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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulatory Approvals of Scheme

The Tribunal sanctions a compromise sought by a liquidator and, under Section 459(1), attaches a condition that the liquidator report quarterly. The liquidator later ignores this condition. What may the Tribunal do under Section 459(1)?

The Tribunal may rescind or withdraw the sanction. Section 459(1) lets it grant sanction subject to conditions it thinks fit and, if a condition is contravened, cancel that sanction.

  1. ARescind or withdraw the sanctionCorrect
  2. BOnly impose a fine under Section 262
  3. CConvert the sanction into a Central Government approval
  4. DNothing, as conditions cannot be attached

Explanation

Section 459(1) allows the Tribunal to grant sanction subject to conditions, limitations or restrictions it thinks fit and, on contravention of any such condition, to rescind or withdraw the sanction. Section 262 is omitted and gives no power.

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