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CS Professional · Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

Kaveri Components Ltd files a section 10 application, but it omits the information required to be furnished with it, so the application is incomplete. The Adjudicating Authority proposes to reject it. What must the Adjudicating Authority do before rejecting?

Before rejecting an incomplete section 10 application, the Adjudicating Authority must give the applicant notice to rectify the defects within seven days from the date the applicant receives that notice. Immediate rejection is not allowed, and fourteen days is only the decision period.

  1. AGive notice to the applicant to rectify the defects within seven days of receipt of the noticeCorrect
  2. BGive notice to the applicant to rectify the defects within fourteen days of receipt of the notice
  3. CReject at once, since an incomplete application cannot be cured
  4. DRefer the matter to the Board to appoint an interim resolution professional

Explanation

The proviso to section 10(4) requires the Adjudicating Authority, before rejecting an incomplete application, to give notice to the applicant to rectify the defects within seven days from receipt of the notice. Fourteen days is the period for the main order, not for rectification.

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