CS Professional · Insolvency and Bankruptcy - Law and Practice · Insolvency Resolution of Individuals and Partnership Firms
Zenith Steels Ltd is undergoing a corporate insolvency resolution process before the NCLT, Mumbai. Its promoter, Mr. Arvind Nair, a personal guarantor to the company's debt, resides in Pune, where a bankruptcy proceeding against him is pending before the Pune DRT. A new application for his insolvency is also to be filed. Under the IBC text, which is correct?
The new application must be filed before the NCLT dealing with Zenith's insolvency process, and the pending proceeding in the Pune DRT stands transferred to that NCLT. Section 179 jurisdiction of the DRT is subject to section 60, which governs personal guarantors of a corporate debtor in CIRP.
- ABoth the new application and the pending proceeding stay with the Pune DRT because he resides there
- BThe new application is filed before the NCLT dealing with Zenith's CIRP, and the pending proceeding stands transferred to that NCLTCorrect
- CThe new application is filed before the Pune DRT, but the pending proceeding moves to the NCLT
- DThe new application is filed before the DRAT, and the pending proceeding is abated
Explanation
Section 60(2) requires an application relating to insolvency, liquidation or bankruptcy of a corporate or personal guarantor of a corporate debtor under CIRP to be filed before the NCLT handling that process. Section 60(3) transfers proceedings pending in any court or tribunal to that NCLT. Section 179(1) is expressly subject to section 60, so residence in Pune does not decide the forum.
Did you get it right without looking?
One question tells you little. A timed set on Insolvency Resolution of Individuals and Partnership Firms shows your real accuracy, how long you take and where you lose marks.
More Insolvency Resolution of Individuals and Partnership Firms questions
- Kavita's fresh start application was filed on 5 June 2026. She has gross annual income of Rs 58,000, assets of Rs 12,000 and qualifying debt…
- Which of the following statements about the scope of Part III of the Code, as it applies to individuals and partnership firms, is correct?
- Ramesh Iyer, a sole proprietor, lives and runs his trading business in Coimbatore. Creditors wish to begin insolvency proceedings against hi…
- The Debt Recovery Tribunal at Pune passes an order against Meera Kulkarni, an individual debtor, under the IBC on 1 March. She files her app…
- Kiran Pharma, a sole proprietor, was granted a moratorium under Part III for 180 days. During this period, a suit that Kiran Pharma wished t…
- Rahul Mehta, an individual debtor in Pune, has been adjudged bankrupt by a bankruptcy order passed by the Debt Recovery Tribunal on 10 March…