The Insolvency and Bankruptcy Code, 2016 – Test 2

Related party in relation to a corporate debtor as per Sec.5(24) of IBC, 2016 means a private company in which a director, partner or manager of the corporate debtor is a director and holds along with his relatives, more than _________ of its share capital.

Related Party in relation to an individual as per Sec. 5(24A) of IBC, 2016 means a company, where the individual or the individual along with its related party, own more than _______ of the share capital of the company or controls the appointment of the board of directors of the company.

Resolution Plan as per Sec. 5(14) of IBC, 2016 means a plan _______.

Provisions relating to the insolvency and liquidation of corporate debtors shall be applicable only when the amount of the default is _______ or more. However, C.G. may, by notification, specify the minimum amount of default of higher value which shall not be more than __________.

Who amongst the following cannot initiate a Corporate Insolvency Resolution Process?

Who amongst the following can initiate a Corporate Insolvency Resolution Process?

1. Financial creditor
2. Corporate debtor
3. Operational creditor

Choose the correct one.

As per Sec. 7 of IBC, 2016, a financial creditor either by itself or jointly with other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government may file an application for initiating CIRP against a corporate debtor before the Adjudicating Authority when a default has occurred. The Adjudicating Authority shall be _________.

As per Sec. 7 of IBC, 2016, a financial creditor either by itself or jointly with other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government may file an application for initiating CIRP against a corporate debtor before the Adjudicating Authority when a default has occurred. The Adjudicating Authority shall, within _________ of the receipt of the application, ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor.

Adjudicating Authority if, satisfied that a default has occurred and complying with other requirements of the section 7 of IBC, 2016, it may, by order, admit such application; or if, default has not occurred, it may, by order, reject such application. Provided that the Adjudicating Authority shall, before rejecting the application, give a notice to the applicant to rectify the defect in his application within _______ of receipt of such notice from the Adjudicating Authority.

The corporate insolvency resolution process shall commence from ___________.

The Adjudicating Authority shall communicate the order of admission of application of CIRP u/s 7 of IBC, 2016 to _________.

1. Corporate Debtor
2. Financial Creditor
3. Interim Resolution Professional

Choose the correct one:

As per Sec 8 of IBC, 2016, an operational creditor may, on the occurrence of a default, deliver a demand notice or copy of an invoice demanding payment of the amount involved in the default to ______ in such form and manner as may be prescribed.

For the purpose of Sec. 8 of IBC, 2016, 2016 a “demand notice” means a notice served by an operational creditor to the corporate debtor demanding payment of ____________.

As per Sec 8 of IBC, 2016, an operational creditor may, on the occurrence of a default, deliver a demand notice or copy of an invoice demanding payment of the amount involved in the default to unpaid operational debtor in such form and manner as may be prescribed.

The corporate debtor shall, within a period of 10 days of the receipt of the demand notice or copy of the invoice bring to the notice of the operation creditor:

As per Sec. 9 of IBC, 2016, after the expiry of the period of _________ from the date of delivery of the notice or invoice demanding payment u/s 8, if the operational creditor does not receive payment from the corporate debtor or notice of the dispute u/s 8, the operational creditor may file an application before the _________ for initiating a CRIP.

The operational creditor may file an application before the Adjudicating Authority for instating a CIRP under IBC, 2016. The Adjudicating Authority shall, within ______ of the receipt of the application, by an order admit or reject the application and communicate such decision to the __________.

The operational creditor may file an application before the Adjudicating Authority for initiating a CIRP under IBC, 2016. The Adjudicating Authority shall by an order admit the application if:

1. The invoice or notice for payment to the corporate debtor has been delivered by the operational creditor.
2.  No notice of dispute has been received by the operational creditor or there is no record of dispute in the information utility.
3. There is no disciplinary proceeding pending against any Resolution Professional (RP) proposed, if any.

Choose the correct one.

A corporate insolvency resolution process commences on the date of ______.

Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating CIRP with the Adjudicating Authority under IBC, 2016. The corporate applicant shall, along with the application, furnish
________ passed by shareholders of the corporate debtor or the resolution passed by at least _________ of the total number of partners of the corporate debtor, as the case may be, approving filing of the application.

Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating CIRP with the Adjudicating Authority under IBC, 2016. The Adjudicating Authority shall, within a period of ________ of the receipt of the application, by an order admit or reject the application.

1. A corporate debtor undergoing a corporate insolvency resolution process shall not be entitled to make an application to initiate CIRP.
2. A corporate debtor in respect of whom a liquidation order has been made shall not be entitled to make an application to initiate CIRP.

Which of the above statement is correct?

A corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved ________ before the date of making of an application shall not be entitled to make an application to initiate CIRP under IBC, 2016.

Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating period of ________ from the  date of ______ to initiate such process.

As per Sec 12 of IBC, 2016, the resolution professional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency resolution process beyond ________, if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of ________ of the voting shares.

In a Fast Track Insolvency Resolution Process, the Adjudicating Authority may extend the duration of such process not exceeding _________.

A resolution professional shall file an application to the adjudicating authority to extend the period of fast track resolution if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of not less than _____ percent of the voting shares.

A resolution professional does not require approval of the committee of creditors for ________.

As per IBBI (CIRP) Regulations, 2016, who can make a request to convince a meeting of the committee of creditors?

Who shall not have any right to vote in the meetings of creditors u/s 24 of IBC, 2016?

When will the first meeting of the committee of creditors be held?