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

Gomti Logistics Ltd's operational creditor application omitted the required affidavit that no dispute notice has been given. The Adjudicating Authority finds the application incomplete. What must it do before rejecting it?

It must first give the applicant a notice to rectify the defect within seven days of receiving that notice. Only if the defect is not cured may it reject the application as incomplete under section 9(5)(ii)(a). The fourteen-day period relates to deciding admission.

  1. AReject it at once, as incompleteness is a ground without any condition
  2. BGive notice to the applicant to rectify the defect within seven days of receiving that noticeCorrect
  3. CGive notice to the applicant to rectify the defect within fourteen days
  4. DTransfer it to the financial creditors for completion

Explanation

The proviso to section 9(5) requires the Adjudicating Authority, before rejecting under clause (ii)(a) for incompleteness, to give the applicant notice to rectify the defect within seven days of receipt of the notice. Fourteen days is the period for deciding the application, not for rectification.

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