Module: General Practice
Q95: The "Pre-Packaged Insolvency Resolution Process" (PPIRP) for MSMEs is designed to be faster than the standard CIRP. What is the statutory time limit for the completion of the entire process from the commencement date?
✅ Correct Answer: B
The Code mandates that the PPIRP must be completed within 120 days from the pre-packaged insolvency commencement date.
The breakdown of this timeline requires the Resolution Professional (RP) to submit the resolution plan (approved by the Committee of Creditors) to the Adjudicating Authority (NCLT) within 90 days.
The Adjudicating Authority then has an additional 30 days to approve or reject the plan, bringing the total to 120 days.
In contrast, the standard CIRP has a timeline of 180 days (extendable to 330 days).
The breakdown of this timeline requires the Resolution Professional (RP) to submit the resolution plan (approved by the Committee of Creditors) to the Adjudicating Authority (NCLT) within 90 days.
The Adjudicating Authority then has an additional 30 days to approve or reject the plan, bringing the total to 120 days.
In contrast, the standard CIRP has a timeline of 180 days (extendable to 330 days).