alleryStart learning →For section 7, a default may be a financial debt owed to which creditor?
AOnly the applicant
BOnly a lending bank
CAny financial creditor
DOnly the Government
Answer & Solution
Correct answer: C. Any financial creditor
The Explanation to section 7(1) widens default to debt owed to any financial creditor, not merely the applicant.
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Related questions
Which Code term means non-payment of debt that has become due and payable?The initiation date in section 5(11) is the day an application is what?How long is the insolvency resolution process period defined in section 5(14)?The insolvency commencement date is the date of what?The Centre may raise the minimum default under section 4 to at most how much?Besides the order, NCLT must issue what on liquidation under section 33(1)?A committee decision to liquidate under section 33(2) needs what share of voting?A plan's other legal approvals must be obtained within what time under section 31(4)?