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

Anita Rao, a creditor, sends a notice of demand to Vikram, an individual debtor, for an unpaid sum. Vikram does not pay. Anita files an application under section 95 for the insolvency resolution process. Which statement about the documents that must accompany her application is correct?

The application must be accompanied by details of the debts owed, proof that the debtor failed to pay within fourteen days of service of the notice of demand, and relevant evidence of default or non-repayment. A copy must also be given to the debtor.

  1. AIt must include evidence of the debt and of the debtor's failure to pay within fourteen days of service of the notice of demandCorrect
  2. BIt must include proof that the debtor failed to pay within thirty days of the notice of demand
  3. CNo documents are needed if a copy goes to the debtor
  4. DOnly a certificate from the Board confirming the default is required

Explanation

Section 95(4) requires details and documents on the debts owed as on the date of application, the debtor's failure to pay within fourteen days of service of the notice of demand, and relevant evidence of default. Thirty days is not the period in the text. A copy to the debtor is also required but does not replace the documents.

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