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CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy Order for Individuals and Partnership Firms

Ramesh Iyer, an individual who lives and runs a small printing business in Coimbatore, wishes to file an application for bankruptcy as a debtor. Under the Code, which authority has jurisdiction to entertain his application?

The Debt Recovery Tribunal with territorial jurisdiction over the place where the debtor actually and voluntarily resides, carries on business or personally works for gain is the Adjudicating Authority for individuals and firms, so Ramesh must approach the DRT at Coimbatore's jurisdiction.

  1. AThe Debt Recovery Tribunal having territorial jurisdiction over the place where he actually and voluntarily resides, carries on business or personally works for gainCorrect
  2. BThe National Company Law Tribunal at the place of his registered office
  3. CThe High Court of the State where his creditors are located
  4. DThe Debt Recovery Tribunal at the place where the largest creditor has its head office

Explanation

Section 179(1) makes the Debt Recovery Tribunal the Adjudicating Authority for individuals and firms, with jurisdiction over the place where the individual actually and voluntarily resides, carries on business or personally works for gain. The NCLT is not the forum for individuals under this Part, and the creditor's location is irrelevant.

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