Self Paced Course Completion Quiz: Basics of IBC Law

Choose the incorrect statement

IBC is a unified code that deals with all sets of creditors and debtors
The power of the Board of Directors is suspended at the start of the IRP under IBC
180 days timeline for resolution of insolvency process under the code
‘Debtors-in-possession’ approach leading to asset stripping and misappropriating of funds by existing management post default

Debt Recovery Tribunal has been created under IBC, 2016.

True
False

Swiss Ribbons Pvt. Ltd v Union of India [Writ Petition (Civil) No. 99 of 2018, decided on January 25, 2019 (SC)] dealt with the constitutional validity of Corporate insolvency. Which of the following was NOT held in this case?

The differentiation between priority to the financial creditor over Operation creditor has ‘intelligible differentia’
The powers of adjudication under the Code and regulations given to a resolution professional is not administrative power.
Section 53 of the Code does not violate Article 14 of the Constitution of India.
Code does not violate public policy

Section 238A of IBC deals with

Jurisdiction of NCLT, Debt Recovery Tribunals
IBC to override other laws
Applicability of Limitation Act
Trial of offences by Special Court

Jurisdiction of National Company Law Tribunal (NCLT) under IBC is NOT for

Partnership insolvency
Corporate insolvency
Limited liability partnership
Personal guarantees related to corporate debtors

Non-Obstante Clause has been discussed under which section of IBC?

Section 236
Section 237
Section 238
Section 239

Who can file for corporate insolvency resolution?

Financial creditor
Operational creditor
Corporate debtor
All of the above

Which of the following is NOT true regarding eligibility to be appointed as a resolution professional/liquidator?

He is eligible to be appointed as an Independent Director on the Board of the company under section 149 of the Companies Act, 2013
He should be on the Board of directors of at least 1 company
He is not an employee or proprietor or a partner of a firm of auditors or company secretaries in practice or cost auditors of the corporate debtor in the last three financial years
He is not a related party of the corporate debtor

Choose the incorrect statement

IRP appointment has to be ratified by the CoC in its first meeting
IRP’s appointment needs to be approved by the majority of creditors at the creditors' committee
IRP can not be replaced with a majority of creditors with the permission of the IBBI
IRP fees will be decided by the creditors' committee

Who has the voting rights in the Committee of Creditors?

Operational Creditors
Financial Creditors
Related party creditors
Corporate Debtors

What triggers the liquidation process?

A. The resolution plan does not meet the minimum guidelines

B. Non-agreement by Creditors’ committee within the stipulated period

C. The decision of the Creditors’ committee for liquidation

D. Corporate debtor fails to adhere to the terms of the approved resolution plan

Which of the above are true?

All of the Above
A and C
A, B, C
None of the above

The liquidation order is reversible.

True
False

Self Paced Course Completion Quiz: Basics of IBC Law

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Self Paced Course Completion Quiz: Basics of IBC Law

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Aaditya Kashyap, Career Counsellor