Insolvency application admission rules tightened with fixed timelines, defect cure notice, and limited grounds for rejection. Amends section 7 of the Insolvency and Bankruptcy Code by omitting the proviso to sub-section (4) and substituting a new sub-section (5) governing admission or rejection of applications by the Adjudicating Authority. The new provision requires decision within fourteen days, permits rejection only for specified grounds, and requires notice to cure defects before rejection. It also records the delay in writing if no order is passed within fourteen days, bars rejection on any ground other than those specified once admission requirements are met, and treats an information utility record of default as sufficient to ascertain default.
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Insolvency application admission rules tightened with fixed timelines, defect cure notice, and limited grounds for rejection.
Amends section 7 of the Insolvency and Bankruptcy Code by omitting the proviso to sub-section (4) and substituting a new sub-section (5) governing admission or rejection of applications by the Adjudicating Authority. The new provision requires decision within fourteen days, permits rejection only for specified grounds, and requires notice to cure defects before rejection. It also records the delay in writing if no order is passed within fourteen days, bars rejection on any ground other than those specified once admission requirements are met, and treats an information utility record of default as sufficient to ascertain default.
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