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      Question

      Under Section 19(4), the Tribunal on receiving an

      application issues summons directing the defendant to show cause within how many days of service of summons?
      A 15 days Correct Answer Incorrect Answer
      B 21 days Correct Answer Incorrect Answer
      C 30 days Correct Answer Incorrect Answer
      D 45 days Correct Answer Incorrect Answer
      E 60 days Correct Answer Incorrect Answer

      Solution

      Section 19(4) as substituted by the 2016 Amendment provides that on receipt of the application, the Tribunal shall issue summons directing the defendant to: (i) show cause within thirty days of service of summons; (ii) disclose particulars of properties and assets; and (iii) restrain the defendant from dealing with or disposing of such assets pending hearing and disposal. The 30-day period is consistent with the same timeline for filing the written statement under Section 19(5). The summons also serves as an automatic interim restraint on asset disposal, a significant protective mechanism for the bank's recovery prospects.

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