CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy for Individuals and Partnership Firms
Imran obtained a fresh start order on 10 March 2026. On 20 November 2026 he again meets all monetary limits and files a fresh application. No other process is subsisting against him. Under Section 80, what is the likely outcome?
Imran is not eligible. Section 80 disallows an application if a previous fresh start order was made in the twelve months before the application date. His order was only about eight months earlier. The Code sets a twelve-month window, not a lifetime limit.
- AEligible, since more than six months have passed
- BNot eligible, because a fresh start order was made within the preceding twelve months of the application dateCorrect
- CEligible, because the earlier order was fully performed
- DNot eligible, because a person can have only one fresh start order in a lifetime
Explanation
Section 80(2)(g) bars an application if a previous fresh start order was made in the preceding twelve months. From 10 March 2026 to 20 November 2026 is about eight months, so he is within the bar. The Code states a twelve-month window, not a lifetime bar.
Did you get it right without looking?
One question tells you little. A timed set on Bankruptcy for Individuals and Partnership Firms shows your real accuracy, how long you take and where you lose marks.
More Bankruptcy for Individuals and Partnership Firms questions
- Ramesh Iyer, a sole trader, lives and runs his hardware shop in Coimbatore. A creditor wishes to file an insolvency application against him …
- After a bankruptcy order is passed against Anil Verma, an unsecured creditor, Sharma Finance, wants to file a recovery suit against him for …
- A bankruptcy order under section 126 is made against the partnership firm Mehta & Sons, which has three partners. Under the Code's definitio…
- Vikram Traders, a proprietary firm, defaulted on a loan of Rs 80,000 to a bank, and the Central Government has not notified any higher minim…
- Mehta Traders, a partnership firm in Surat, is adjudged bankrupt by a bankruptcy order under section 126 of the Code. Rohan and Kavita were …
- A suit was filed against Meera Nair, an individual debtor, in a civil court, and a dispute has arisen on the priority of a creditor's claim …