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CS Professional · Insolvency and Bankruptcy - Law and Practice · Insolvency Resolution of Individuals and Partnership Firms

Neha, a bankrupt in Chennai, has a civil suit pending against a supplier. The Debt Recovery Tribunal is asked which forum can decide questions of priorities and claims by or against her arising from her bankruptcy. Which is correct?

The Debt Recovery Tribunal decides these matters. The Code gives it jurisdiction, notwithstanding anything in any other law, over suits, claims and questions of priorities or law and fact arising from the individual debtor's insolvency or bankruptcy, so the civil court and the trustee do not decide them.

  1. AThe civil court where the suit is pending, as ordinary law prevails
  2. BThe Debt Recovery Tribunal, which has jurisdiction notwithstanding any other lawCorrect
  3. CThe High Court exclusively
  4. DThe bankruptcy trustee, by his own decision

Explanation

The DRT has jurisdiction notwithstanding any other law to entertain suits or proceedings by or against the individual debtor, claims by or against her, and questions of priorities or other law or fact arising from insolvency or bankruptcy. The civil court and trustee do not hold this jurisdiction.

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