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CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

Veda Textiles Ltd has its registered office in Coimbatore. A financial creditor wants to start corporate insolvency resolution against it. Under the Code, which Adjudicating Authority has jurisdiction over the corporate debtor?

The Adjudicating Authority is the NCLT bench with territorial jurisdiction over the place of the corporate debtor's registered office, here Coimbatore. The creditor's location, the loan sanction place, and NCLAT are irrelevant because NCLAT is only the appellate forum.

  1. AThe NCLT bench having territorial jurisdiction over the place of the registered office of Veda Textiles LtdCorrect
  2. BThe NCLT bench nearest to the creditor's head office
  3. CThe Debt Recovery Tribunal where the largest loan was sanctioned
  4. DThe NCLAT sitting at New Delhi

Explanation

Section 60(1) makes the NCLT having territorial jurisdiction over the place where the registered office of the corporate person is located the Adjudicating Authority. The creditor's location or the loan sanction place is irrelevant. NCLAT is the appellate body, not the first adjudicating forum.

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