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CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Business outside India and Issues Relating thereto

A seizure was made on 1 January under section 37A. A court stayed the proceedings for 90 days, and the stay was vacated and communicated on 1 April. For computing the 180-day period within which the Competent Authority must dispose of the petition, which statement is correct?

The period of the court stay is excluded from the 180 days, and a further period of at least thirty days is granted from the date the vacation of the stay is communicated. So the Competent Authority does not lose time because of the stay.

  1. AThe stay period is counted, and no extra time is given after vacation
  2. BThe stay period is excluded, and at least thirty further days are granted from communication of vacation of the stayCorrect
  3. CThe stay period is excluded, but no further time is granted after vacation
  4. DThe period is extended by exactly 180 days from the date of vacation of the stay

Explanation

The Explanation to section 37A(3) excludes the period of court stay while computing the 180 days and grants a further period of at least thirty days from the date of communication of vacation of the stay. Counting the stay or granting no extra time contradicts this.

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