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

Kaveri Textiles Ltd, a company that has defaulted on a loan, passes a special resolution of its shareholders approving the filing of an application for initiating CIRP under section 10. It files the application with the Adjudicating Authority and names the resolution professional proposed to be appointed as interim resolution professional. The application is complete and no disciplinary proceeding is pending against the proposed professional. Within how many days of receipt must the Adjudicating Authority pass an order admitting or rejecting it?

The Adjudicating Authority must pass its order within fourteen days of receiving the corporate applicant's application under section 10. It admits the application if complete and no disciplinary proceeding is pending against the proposed professional, and rejects it if incomplete.

  1. ASeven days
  2. BFourteen daysCorrect
  3. CThirty days
  4. DForty-five days

Explanation

Under section 10(4), the Adjudicating Authority must, within fourteen days of receipt of the application, either admit it if complete (and no disciplinary proceeding is pending against the proposed resolution professional) or reject it if incomplete. Seven days is the period given to rectify defects after a notice, not the period for deciding.

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