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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

While examining a complaint against insolvency professional Kavita Rao, the Board wants her books and registers produced and wishes to summon a witness to be examined on oath. Which statement is correct under the Code?

The Board has the same powers as a civil court under the Code of Civil Procedure, 1908 while trying a suit. These include discovery and production of books and documents and summoning persons and examining them on oath, so no separate court order is required.

  1. AThe Board must first obtain a court order, as it has no powers of a civil court
  2. BThe Board has the powers of a civil court under the Code of Civil Procedure, 1908 while trying a suit, in respect of discovery and production of books and summoning and examining persons on oathCorrect
  3. CThe Board can only request voluntary production, since compulsion lies solely with the insolvency professional agency
  4. DThe Board has civil court powers only for issuing commissions, not for summoning persons

Explanation

Section 196(3) gives the Board the same powers as a civil court trying a suit for discovery and production of books of account and documents, summoning and enforcing attendance and examining on oath, inspection of books and registers, and issuing commissions. So both needs here are covered; the options denying or limiting these powers are wrong.

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