New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    The Adjudicating Authority shall, ________________

    ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor
    A On the recommendation of the Board Correct Answer Incorrect Answer
    B Within seven days of the receipt of the application Correct Answer Incorrect Answer
    C Within fourteen days of the receipt of the application Correct Answer Incorrect Answer
    D Within fourteen days of the admission of the application Correct Answer Incorrect Answer

    Solution

    IBC Section 7-Initiation of corporate insolvency resolution process by financial creditor: (4) The Adjudicating Authority shall, within fourteen days of the receipt of the application, ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor. Provided that if the Adjudicating Authority has not ascertained the existence of default and passed an order within such time, it shall record its reasons in writing for the same.

    Practice Next