Site navigation

The second proviso to section 31(1) of the Insolvency and Bankruptcy Code, 2016, inserted in 2026,…

The new proviso lets the Authority "first approve the implementation of the resolution plan" and thereafter approve "the manner of distribution provided therein within a…

Choose your answer

The second proviso to section 31(1) of the Insolvency and Bankruptcy Code, 2016, inserted in 2026, allows the Adjudicating Authority, on an application by the resolution professional backed by not less than sixty-six per cent of the CoC's voting share, to:

Select one answer
Answer and explanation

Correct answer A

The new proviso lets the Authority "first approve the implementation of the resolution plan" and thereafter approve "the manner of distribution provided therein within a period of thirty days" from approving implementation. This separates implementation of the plan from questions about how its proceeds are shared. The Authority's ordinary scrutiny under section 30(2) is not dispensed with.

Practice for these exams

Related exam syllabi

Related questions in this topic