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

Ravi Traders Pvt Ltd, an unsecured creditor, wants to apply for bankruptcy of its debtor, Mr. Anil Mehta, an individual. The Adjudicating Authority had earlier passed an order under sub-section (4) of section 100 on 10 March. Within what period from that order must the bankruptcy application be filed?

The application must be filed within three months of the Adjudicating Authority's order under section 100(4). Section 121(2) fixes this three-month period from the date of the order that opens the route to a bankruptcy application, so the other periods are incorrect.

  1. AWithin 30 days of the order
  2. BWithin three months of the orderCorrect
  3. CWithin six months of the order
  4. DWithin one year of the order

Explanation

Section 121(2) requires an application for bankruptcy to be filed within three months of the date of the order passed under the sections listed in section 121(1), which include section 100(4). The 30-day, six-month and one-year periods do not appear in this provision.

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