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

A fresh start order was made in relation to Suresh on 1 March. On 10 October of the same year he files a fresh application under Section 80, and all his other conditions are satisfied. What is the position?

Suresh is ineligible. The Code requires that no previous fresh start order was made in the twelve months preceding the application date. His earlier order was made about seven months before, so it falls within that period and creditor consent cannot change this.

  1. AHe is eligible because more than six months have passed
  2. BHe is ineligible because the previous order was made within the preceding twelve months of the application dateCorrect
  3. CHe is eligible if the creditors consent
  4. DHe is ineligible only if the earlier order was revoked

Explanation

Section 80(2)(g) requires that no previous fresh start order has been made in the preceding twelve months of the date of application. From 1 March to 10 October is about seven months, so the earlier order falls inside the twelve-month window and he is ineligible. Creditor consent is irrelevant.

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