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CS Professional · Insolvency and Bankruptcy - Law and Practice · Insolvency Resolution of Individuals and Partnership Firms

Under section 122, a debtor files an application for bankruptcy. Which of the following must accompany it?

The application must be accompanied by the records of the insolvency resolution process under Chapter III of Part III, the statement of affairs on the application date, and a copy of the Adjudicating Authority's order permitting the debtor to apply for bankruptcy.

  1. AA resolution of the board of directors approving bankruptcy
  2. BA copy of the Adjudicating Authority's order under Chapter III of Part III permitting the debtor to apply for bankruptcy, along with the records of the insolvency resolution process and statement of affairsCorrect
  3. COnly the statement of affairs and the proposed trustee's consent
  4. DA certificate from the creditors' committee approving bankruptcy

Explanation

Section 122(1) requires the records of the insolvency resolution process under Chapter III of Part III, the statement of affairs on the date of application, and a copy of the Adjudicating Authority's order permitting the debtor to apply for bankruptcy. The debtor may propose a trustee, but need not. The other options are not required by the section.

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