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CS Professional · Corporate Restructuring, Valuation and Insolvency · Fast Track Mergers

Under a fast track merger, the transferee company, Sagar Ports Ltd, filed the approved scheme with the Central Government, Registrar and Official Liquidator on 1 March. The Registrar sends no communication. The Central Government is of the view that the scheme is not in public interest. Which statement is correct under Section 233?

The Central Government may file an application before the Tribunal within sixty days of receiving the scheme, asking that it be considered under Section 232. The thirty-day period applies to the Registrar and Official Liquidator, and the Central Government does not need their objections first.

  1. AThe Central Government may file an application before the Tribunal within sixty days of receipt of the scheme, requesting that it be considered under Section 232Correct
  2. BThe Central Government must file the application within thirty days, the period allowed to the Registrar for objections
  3. CThe Central Government can itself reject the scheme by order without approaching the Tribunal
  4. DThe Central Government can approach the Tribunal only after the Registrar has raised written objections

Explanation

Section 233(5) lets the Central Government, if it thinks the scheme is not in public interest or the interest of creditors, apply to the Tribunal within sixty days of receiving the scheme. The thirty-day period is for the Registrar or Official Liquidator, and the power does not depend on their objections, since it applies 'for any reason'.

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