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CS Professional · Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

A financial creditor wishes to file a fast track application against Bharat Gears Ltd, which belongs to a category notified by the Central Government as eligible. Along with the application, what must be furnished under section 57?

The application must be accompanied by proof of default evidenced by records available with an information utility or other means specified by the Board, and by such other information as the Board specifies to establish that the corporate debtor is eligible for fast track resolution.

  1. AProof of default as evidenced by records with an information utility or other means specified by the Board, plus other information specified by the Board showing eligibilityCorrect
  2. BOnly a board resolution of the corporate debtor admitting default
  3. CA resolution plan approved by the CoC
  4. DA certificate from the Adjudicating Authority that the debtor is eligible

Explanation

Section 57 requires proof of default from an information utility records or other means specified by the Board, and other Board-specified information to establish eligibility for fast track. A CoC-approved plan cannot exist before commencement, and the Adjudicating Authority issues no prior certificate.

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