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CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

The committee of creditors approves a bankruptcy trustee's final report on 10 June, which is four months after the bankruptcy commencement date. By when must the trustee apply to the Adjudicating Authority for a discharge order?

Because approval came before one year from bankruptcy commencement, the trustee must apply for the discharge order within seven days of the committee's approval of completion of administration. He need not wait for the year to end.

  1. AWithin seven days of the approvalCorrect
  2. BOnly after one year from the bankruptcy commencement date
  3. CWithin thirty days of the approval
  4. DWithin seven days of the bankrupt's request

Explanation

Section 138(1)(b) says that where approval under Section 137 is obtained before the one-year period expires, the trustee applies within seven days of that approval. Waiting a full year is the alternative in clause (a), which applies when approval is not earlier. Thirty days is not in the text.

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