CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency
An applicant, 'Nyaya Resolution Forum', applied to the Board for registration as an insolvency professional agency. The Board is minded to reject the application because the proposed governing board does not meet the specified composition. Which statement is correct under the Code?
The Board may reject the registration application only after giving the applicant an opportunity of being heard, and the rejection order must be communicated to the applicant within fifteen days. The seven-day period applies only to acknowledging receipt, and no tribunal approval is needed.
- AThe Board may reject without hearing, since composition is a mandatory requirement
- BThe Board may reject only after giving the applicant an opportunity of being heard, and must communicate the order within fifteen daysCorrect
- CThe Board must reject within seven days of receipt, failing which registration is deemed granted
- DThe Board may reject only after obtaining the approval of the adjudicating authority
Explanation
Section 201(2) permits rejection only after giving the applicant an opportunity of being heard, and requires the order to be communicated within fifteen days. The seven-day period relates only to acknowledging the application, not deemed registration. No tribunal approval is required.
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