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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Aarav Pharma gave a notice under sub-section (4) of section 6 for acquiring a rival. The Commission later declared that notice void ab initio under sub-section (6) of section 6 by an order. What does the proviso to section 43A allow in this situation?

The acquirer or parties may give a notice under section 6(2) within thirty days of the Commission's order declaring the earlier section 6(4) notice void ab initio. The Commission cannot take action under section 43A until that thirty-day period has expired.

  1. AThe parties may give a notice under sub-section (2) of section 6 within thirty days of the order, and no action under section 43A is taken until that period expiresCorrect
  2. BThe parties must give a fresh notice within ninety days, with penalty accruing from the date of the first notice
  3. CThe Commission must immediately impose the penalty and then permit a fresh notice
  4. DNo further notice is allowed and the combination is automatically void

Explanation

The proviso gives the acquirer or parties thirty days from the Commission's order under section 6(6) to give a notice under section 6(2). The Commission cannot act under section 43A until those thirty days expire. Ninety days and immediate penalty are not what the text states.

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