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

The Adjudicating Authority admitted Meena's fresh start application and the resolution professional, Mr. Iyer, applied for revocation on 3 March on the ground that Meena wilfully failed to comply with the Chapter. What is the period within which the Adjudicating Authority must admit or reject this revocation application, and what follows on admission?

The Adjudicating Authority must decide within fourteen days of receiving the revocation application. If it admits the application, the moratorium and the fresh start process cease to have effect, and a copy of the order is sent to the Board for recording in the register.

  1. AWithin 14 days of receipt; the moratorium and fresh start process cease to have effectCorrect
  2. BWithin 7 days of receipt; the debts stand discharged
  3. CWithin 30 days of receipt; the debtor becomes bankrupt automatically
  4. DWithin 14 days of receipt; the moratorium continues until the Board directs otherwise

Explanation

Section 91(2) gives fourteen days from receipt to admit or reject the application. Under section 91(3), on admission the moratorium and the fresh start process cease to have effect. A copy goes to the Board for the register.

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