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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

Ramesh, a daily-wage worker in Nashik, filed a fresh start application and the Adjudicating Authority admitted it. The resolution professional later finds that Ramesh has inherited a dwelling unit after admission. Under the Code, on which ground can the resolution professional seek revocation of the admission order?

The resolution professional can seek revocation because a change in the debtor's financial circumstances, such as acquiring a dwelling unit, makes him ineligible for a fresh start. Section 91(1)(a) lists this as a ground for revoking the admission order.

  1. AChange in financial circumstances making the debtor ineligible for a fresh startCorrect
  2. BFailure of the creditors to file claims within the moratorium
  3. CExpiry of one year from the date of admission
  4. DRefusal of the bankruptcy trustee to submit a report

Explanation

Section 91(1)(a) allows the resolution professional to seek revocation if, due to a change in financial circumstances, the debtor becomes ineligible for a fresh start. Owning a dwelling unit is a bar under section 80(2)(e). The other options are not grounds listed in section 91.

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