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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

Vikram's gross annual income is Rs 60,000, his assets are worth exactly Rs 20,000 and his qualifying debts are exactly Rs 35,000. He has no dwelling unit, is not an undischarged bankrupt, faces no subsisting process and has no earlier fresh start order. He applies through a resolution professional. Which is correct?

Vikram is eligible. The conditions require income, assets and qualifying debts not to exceed Rs 60,000, Rs 20,000 and Rs 35,000, so amounts exactly at the ceilings qualify. The Code also allows the application to be made personally or through a resolution professional.

  1. AHe is ineligible because each figure must be strictly below the limit
  2. BHe is ineligible because income must be below Rs 50,000
  3. CHe is eligible because each figure does not exceed its limit, and the application may be made personally or through a resolution professionalCorrect
  4. DHe is eligible only if he applies personally

Explanation

Section 80(2) uses the phrase 'does not exceed' for income (Rs 60,000), assets (Rs 20,000) and qualifying debts (Rs 35,000), so figures exactly equal to the limits qualify. The debtor may apply either personally or through a resolution professional. All other conditions are met.

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