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CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy Order for Individuals and Partnership Firms

Vikram carries on business and resides in Pune. He wishes to file an insolvency application as an individual debtor. Which forum is the Adjudicating Authority, and what applies to the minimum default amount?

The Adjudicating Authority is the Debt Recovery Tribunal having territorial jurisdiction where Vikram resides or carries on business. The Part applies where default is at least one thousand rupees, though the Central Government may notify a higher minimum not exceeding one lakh rupees.

  1. AThe Debt Recovery Tribunal with territorial jurisdiction over where he resides or carries on business; the default must be at least one thousand rupees unless a higher amount, up to one lakh rupees, is notifiedCorrect
  2. BThe NCLT at Mumbai; the default must be at least one lakh rupees
  3. CThe High Court of Maharashtra; there is no minimum default
  4. DThe Debt Recovery Appellate Tribunal; the default must be at least ten lakh rupees

Explanation

For individuals and firms the Adjudicating Authority is the DRT with territorial jurisdiction over the place of residence or business. The Part applies where default is at least one thousand rupees, and the Central Government may notify a higher minimum of not more than one lakh rupees.

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