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CS Professional · Corporate Restructuring, Valuation and Insolvency · Liquidation on or after Failing of Resolution Plan

During verification of a claim of Rs 40 lakh by Sahyadri Traders against a company in liquidation, the liquidator doubts the supporting invoices. What may he do under the Code?

The liquidator may require the creditor, the corporate debtor or any other person to produce any further document or evidence he considers necessary to verify the whole or part of the claim, before admitting or rejecting it.

  1. ARequire the creditor, the corporate debtor or any other person to produce further documents or evidence he thinks necessary to verify the claimCorrect
  2. BReject the claim at once, since doubt alone is enough
  3. CAsk only the corporate debtor's former directors for documents, not the creditor
  4. DRefer the claim to the Committee of Creditors for verification

Explanation

The liquidator verifies claims and may require any creditor, the corporate debtor or any other person to produce documents or evidence he considers necessary to verify the whole or part of the claim. Immediate rejection without verification skips this step, and no Committee of Creditors verification is provided.

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