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

Ramesh, a daily-wage worker in Nashik who satisfies the eligibility conditions for a fresh start, files his application personally without engaging any resolution professional. Within how many days of receiving the application must the Adjudicating Authority direct the Board to nominate a resolution professional?

The Adjudicating Authority must direct the Board within seven days of receiving the application. The ten-day period applies to the Board, which must nominate a resolution professional after receiving that direction. So seven days is correct where the debtor applies personally.

  1. AThree days
  2. BSeven daysCorrect
  3. CTen days
  4. DFourteen days

Explanation

Under section 82(3), where the debtor files the application himself and not through a resolution professional, the Adjudicating Authority directs the Board within seven days of receipt to nominate a resolution professional. Ten days is the period given to the Board to nominate, not the period for the Adjudicating Authority to give the direction.

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