TechWave Private Limited is a small Company, which found itself in a difficult financial situation, unable to pay off its debts. It was struggling, with creditors knocking at its doors, but its total debt was not large-j

Section 56 of the Insolvency and Bankruptcy Code, 2016 prescribes the time period for completion of fast track corporate insolvency resolution process. It provides that 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. 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 a resolution passed at a meeting of the committee of creditors and supported by a vote of seventy-five percent of the voting share. 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 a period of ninety days, it may, by order, extend the duration of such process beyond the said period of 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. The Adjudicating Authority (NCLT) decided to convert TechWave Ltd.'s regular CIRP into a fast-track process because the company's total debt was under ₹ 1 crore, and the fast-track process would allow for a quicker resolution of the insolvency. Given the small debt size, the NCLT felt that a 90-day resolution period was more appropriate to resolve the case efficiently.