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?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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