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CS Professional · Insolvency and Bankruptcy - Law and Practice · Debt Recovery and Securitization

A section 17 application by Gupta Foods Pvt Ltd was filed before the DRT on 1 June. The DRT has not disposed of it and has been extending the time for recorded reasons. By which date must the application be disposed of at the latest, failing which a party may approach the Appellate Tribunal for expeditious disposal?

The outer limit is 30 September, four months from filing on 1 June. Section 17(5) sets sixty days for disposal, extendable for recorded reasons, but total pendency cannot exceed four months. Beyond that, section 17(6) lets a party seek the Appellate Tribunal's direction for expeditious disposal.

  1. A31 July, being sixty days from filing
  2. B30 September, being four months from filingCorrect
  3. C30 November, being six months from filing
  4. D31 December, being seven months from filing

Explanation

Section 17(5) requires disposal within sixty days, extendable for reasons recorded in writing, but total pendency cannot exceed four months from the date of the application. Four months from 1 June ends on 30 September. Under section 17(6), after four months without disposal, a party may apply to the Appellate Tribunal. The sixty-day date is only the initial period.

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