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

The Board receives complaints about Meridian Insolvency Agency's working. It orders production of the agency's account books, summons its chairman and examines him on oath, and issues a commission to examine a witness. Which statement is correct?

The Board has the same powers as a civil court trying a suit under the Code of Civil Procedure, 1908 for these matters: production of books, summoning and examining on oath, inspection of documents, and issuing commissions. The powers apply to any person and need no prior court leave.

  1. AThe Board needs prior leave of a civil court for each step
  2. BOnly the Central Government may exercise these powers
  3. CThe Board has these powers only against insolvency professionals, not agencies
  4. DThe Board, while exercising powers under the Code, has the same powers as a civil court trying a suit under the Code of Civil Procedure, 1908 in these mattersCorrect

Explanation

Section 196(3) gives the Board civil court powers for discovery and production of books of account, summoning and examining persons on oath, inspecting books and documents of any person, and issuing commissions for examining witnesses or documents. These powers are not limited to professionals and need no court leave.

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