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CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

Sunrise Textiles Ltd has its registered office in Coimbatore, Tamil Nadu. A financial creditor wishes to start insolvency resolution against it. Which forum is the Adjudicating Authority for the corporate debtor under the Code?

The Adjudicating Authority is the National Company Law Tribunal that has territorial jurisdiction over the place of the corporate debtor's registered office, here Coimbatore. The creditor's location does not decide the forum, and the DRT or NCLAT do not act as the first-instance authority for corporate persons.

  1. AThe National Company Law Tribunal having territorial jurisdiction over Coimbatore, where the registered office is locatedCorrect
  2. BThe National Company Law Tribunal bench nearest to the creditor's head office, wherever it is
  3. CThe Debt Recovery Tribunal having jurisdiction over the creditor's branch
  4. DThe National Company Law Appellate Tribunal at New Delhi

Explanation

Section 60(1) makes the NCLT with territorial jurisdiction over the place of the registered office the Adjudicating Authority for corporate persons. The creditor's location is irrelevant, so the bench near the creditor's office is wrong. The DRT and NCLAT are not the first-instance forum.

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