90-Day Timeline Under Regulation 2B Of IBBI Regulations For Schemes Of Compromise/Arrangement Is Directory, Not Mandatory: NCLAT, Chennai

The NCLAT, Chennai, has ruled that the "90-day timeline for schemes of compromise/arrangement is directory, not mandatory." This decision provides much-needed flexibility for companies undergoing corporate restructuring. The ruling clarifies that a company can exceed the 90-day period if there are valid reasons, as long as it has the consent of the committee of creditors. This judgment is a significant development for companies and insolvency professionals.