RAS question
The maximum time limit for completing Corporate Insolvency Resolution Process (CIRP) is:
Correct answer: (B) 330 days.
The maximum time limit for completing the Corporate Insolvency Resolution Process is 330 days, including extensions and time spent in legal proceedings.
Explanation
Under Section 12 of the Insolvency and Bankruptcy Code, the Corporate Insolvency Resolution Process starts with a 180-day completion period from admission of the application. The Code permits an extension beyond 180 days, but that extension cannot exceed 90 days and cannot be granted more than once. The later proviso, inserted through the 2019 amendment, sets the outer boundary: CIRP must mandatorily be completed within 330 days from the insolvency commencement date. That 330-day cap includes both any extension granted under Section 12 and the time taken in legal proceedings connected with the resolution process. Therefore, 330 days is the maximum limit, not merely a routine extension period.
Why the other options are wrong
- (A) 270 days reflects the earlier 180-day period plus a possible 90-day extension, but it misses the later 330-day outer limit introduced through the 2019 amendment.
- (C) 365 days is beyond the statutory cap, because the Code fixes 330 days as the mandatory maximum including litigation time.
- (D) 180 days is only the original completion period from admission of the application, and Section 12 allows extension before applying the 330-day outer limit.
Concept
This tests the insolvency and bankruptcy framework under Indian Economy, especially statutory timelines under the IBC. It recurs in RAS because the answer turns on a precise legal ceiling, not just the ordinary 180-day process period.