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Sec 70(1)(c): a company can buy back even when a default subsists, if:
AThe default cannot be remedied
BDefault is below ₹1 lakh
CThe default has been remedied AND three years have elapsed since cessation
DDefault is approved by the Tribunal
Answer & Solution
Correct answer: C. The default has been remedied AND three years have elapsed since cessation
1. Step 1: Sec 70(1) proviso permits buy-back after remediation + 3 years from cessation of default.
2. Step 2: This is a "cooling period" provision.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 12 "Buy-Back of Securities"_