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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

The Board proposes to reject the registration application of Deccan Resolution Professionals Agency because it finds the application deficient. Which procedure must the Board follow?

The Board may reject only by order after giving the applicant an opportunity of being heard, and must communicate that order to the applicant within fifteen days. The seven-day period applies only to acknowledging receipt of an application, not to communicating rejection.

  1. AReject by order only after giving the applicant an opportunity of being heard, and communicate the order within fifteen daysCorrect
  2. BReject without hearing, because hearing is required only for cancellation
  3. CReject by order and communicate it within seven days of receipt of the application
  4. DReject only with the prior approval of the Central Government

Explanation

The Code states that no rejection order may be made without giving the applicant an opportunity of being heard, and every such order must be communicated within fifteen days. The seven-day period relates to acknowledging receipt of an application, so option C confuses the two.

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