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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Tarang Motors Ltd gave a notice under section 6(4) for a combination. The Commission then declared that notice void ab initio under section 6(6). Under the provided proviso to section 43A, which statement is correct?

The parties may give a section 6(2) notice within thirty days of the Commission's order declaring the section 6(4) notice void, and the Commission cannot take section 43A penalty action until that period ends. The proviso protects them during the thirty days.

  1. AThe parties may give a notice under section 6(2) within thirty days of the Commission's order, and no action under section 43A can be taken until those thirty days expireCorrect
  2. BThe Commission may impose the penalty immediately because the notice was void
  3. CThe parties have sixty days to give a notice under section 6(2) before any penalty action
  4. DThe parties may never give a fresh notice once the section 6(4) notice is void

Explanation

The proviso gives thirty days from the order under section 6(6) to give a section 6(2) notice. The Commission cannot act under section 43A during that period. Immediate penalty or a sixty-day window both misstate the proviso.

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