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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

The Board receives a complaint against an agency, Western Insolvency Professionals Association, alleging it has not followed the Code. The Board summons the agency's secretary, examines him on oath and asks for inspection of its registers. Which statement best describes the Board's authority?

The Board may do this on its own. While exercising powers under the Code it has the powers of a civil court under the Code of Civil Procedure, including summoning persons, examining them on oath, discovery of documents and inspecting books and registers; no tribunal order or consent is needed.

  1. AIt can do so only after obtaining an order from the Adjudicating Authority
  2. BIt has civil court powers under the Code of Civil Procedure for these matters, including summoning, examination on oath and inspection of documentsCorrect
  3. CIt can summon persons but cannot examine them on oath
  4. DIt can inspect registers only with the agency's written consent

Explanation

Section 196(3) gives the Board the same powers as a civil court trying a suit for discovery and production of documents, summoning and examining on oath, inspection of books and registers at any place, and issuing commissions. No prior tribunal order or consent is required.

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