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CS Professional · Insolvency and Bankruptcy - Law and Practice · Cross Border Insolvency (Elective 7.5)

Zenith Forgings Ltd has its registered office in Pune. Insolvency proceedings against it are to be started in India. Under the Insolvency and Bankruptcy Code, 2016, which forum is the Adjudicating Authority for the insolvency resolution of this corporate debtor?

The Adjudicating Authority is the National Company Law Tribunal that has territorial jurisdiction over the place of the corporate debtor's registered office, here Pune. The Code fixes jurisdiction by registered office, not by the location of creditors, so the DRT, High Court or Board is not the forum.

  1. AThe National Company Law Tribunal having territorial jurisdiction over Pune, where its registered office is locatedCorrect
  2. BThe Debt Recovery Tribunal nearest to its largest creditor
  3. CThe High Court of the State where most of its creditors are located
  4. DThe Insolvency and Bankruptcy Board of India at New Delhi

Explanation

Section 60(1) makes the NCLT with territorial jurisdiction over the place of the registered office the Adjudicating Authority for corporate persons. Pune is the registered office location, so the NCLT bench covering Pune acts. The DRT and High Court are not the authority for corporate debtors, and the Board is a regulator, not an adjudicator.

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