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

Trustee Sneha has completed administration and distribution of Mr. Iyer's bankrupt estate and convenes the committee of creditors under section 137. She presents her report on administration. Within what time must the committee approve the report, and what else does it decide?

The committee of creditors must approve the trustee's report within seven days of receiving it, and it also determines whether the trustee should be released under section 148. Section 137(3) states both requirements.

  1. AWithin seven days of receipt, and whether the trustee should be released under section 148Correct
  2. BWithin thirty days of receipt, and whether fees are to be reduced
  3. CWithin fourteen days of receipt, and whether the bankruptcy is to be annulled
  4. DWithin seven days of the meeting date, and whether a fresh trustee is to be appointed

Explanation

Section 137(3) requires the committee to approve the report within seven days of receiving it and to determine whether the trustee should be released under section 148. The other periods and decisions are not in the section.

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