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CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy Order for Individuals and Partnership Firms

The creditors' committee in the bankruptcy of Vikram Sethi approved completion of administration of his estate under section 137 on 10 June, which is five months after the bankruptcy commencement date. By when must the bankruptcy trustee apply for the discharge order?

The trustee must apply by 17 June. Section 138(1)(b) requires the application within seven days of the committee of creditors' approval of completed estate administration when that approval comes before one year from the bankruptcy commencement date has elapsed.

  1. ABy 17 June, within seven days of the approvalCorrect
  2. BBy the date one year from the commencement date, and not earlier
  3. CBy 10 July, within thirty days of the approval
  4. DBy 10 September, within three months of the approval

Explanation

Under section 138(1)(b), where committee approval of completion of administration is obtained before the one-year period ends, the trustee must apply within seven days of that approval. Approval on 10 June gives a deadline of 17 June. Waiting a full year would ignore clause (b), and thirty days or three months have no basis in the section.

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