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

Ravi Kulkarni runs a proprietary business in Pune and ordinarily resides there. He has defaulted on a loan. Which authority is the Adjudicating Authority for his insolvency matter under Part III, subject to section 60?

The Debt Recovery Tribunal with territorial jurisdiction over the place where the individual debtor actually and voluntarily resides, carries on business or personally works for gain is the Adjudicating Authority for individuals and firms, subject to section 60.

  1. AThe National Company Law Tribunal at Mumbai
  2. BThe Debt Recovery Tribunal having territorial jurisdiction over where he resides or carries on business or works for gainCorrect
  3. CThe High Court of the state where the lender is headquartered
  4. DThe Insolvency and Bankruptcy Board of India

Explanation

Section 179(1) makes the Debt Recovery Tribunal with territorial jurisdiction over the place where the individual actually and voluntarily resides, carries on business or personally works for gain the Adjudicating Authority. The NCLT handles corporate matters, and the Board is a regulator, not an adjudicator.

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