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When can a bank initiate a corporate insolvency resolution process in relation to a corporate debtor?

On determination of default by National Company Law Tribunal.

Occurrence of default.

On net-worth of the debtor becoming negative.

On the bank classified the account as Non-Performing Asset.

Can an interim resolution professional act as the resolution professional?

No, as it involves conflict of interest.

Yes, if appointed by the committee of creditors with not less than 75% of the voting share of the creditors.

Yes, if appointed by the committee of creditors with votes of not less than 75% of the creditors.

Yes, if appointed at a meeting of the committee of creditors with a majority of the creditors present and voting.

Which one of the following is a pre-requisite for preparation of a resolution plan?

Formation of Committee of Creditors.

Valuation of liquidation estate by at least three registered valuers.

Vetting of default from at least one information utility.

Receipt of resolution plan(s) from financial creditors of the corporate debtor.

Under which of the following circumstances, liquidation may not commence under the Insolvency and Bankruptcy Code, 2016?

Non-receipt of a resolution plan during the insolvency resolution period.

The resolution plan approved by the adjudicating authority is contravened by a financial creditor.

The resolution plan approved by the adjudicating authority is contravened by the corporate debtor.

The committee of creditors decides to liquidate the corporate debtor before confirmation of a resolution plan.

The corporate debtor shall not be deemed to have given a preference if –

the transfer of property is for the benefit of a surety.

the transfer of property is on account of an antecedent financial debt.

the transfer creates a security interest in a property to the extent that such security interest secures new value.

the transfer has the effect of putting the transferee in a position better than what would have been in the event of distribution of assets under section 53.

Debts owed to a secured creditor in the event such secured creditor has relinquished security ranks equally with –

Insolvency resolution process costs.

Workmen’s dues for a period of 24 months prior to liquidation commencement date

Wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date

Dues to Central Government.

Which of the following is not a requirement of voluntary liquidation of a company under the Insolvency and Bankruptcy Code, 2016?

Declaration of solvency by the members of the company.

Declaration from majority of Directors of the company to the effect that the company has no debt or it will be able to pay its debts in full.

The company has not committed any default.

Declaration from majority of Directors of the company to the effect that the company is not being liquidated to defraud any person.

Under the code of conduct, an insolvency professional is not obliged to __________

take reasonable care and diligence while performing his duties.

comply with all requirements and terms and conditions of his admission to the insolvency professional entity.

comply with all requirements and terms and conditions of his admission to the insolvency professional agency.

submit a copy of the records of every proceeding before the Adjudicating Authority to the Insolvency and bankruptcy Board of India.

What is the minimum punishment that may be imposed on a director of the corporate debtor who has undertaken a transaction after the insolvency commencement date to defraud the creditors?

Imprisonment for three years or fine of Rs.1 lakh or both.

Imprisonment for one year or fine of Rs.1 lakh or both.

Imprisonment for three years or fine of Rs.5 lakh or both.

Imprisonment for three years or fine of Rs.1 lakh.

A financial creditor needs to file an application for initiation of corporate insolvency resolution process in __________ appended to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Form 2

Form 1

Form 3

Form 4

An operational creditor desirous of initiating a corporate insolvency resolution process needs to deliver to the corporate debtor a demand notice in __________ appended to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016?

Form 2

Form 3

Form 1

Form 6

A corporate applicant shall send a copy of the application in Form 6 appended to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 to the registered office of the Corporate debtor by __________

Speed post

Courier

E-mail

By hand

A corporate applicant is required to obtain a written communication in Form 2 appended to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 from the proposed interim resolution professional stating that he __________

agrees to accept the appointment.

refuses to accept the appointment.

agrees to accept the appointment subject to certain conditions.

agrees to accept the appointment jointly with another insolvency professional.

The public announcement regarding initiation of corporate insolvency resolution process may not be made __________

in newspapers.

on the website of the corporate debtor.

on the website designated by the Insolvency and Bankruptcy Board of India.

on the website of the Insolvency Professional Agency.

Which of the following cannot be used by a financial creditor to prove existence of a debt under corporate insolvency resolution process?

an order of a court or tribunal that has adjudicated upon the non-payment of a debt.

a contract for the supply of goods and services with corporate debtor.

a financial contract supported by financial statements as evidence of the debt.

the records available with an information utility.

Which of the following is true about sale of assets by a resolution professional during corporate insolvency resolution process?

The resolution professional can sell any asset with the approval of the committee of creditors.

The resolution professional can sell only unencumbered assets with the approval of the committee of creditors.

The resolution professional can sell unencumbered assets, not exceeding 10% of the claims admitted, with the approval of committee of creditors.

The resolution professional cannot sell any asset.

The Registered Valuers appointed by the Resolution Professional are required to estimate the liquidation value on the basis of __________

physical verification of assets of the corporate debtor.

records of the corporate debtor.

records of the information utilities.

records with Depositories.

A resolution applicant shall endeavor to submit the resolution plan __________

within 30 days before the expiry of the maximum period permitted for corporate insolvency resolution process.

within 30 days of the first meeting of committee of creditors.

by the time line set by the committee of creditors.

by the timeline set by the resolution professional.

In case the application for registration of an insolvency professional agency is having some defect, the Insolvency and Bankruptcy Board of India may:

reject the application.

give additional time to the applicant to remove such defects.

refer the application to National Company Law Tribunal.

Grant a provisional registration subject to correcting such defects.

The notice of receipt of an application for surrender of registration by an insolvency professional agency shall be published by the Insolvency and Bankruptcy Board of India on its website within __________ days of its receipt.

The appeal against an order of the Insolvency and Bankruptcy Board of India suspending the registration granted to an insolvency professional agency may be preferred to __________

National Company Law Tribunal

National Company Law Appellate Tribunal

High Court having jurisdiction

Supreme Court

The governing board of an insolvency professional agency may amend its bye-laws by a resolution passed by votes being not less than __________ times the number of votes, if any, cast against the resolution.

Which of these is not a mandatory committee to be formed by the governing board of an insolvency professional agency under the model bye-laws?

Risk management committee

advisory committee

grievance redressal committee

monitoring committee

In case of application for enrollment of a professional member has some deficiency, the insolvency professional agency may __________

reject the application and ask for fresh application.

give an opportunity to the applicant to remove the deficiency.

refer the application to the National Company Law Tribunal.

refer the application with its recommendation to the Insolvency and Bankruptcy Board of India.

Where a professional member has committed an offence involving moral turpitude, the disciplinary committee of the insolvency professional agency may __________

suspend the member.

expel the member.

Impose a monetary penalty.

refer the matter to the Insolvency and Bankruptcy Board of India.

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