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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

A fresh start application by Kavita Desai was admitted on 10 January, and the moratorium began that day. The resolution professional has found no ground for revocation and no revocation order is made. Kavita also files the application under section 81 with the required affidavit. Which statement is correct?

The moratorium lasts 180 days beginning with the date of admission and then ceases, unless the admission order is revoked earlier. It does not run until discharge, nor from filing, and the 14-day period concerns decisions, not moratorium duration.

  1. AThe moratorium ceases at the end of 180 days beginning with the date of admission, unless the admission order is revoked earlierCorrect
  2. BThe moratorium continues until the final discharge order is passed, with no time limit
  3. CThe moratorium ceases 90 days after the application is filed
  4. DThe moratorium ceases 14 days after the resolution professional reports

Explanation

The moratorium commences on admission and ceases at the end of 180 days beginning with that date, unless the admission order is revoked under section 91(2). Revocation ends the moratorium and process earlier. The 14-day period is only for deciding on admission or revocation applications.

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