Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

An application for bankruptcy names an insolvency professional as the proposed bankruptcy trustee. The Adjudicating Authority receives it on 1 March. By what time must it direct the Board to confirm that no disciplinary proceedings are pending, and within what period must the Board then respond?

The Adjudicating Authority must direct the Board within seven days of receiving the application, and the Board must then confirm or reject and nominate another trustee within ten days of receiving that direction. This is the timeline in Section 125(1) and (2).

  1. AWithin seven days of receiving the application; the Board responds within ten days of the directionCorrect
  2. BWithin ten days of receiving the application; the Board responds within seven days
  3. CWithin seven days; the Board responds within fourteen days
  4. DWithin fourteen days; the Board responds within ten days

Explanation

Section 125(1) requires the Adjudicating Authority to direct the Board within seven days of receiving the application. Under Section 125(2), the Board must within ten days of the direction either confirm the trustee or reject and nominate another. So the periods are seven days and ten days.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Insolvency and Bankruptcy Code shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Insolvency and Bankruptcy CodeFree diagnostic mock

More Introduction to Insolvency and Bankruptcy Code questions