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CS Professional · Insolvency and Bankruptcy - Law and Practice · Debt Recovery and Securitization

Mr Iyer, a defendant, is aggrieved by an order of the Recovery Officer under section 30 attaching his property for a bank debt of Rs 6 crore as determined by the Tribunal. He appeals to the Tribunal. Under section 30A, which statement is correct?

Mr Iyer must deposit fifty per cent of the Rs 6 crore debt, i.e. Rs 3 crore, with the Tribunal. Section 30A says an appeal against a Recovery Officer's order under section 30 is not entertained without that deposit.

  1. AThe Tribunal will not entertain the appeal unless he deposits 50 per cent of the debt due, i.e. Rs 3 crore, with the TribunalCorrect
  2. BThe appeal needs no deposit because it is against a Recovery Officer, not the Tribunal
  3. CThe Tribunal must entertain the appeal and may decide the deposit at the end
  4. DHe must deposit 75 per cent, i.e. Rs 4.5 crore, with the Recovery Officer

Explanation

Section 30A applies to appeals against Recovery Officer orders under section 30 by the person from whom the debt is due. The Tribunal cannot entertain the appeal without a deposit of fifty per cent of the debt as determined, here Rs 3 crore. Unlike section 21, section 30A has no proviso for reduction.

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