Question

Section 233 of the Companies Act, 2013, deals with “fast track merger”. What is the time duration and the concerned authority for approval?

• A. 1 Year, Regional Director
• B. 60–90 Days, Regional Director
• C. 60–90 Days, NCLT
• D. 45–90 Days, NCLAT

Hint:

Remember: "Fast Track" means bypassing the NCLT. If you see a question about Section 233, always look for "Regional Director" and the "60–90 days" window!

Answer 1

The Correct Option is B

1. 60-90 Days, NCLT and 45-90 Days, NCLAT: Both these options can be eliminated together because fast track mergers deliberately bypass the Tribunal system. Section 233 exists so that small companies and holding-subsidiary mergers do not have to queue up before the NCLT, and the NCLAT only hears appeals, it does not approve mergers at all.
2. 1 Year, Regional Director: The authority named is correct this time, but a one year window contradicts the entire idea of a fast track scheme, which is meant to wrap up in a couple of months, not a full year.
3. 60-90 Days, Regional Director: This matches the scheme exactly. The Central Government delegates its approval power under Section 233 to the Regional Director, and the process is designed to conclude within about 60 to 90 days of the papers being filed.

So the pairing that correctly describes Section 233 is 60-90 Days, Regional Director.

Answer 2

A fast track merger under Section 233 is a shortcut route meant only for straightforward combinations, small companies merging with each other, or a holding company merging with its wholly owned subsidiary. Because the transactions are simple, the law hands the approval job to an authority below the Tribunal and sets a tight clock. With that picture in mind, consider each choice.

1. 45-90 Days, NCLAT: The NCLAT is an appellate forum for challenging Tribunal orders; it does not approve mergers of any kind, so this option fails on the authority alone.
2. 60-90 Days, NCLT: The timing looks plausible, but the NCLT is precisely the body that fast track mergers are designed to avoid. Routing this kind of merger to the NCLT would defeat the purpose of Section 233.
3. 1 Year, Regional Director: The Regional Director is indeed the correct authority, yet a twelve month timeline is far too long for a scheme whose entire selling point is speed.
4. 60-90 Days, Regional Director: This option gets both pieces right, matching authority and timeline as laid down for the fast track procedure.

Putting the authority and the timeline together, the accurate description of Section 233 is the Regional Director approving within 60 to 90 days.

Therefore, the correct answer is 60-90 Days, Regional Director.