Time period for completion of fast track corporate insolvency resolution process [ Section 56 ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Time period for completion of fast track corporate insolvency resolution process [ Section 56 of IBC, 2016] Time Limit [ Section 56(1) ] Subject to the provisions of sub-section (3), the fast track corporate in solvency resolution process shall be completed within a period of ninety days from the insolvency commencement date. Fast track commencement date means the date of admission of an application by the Adjudicating Authority for initiating the fast track process under Chapter IV of Part II of the Code; Extension: The Adjudicating Authority may extend time period for fast track corporate insolvency resolution process Requirement of Voting 75% [ Section 56(2) ] The resolution professional shall file an application to the Adjudicating Authority to extend the period of the fast track corporate insolvency resolution process beyond ninety days if instructed to do so by a resolution passed at a meeting of the committee of creditors and supported by a vote of seventy five per cent of the voting share . Extension of the fast track process period Regulation 39 of IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 (1) The committee is of the opinion that the fast track process cannot be completed within the stipulated 90 days, it may instruct the resolution professional to make an application to the Adjudicating Authority under section 56 to extend the fast track process period. (2) The resolution professional shall, on receiving an instruction from the committee under this Regulation, make an application to the Adjudicating Authority for such extension. Extension of time Limit by Adjudicating authority [ Section 56(3) ] On receipt of an application under sub-section (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that fast track corporate insolvency resolution process cannot be completed within a period of ninety days , it may, by order, extend the duration of such process beyond the said period of ninety days by such further period, as it thinks fit, but not exceeding forty-five days : Provided that any extension of the fast track corporate insolvency resolution process under this section shall not be granted more than once . Approval of resolution plan Regulation 38(4) of IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 The resolution professional shall submit the resolution plan approved by the committee to the Adjudicating Authority, at least fifteen days before the expiry of the maximum period permitted under section 56 for the completion of the fast track corporate insolvency resolution process, with the certification that- (a) the contents of the resolution plan meet all the requirements of the Code and the Regulations; and (b) the resolution plan has been approved by the committee: Provided that the timeline specified in this sub-regulation shall not apply to an ongoing fast track corporate insolvency resolution process which has completed 50th day from its commencement date. Initiation of Liquidation [ Section 33(1) of IBC, 2016 ] Where the Adjudicating Authority,- (a) does not receive a resolution plan under section 30(6) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56 , as the case may be,; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall- (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered.