all assets and liabilities, treats intra-group claims as extinguished, and lets cr…
- Lotus Infra Ltd's liquidator wants to pool the assets of Lotus and its affiliate because their affairs were so intermingled that separating …
- Three companies of the Sundaram Group, Sundaram Steels Ltd, Sundaram Logistics Ltd and Sundaram Power Ltd, have given cross-guarantees to ea…
- A group has companies in India and Singapore, and the same insolvency court is asked to coordinate both proceedings. Under the UNCITRAL ente…
- Eta Ltd and Theta Ltd are group companies in separate CIRPs. To avoid duplicated costs, the Tribunal appoints the same insolvency profession…
- In the Videocon Industries matter, the NCLAT and the Supreme Court dealt with the resolution of a group of companies. Which feature best des…