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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

Meridian Textiles Ltd, a company with its registered office in Coimbatore, is undergoing a corporate insolvency resolution process. Its lender wants to know which forum has jurisdiction over insolvency resolution and liquidation of the company. Under the Code, which authority is the Adjudicating Authority?

The Adjudicating Authority for corporate insolvency resolution and liquidation is the National Company Law Tribunal that has territorial jurisdiction over the place where the corporate person's registered office is located, so the Coimbatore company falls under that bench.

  1. AThe Debt Recovery Tribunal in Chennai
  2. BThe National Company Law Tribunal having territorial jurisdiction over the place of the registered officeCorrect
  3. CThe High Court of the State where the largest creditor is located
  4. DThe Insolvency and Bankruptcy Board of India

Explanation

For insolvency resolution and liquidation of corporate persons, the Adjudicating Authority is the NCLT with territorial jurisdiction over the registered office. The DRT handles individual and partnership firm matters, and the Board is a regulator, not the adjudicating forum.

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