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

Sunita files a fresh start application personally on 1 March. The Adjudicating Authority sends the direction to the Board on 6 March. By what date must the Board nominate a resolution professional, and who then appoints that nominee?

The Board must nominate within ten days of receiving the direction, so by 16 March. The Adjudicating Authority then appoints the nominated resolution professional by order. The seven-day period runs for the Adjudicating Authority's direction, not for the Board's nomination, and the debtor does not appoint.

  1. A13 March; the Board itself
  2. B16 March; the Adjudicating Authority by orderCorrect
  3. C8 March; the Adjudicating Authority by order
  4. D16 March; the debtor by written consent

Explanation

Under section 82(4) the Board has ten days from receiving the direction, so 6 March plus ten days is 16 March. Section 82(5) says the Adjudicating Authority appoints the nominee by order. The 13 March option wrongly applies seven days, and the Board does not itself appoint.

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