Rules 15 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
After the creditors or members have agreed to a scheme, rules 15 to 17 move it to sanction. The company presents a petition in Form CAA.5 within seven days of the chairperson's report, the hearing is advertised not less than ten days before, and the order, in Form CAA.6, is filed with the Registrar within thirty days. This article reads these rules as amended up to G.S.R. 603(E) dated 4 September 2025 per the MCA e-book; later amendments should be checked.
Where the scheme is agreed, with or without modification, the company or its liquidator must present the sanction petition in Form CAA.5 within seven days of the chairperson's report. If it fails, a creditor or member may petition with the Tribunal's leave, and the company bears the cost. The hearing is advertised not less than ten days before the date. The order is in Form CAA.6 and directs a certified copy to be filed with the Registrar within thirty days of receipt.
Rule 15: the petition in CAA.5
Rule 15 has three sub-rules.
- 15(1). Where the proposed compromise or arrangement is agreed to by the members or creditors or both, with or without modification, the company, or its liquidator, shall within seven days of the filing of the chairperson's report present a petition to the Tribunal in Form CAA.5 for sanction.
- 15(2). Where the compromise or arrangement is proposed for or in connection with a reconstruction of any company or companies, or the amalgamation of two or more companies, the petition shall pray for appropriate orders and directions under section 230 read with section 232 of the Act.
- 15(3). If the company fails to present the petition, any creditor or member may, with the Tribunal's leave, present it, and the company is liable for the cost.
The seven days run from the filing of the chairperson's report in CAA.4, which is the last act covered by rules 9 to 14. Our format note on the petition to sanction a scheme in CAA-5 shows how a petition is usually laid out. If the scheme reaches this stage with open questions on notice or objectors, you can discuss the position with our legal consultation team before the hearing.
Rule 16: date and notice of hearing
Under rule 16(1), the Tribunal fixes a date for hearing the petition. Notice of the hearing is advertised in the same newspaper in which the notice of the meeting was advertised, or another newspaper as the Tribunal directs, not less than ten days before the date fixed. Rule 16(2) says the Tribunal also serves notice of the hearing on the objectors or their representatives under section 230(4), and on the Central Government and other authorities that made a representation under rule 8 and wish to be heard on it.
Rule 17: the order on the petition
Where the Tribunal sanctions the scheme:
- the order includes such directions on any matter, or such modifications in the scheme, as the Tribunal thinks fit for its proper working (17(1));
- the order directs that a certified copy be filed with the Registrar of Companies within thirty days from the date of receipt of the copy of the order, or such other time as the Tribunal fixes (17(2)); and
- the order is in Form CAA.6 with such variations as may be necessary (17(3)).
The thirty-day period runs from receipt of the certified copy and not from the date the order is pronounced. What happens to a sanctioned scheme under the Act is covered in our note on section 231: the Tribunal's power to enforce a compromise. The form for the filing with the Registrar is not named in rule 17.
Sequence from agreement to filing
| Step | Rule | Period or detail as printed |
|---|---|---|
| Chairperson's report filed | 14 | Within the Tribunal's time, else three days after the meeting |
| Petition in CAA.5 | 15(1) | Within seven days of the report |
| Petition by a creditor or member if the company does not | 15(3) | With the Tribunal's leave; the company liable for cost |
| Advertisement of hearing | 16(1) | Not less than ten days before the hearing |
| Notice to objectors and authorities | 16(2) | By the Tribunal |
| Order in CAA.6 | 17 | Certified copy filed with the Registrar within thirty days of receipt |
Example
Banyan Foods Limited's creditors approved a scheme with one modification, and the chairperson's report was filed on a Monday. The company files the CAA.5 petition within seven days of that filing. The Tribunal fixes a hearing date and the notice appears in the newspaper that carried the meeting notice, at least ten days before. An objector, a supplier, is served by the Tribunal. The order in CAA.6 sanctions the scheme with a direction about the timing of one payment; Banyan files the certified copy with the Registrar within thirty days of receiving it.
Need help with a sanction petition?
The petition has to match the chairperson's report and the meeting record, and the order has a short filing window once it is received. Our team can help prepare and track both through our legal consultation service.
Key takeaways
- The CAA.5 petition is due within seven days of the chairperson's report.
- If the company does not file, a creditor or member may do so with leave and the company bears the cost.
- Hearing notice is advertised not less than ten days before the hearing, in the meeting-notice newspaper or as the Tribunal directs.
- The order is in Form CAA.6 with necessary variations.
- A certified copy of the order goes to the Registrar within thirty days of receipt, unless the Tribunal fixes another time.
Read next
- Rules 9–14: voting, proxies and the chairperson's report
- Rules 18–24: section 232 mergers and the CAA-7 order
- Section 231: Tribunal power to enforce a compromise
- Petition to sanction a scheme: CAA-5 format
Disclaimer: Based on the Companies Act, 2013 rules named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.