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

Ravi Menon, a sole individual debtor, lives and works for gain in Kochi and defaults on a debt. Which authority is the Adjudicating Authority for his insolvency matters under Part III of the Code, subject to section 60?

The Adjudicating Authority is 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. NCLT deals with corporate persons, not individuals and firms under Part III.

  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 bench nearest to his registered office
  3. CThe High Court of the State where the creditor is located
  4. DThe Debt Recovery Appellate Tribunal in New Delhi

Explanation

Section 179 makes 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 the Adjudicating Authority. The NCLT handles corporate persons, so the NCLT option is wrong.

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