Qus 1 : Company ABC entered into an arrangement with Bank XYZ wherein the Bank XYZ agreed to extend a credit facility with a maximum limit of INR 20,00,000/- to Company ABC. Under the arrangement, the Company ABC may draw bills of exchange on the bank as and when required throughout the term of the agreement, provided it does not exceed the maximum limit of the facility. Such bills are then sold on the discount market, and on maturity the Company ABC would reimburse the bank the full value of the bill, and the Bank XYZ would pay the holder of the bill. Identify the kind of transaction that is described above.
Sale of invoice on non-recourse basis
Acceptance Credit Facility
Indemnity
Corporate Guarantee
Qus 2 : During the pre-packaged insolvency resolution process period, the committee of creditors may by a vote of not less than _______ per cent of the voting share, resolve to vest the management of the corporate debtor with the resolution professional, and the resolution professional shall make an application to the NCLT for the same.
66
50
75
90
Qus 3 : Who amongst the following is not a related party under section 5(24) of the Insolvency and Bankruptcy Code, 2016?
Relative of a director of the corporate debtor
An LLP that provides legal services on the instructions of the director of a corporate debtor
A partnership firm in which the relative of the director of the corporate debtor is a partner
Relative of the director of a creditor of a corporate debtor
Qus 4 : Is there a period that the Operational Creditor (OC) must wait before filing an application before the NCLT to initiate CIRP against a Corporate Debtor?
Yes, the OC must wait for 15 days after delivery of notice or invoice demanding payment of the unpaid amount by Corporate Debtor under section 8 of the IBC, 2016
Yes, the OC must wait for 60 days after delivery of notice or invoice demanding payment of the unpaid amount by Corporate Debtor under section 8 of the IBC, 2016
Yes, the OC must wait for 10 days after delivery of notice or invoice demanding payment of the unpaid amount by Corporate Debtor under section 8 of the IBC, 2016
No, the OC need not wait for any period prior to filing an application before the NCLT to initiate CIRP against a Corporate Debtor.
Qus 5 : Bank A and Bank B have given INR 5 crores and INR 7 crores, respectively, as secured loans with pari passu charge on the office premises worth INR 10 crores to the Corporate Debtor XYZ. The son of the promoter of XYZ had given loans amounting to INR 0.75 crores to XYZ 2 months prior to the initiation of CIRP of the Corporate Debtor XYZ to meet the expenses of the company. The Corporate Debtor owes 0.43 crores in unpaid dues to workmen and 0.3 crores in unpaid statutory employer contributions. Assuming the insolvency resolution process failed, and the sum available from the liquidation process is INR 8.49 crores. Based on the priority of claims, Bank A would receive:
INR 3.33 crore
INR 3.23 crore
INR 4.53 crore
INR 3.53 crore
Qus 6 : What is the tenure of the interim resolution professional in a CIRP, where the interim resolution professional has not been appointed as the resolution professional by the committee of creditors?
For 47 days after the commencement of the insolvency resolution process
Until the time the NCLT confirms the appointment of the resolution professional after receiving the confirmation from the IBBI
For 7 days after the commencement of the insolvency resolution process
For the duration of the insolvency resolution process
Qus 7 : When does the Corporate Insolvency Resolution Process (CIRP) commence under the IBC, 2016?
When the defaults of a Corporate Debtor amount to the minimum limit prescribed under Section 4 of the IBC, 2016;
When the Adjudicating Authority admits an application made under section 7, 9 or 10 of the IBC, 2016.
When the Resolution Professional is appointed under section 22 of the IBC, 2016
Upon constitution of the Committee of Creditors of the Corporate Debtor;
Qus 8 : A resolution professional shall file an application to the adjudicating authority to extend the period of fast track resolution beyond 90 days if instructed to do so by a resolution passed by a majority of not less than ______ per cent of the voting share of the financial creditors at a meeting of the committee of creditors.
Qus 9 : The NCLT may allow the withdrawal of an application under _______ on an application made by the applicant with the approval of _________ per cent of the voting share of the committee of creditors.
Section 7; 75
Section 10; 90
Section 7 or section 9 or section 10; 90
Section 7 or section 9; 66
Qus 10 : What is the minimum amount a corporate debtor must default on for a financial creditor to initiate an insolvency resolution process against the corporate debtor?
1 lakh
100 lakhs
10 lakhs
50 lakhs
