Whether the application for initiating fast track insolvency resolution process can be made in respect of the following companies? Examine. S. No. Scenario 1 A Ltd., an unlisted company having assets amounting to ₹99 lak

According to Section 55 of the Insolvency and Bankruptcy Code, 2016, a corporate insolvency resolution process carried out under Chapter IV of Part II of the Code is called a fast track corporate insolvency resolution process. The Ministry of Corporate Affairs (MCA) notification dated 14 th June, 2017, specifies that an application for fast-track CIRP may be made in respect of the following corporate debtors: Small Company: As defined under Section 2(85) of the Companies Act, 2013. Startup: As defined in the Ministry of Commerce and Industry notification G.S.R. 501(e) dated 23 rd May, 2017 (excluding partnership firms). Unlisted Company with Total Assets: An unlisted company with total assets, as reported in the financial statement of the immediately preceding financial year, not exceeding ₹1 crore . Definitions: Small Company [Section 2(85) of Companies Act, 2013]: A company (other than a public company) with paid-up share capital not exceeding ₹50 lakh (or such higher amount not exceeding ₹10 crore) AND turnover not exceeding ₹2 crore (or such higher amount not exceeding ₹100 crore). Startup (MCA Notification): An entity incorporated as a private limited company or registered as a partnership firm/LLP, up to 7 years from incorporation (10 years for biotech), with turnover not exceeding ₹25 crore for any financial year since incorporation, and working towards innovation/development/improvement of products/processes/services or a scalable business model with high potential for employment/wealth creation. (Excludes entities formed by splitting up/reconstruction of existing businesses). Let's examine each scenario: 1. A Ltd., an unlisted company having assets amounting to ₹99 lakh. Analysis: This is an unlisted company with total assets of ₹99 lakh (which is less than ₹1 crore). Eligibility: Yes . 2. Network LLP which was incorporated in 2005 having peak turnover of ₹20 crore in FY 2012-13. Analysis: An LLP cannot be a 'small company'. For 'startup' status, its turnover must not exceed ₹25 crore for *any* financial year since incorporation. Its peak turnover was ₹20 crore, which is within the limit. However, it was incorporated in 2005, making it older than 7 years (or 10 years for biotech, which is not specified). Also, the notification specifies 'startup (other than partnership firm)', but LLPs are generally treated differently from companies for this purpose. The primary issue is its age. Eligibility: No . (It's too old to be considered a startup for fast-track purposes). 3. B Pvt. Ltd. was demerged in 2005 from Cable Ltd. B Pvt. Ltd. clocked peak turnover of ₹22 crore in FY 2011-12. Analysis: This company was formed by demerger. The startup definition explicitly excludes entities formed by splitting up or reconstruction of an existing business. Its turnover of ₹22 crore is within the ₹25 crore limit for startups, but its origin disqualifies it. Eligibility: No . 4. A Ltd., a listed company having assets amounting to ₹55 lakh. Analysis: Fast-track CIRP is available for 'unlisted companies' with assets not exceeding ₹1 crore. This company is listed. Eligibility: No . 5. Tom Pvt. Ltd. is having paid up capital of ₹35 lakh. It has turnover amounting to ₹1 crore. Analysis: This is a private company. Paid-up capital of ₹35 lakh (< ₹50 lakh) and turnover of ₹1 crore (< ₹2 crore) qualify it as a 'small company' under Section 2(85) of the Companies Act, 2013. Eligibility: Yes . 6. Z Ltd., a dormant company is having assets amounting to ₹6.5 crore. Analysis: A dormant company is still a company. Its assets are ₹6.5 crore, which exceeds the ₹1 crore limit for unlisted companies. There's no information to classify it as a small company or startup. Eligibility: No . Summary of Eligibility: S. No. Scenario Correct Answer 1 A Ltd., an unlisted company having total assets amounting to ₹99 lakh as per latest audited financial statements of the immediately preceding financial year. Yes 2 Network LLP which was incorporated in the year 2005 having peak turnover of ₹20 crore in the FY 2012-13. Network LLP's business is such that it generates very high employment. No 3 B Pvt. Ltd. was demerged in the year 2005 from Cable Ltd. B Pvt. Ltd. clocked peak turnover of ₹22 crore in FY 2011-12 and is engaged in the business which results in the improvement and development of products. No 4 A Ltd., a listed company having assets amounting to ₹55 lakh as per latest audited financial statements of the immediately preceding financial year. No 5 Tom Pvt. Ltd. is having paid up capital of ₹35 lakh. It has turnover amounting to ₹1 crore as per the profit & loss account for the immediately preceding financial year. Yes 6 Z Ltd., a dormant company is having assets amounting to ₹6.5 crore as per the last available financial statements. No