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CS Professional · Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process

Ananya Logistics filed a Section 9 application, but the form omitted a mandatory attachment. The Adjudicating Authority found the application incomplete and was inclined to reject it. What must the Adjudicating Authority do first?

It must first give the applicant a notice to rectify the defect within seven days of receiving that notice. The proviso to Section 9(5) bars rejection for an incomplete application without this opportunity, so immediate rejection would be wrong.

  1. AReject it immediately because incompleteness is a ground for rejection
  2. BGive notice to the applicant to rectify the defect within seven days of receipt of the noticeCorrect
  3. CAdmit it conditionally and allow the defect to be cured during the resolution process
  4. DRefer the matter to the Board to decide whether the defect is material

Explanation

The proviso to Section 9(5) requires the Adjudicating Authority, before rejecting under clause (ii)(a) for incompleteness, to give notice to the applicant to rectify the defect within seven days of receipt of the notice. Immediate rejection would skip this mandatory step.

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