Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy for Individuals and Partnership Firms

A suit was filed against Meera Nair, an individual debtor, in a civil court, and a dispute has arisen on the priority of a creditor's claim in her insolvency under the Code. Which statement is correct about the jurisdiction of the Debt Recovery Tribunal?

The DRT can entertain suits or proceedings by or against the debtor, claims by or against her, and any question of priorities, law or facts arising from her insolvency. Section 179(2) applies notwithstanding any other law, so it is not restricted to priorities alone or dependent on civil court transfer.

  1. AThe DRT can entertain any suit or proceeding by or against the debtor and any question of priorities or law or facts arising out of her insolvency, despite any other lawCorrect
  2. BThe DRT can decide only questions of priorities and has no power over suits by or against the debtor
  3. CThe DRT has jurisdiction only if the civil court transfers the matter with consent of all creditors
  4. DThe DRT can decide questions of fact but must refer all questions of law to the High Court

Explanation

Section 179(2) gives the DRT jurisdiction, notwithstanding any other law, over suits or proceedings by or against the individual debtor, claims by or against her, and any question of priorities or other question of law or facts arising out of the insolvency. The restrictive options add limits not found in the text.

Did you get it right without looking?

One question tells you little. A timed set on Bankruptcy for Individuals and Partnership Firms shows your real accuracy, how long you take and where you lose marks.

Practise Bankruptcy for Individuals and Partnership FirmsFree diagnostic mock

More Bankruptcy for Individuals and Partnership Firms questions