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

Under section 30A of the RDB Act, a person appeals against a Recovery Officer's order but has not made the required deposit. What is the legal consequence?

The Tribunal shall not entertain the appeal. Section 30A makes deposit of fifty per cent of the debt due, as determined by the Tribunal, a precondition, so an appeal against a Recovery Officer's order without the deposit cannot be entertained.

  1. AThe appeal is heard, and the deposit is adjusted in the final order
  2. BThe appeal is automatically allowed
  3. CThe Tribunal shall not entertain the appealCorrect
  4. DThe Recovery Officer must stay recovery until the deposit is made

Explanation

Section 30A states that the appeal shall not be entertained by the Tribunal unless the person has deposited fifty per cent of the debt due as determined by the Tribunal. Non-deposit therefore bars entertainment of the appeal itself; nothing in the section provides for later adjustment or for automatic stay.

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