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CS Professional · Corporate Restructuring, Valuation and Insolvency · Types of Corporate Restructuring

Under a scheme proposed by Aravali Steels Ltd, notice of the creditors' meeting is sent to the Income-tax authorities, RBI, SEBI, the Registrar and other regulators. Within what period must these authorities make representations, failing which they are presumed to have none?

Regulators and authorities must make representations within thirty days from the date of receipt of the notice. If they do not, it is presumed that they have no representations to make on the proposals under the scheme.

  1. AFifteen days from the date of receipt of the notice
  2. BThirty days from the date of receipt of the noticeCorrect
  3. CSixty days from the date of receipt of the notice
  4. DOne month from the date of the Tribunal's order

Explanation

Section 230(5) requires notice to the Central Government, income-tax authorities, RBI, SEBI, Registrar, stock exchanges, Official Liquidator, CCI if necessary and other sectoral regulators, and says representations must be made within thirty days from receipt of the notice. Otherwise it is presumed they have no representations. One month relates to voting by persons under sub-section (4), not to regulators.

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