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CS Professional · Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process

Under section 54E, the moratorium declared in a pre-packaged insolvency resolution process for Bharat Alloys Ltd takes effect from the date of the order. Until when does it continue?

The moratorium runs from the date of the order until the date on which the pre-packaged insolvency resolution process period comes to an end. It is linked to the duration of the process itself, not to the formation of the committee of creditors or a fixed number of days.

  1. ATill the date on which the pre-packaged insolvency resolution process period comes to an endCorrect
  2. BTill the committee of creditors is first constituted
  3. CTill the resolution professional files the first status report
  4. DTill a period of one hundred and eighty days from the order, irrespective of the process period

Explanation

Section 54E(2) says the moratorium order has effect from the date of the order till the date on which the PIRP period comes to an end. It is tied to the process period, not to the CoC constitution, reports or a fixed 180 days.

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