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CS Professional · Insolvency and Bankruptcy - Law and Practice · Debt Recovery and Securitization

Under section 21 of the RDB Act, a debtor appeals to the Appellate Tribunal against the Tribunal's order. On which amount is the pre-deposit computed?

The deposit is fifty per cent of the debt due as determined by the Tribunal under section 19. It is not based on the bank's original claim, the debtor's net worth or the value of any secured asset.

  1. AFifty per cent of the debt due as determined by the Tribunal under section 19Correct
  2. BFifty per cent of the amount claimed by the bank in its original application
  3. CTwenty-five per cent of the debtor's net worth
  4. DSeventy-five per cent of the value of the secured asset

Explanation

Section 21 fixes the base as the amount of debt due from the person as determined by the Tribunal under section 19, not the bank's claim, net worth or asset value. The rate is fifty per cent.

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