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CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

The Insolvency and Bankruptcy Board of India failed to perform an act within the period specified in the IBC in a matter before the NCLT. Under Section 198, what may the relevant Adjudicating Authority do?

The Adjudicating Authority may condone the delay, but it must record its reasons in writing. Section 198 gives this power where the Board does not perform an act within the period specified in the Code, and it applies notwithstanding anything else in the Code.

  1. ACondone the delay for reasons recorded in writingCorrect
  2. BCondone the delay without recording any reasons
  3. CPenalise the Board automatically and close the matter
  4. DRefer the matter to the NCLAT for condonation

Explanation

Section 198 empowers the relevant Adjudicating Authority, where the Board does not perform an act within the Code's period, to condone the delay, but only for reasons recorded in writing. Writing reasons is a requirement, and the power is not with the NCLAT.

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