Section 54-I of IBC : Section 54-I: Committee Of Creditors

Explanation using Example

Here is a hypothetical scenario demonstrating the application of Section 54-I of The Insolvency and Bankruptcy Code, 2016:

Imagine a company, XYZ Pvt. Ltd., is facing financial distress and opts for a pre-packaged insolvency resolution process. The company files for insolvency and the process is initiated on April 1st.

As per Section 54-I, the resolution professional appointed for XYZ Pvt. Ltd. must constitute a committee of creditors within seven days of the insolvency commencement date, which would be by April 8th. The resolution professional compiles a list of claims and confirms it, for...

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