Section 55 Fast track corporation insolvency resolution process
“(1) A corporate insolvency resolution process carried out in accordance with this Chapter shall be called as fast track
corporate insolvency resolution process.
(2) An application for fast track corporate insolvency resolution process may be made in respect of the following corporate
debtors, namely: –
(a) a corporate debtor with assets and income below a level as may be notified by the Central Government; or
(b) a corporate debtor with such class of creditors or such amount of debt as may be notified by the Central
Government; or
(c) such other category of corporate persons as may be notified by the Central Government.”
VL Note : –
Section 56 Time period for completion of fast track corporate insolvency resolution process
“(1) Subject to the provisions of sub-section (3), the fast track corporate insolvency resolution process shall be completed
within a period of ninety days from the insolvency commencement date.
(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 way of 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.
(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 ninety days, it may, by order,
extend the duration of such process beyond the said period 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”
VL Note : –
Section 57 Manner of initiating fast track corporate insolvency resolution process
“An application for fast track corporate insolvency resolution process may be filed by a creditor or corporate debtor as the
case may be, along with-
(a) the proof of the existence of default as evidenced by records available with an information utility or such other means
as may be specified by the Board; and
(b) such other information as may be specified by the Board to establish that the corporate debtor is eligible for fast
track corporate insolvency resolution process. Manner of initiating fast track corporate insolvency resolution process.”
VL Note : –
Section 58 Applicability of Chapter II to this Chapter
“The process for conducting a corporate insolvency resolution process under Chapter II and the provisions relating to
offences and penalties under Chapter VII shall apply to this Chapter as the context may require.”
VL Note : –