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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

Ms. Kavita Rao, an insolvency professional, is under investigation by the Board for suspected non-compliance. The Board's investigating officer wants to compel her to hand over her working papers and to appear and answer questions on oath. Which statement correctly reflects the Board's powers under Section 196(3)?

The Board has the powers of a civil court under the Code of Civil Procedure, 1908 under Section 196(3). It can require production of documents and summon and examine persons on oath. It needs no prior court order, and the powers are not limited to information utilities.

  1. AThe Board has civil court powers under the Code of Civil Procedure, 1908, including discovery and production of books and documents and summoning persons to be examined on oathCorrect
  2. BThe Board must first obtain a civil court order before it can summon any person
  3. CThe Board may examine documents but has no power to examine anyone on oath
  4. DThe Board's civil court powers apply only to information utilities, not insolvency professionals

Explanation

Section 196(3) gives the Board the same powers as a civil court trying a suit for discovery and production of books and documents, summoning and examining persons on oath, inspecting books and registers, and issuing commissions. No prior court order is required, and the powers are not confined to information utilities.

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