MCQs on The Recovery of Debts and Bankruptcy Act, 1993 Part 2

Q.1:- Debts includes any liability towards debt securities which remains unpaid in full or part after notice of ...............served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities.

• One Hundred Eighty days
• Ninety days
• Sixty days
• Thirty days

Q.2:- The Presiding Officer of a Tribunal shall hold office for a term of from the date on which he enters upon his office and shall be eligible for reappointment.

• Seven years
• Five years
• Three years
• One year

Q.3:- No person shall hold office as the Presiding Officer of a Tribunal after he has attained the age o:

• Sixty-five years
• Sixty two years
• Sixty years
• Fifty Eight years

Q.4:- Appellate Tribunal (DRAT) shall consist of one person only (referred to as the Chairperson of the Appellate Tribunal) to be appointed, by notification, by:

• The State Government
• The Central Government
• The High Court
• The Supreme Court

Q.5:- The Chairperson of an Appellate Tribunal shall hold office for a term of from the date on which he enters upon his office and shall be eligible for reappointment.

• Seven years
• Five years
• Three years
• One year

Q.6:- No person shall hold office as the Chairperson of a Appellate Tribunal after he has attained the age of:

• Seventy five years
• Seventy years
• Sixty five years
• Sixty years

Q.7:- On receipt of application under section 19 (1) or (2), the Tribunal shall issue summons directing the defendant to show cause...............of the service of summons as to why relief prayed for should not be granted:

• Within forty days
• Within thirty days
• Within twenty days
• Within ten days

Q.8:- Any recovery certificate issued by the Presiding Officer under section 19(22) shall be deemed to be:

• Decree or order of the Court for the purposes of initiation of winding up proceedings against a company registered under the Companies Act, 2013.
• Insolvency proceedings against any individual or partnership
• Decree or order of the Court for the purposes of initiation of winding up proceedings against a Limited Liability Partnership registered under the Limited Liability Partnership Act, 2008
• All of the above.

Q.9:- The word ‘property’ means:

• Intangible assets
• Movable or Immovable property
• Any debt or any right to receive payment of money, whether secured or unsecured; Receivables, whether existing or future;
• All of the above.

Q.10:- A DRT shall consist of one person only (hereinafter referred to as the Presiding Officer) which will be appointed by notification:

• By the Supreme Court
• By the State Government
• By the Central Government
• By the High Court

Q.11:- The Central Government shall provide the Tribunal with and such other officers and employees as that Government may think fit.

• One or more Recovery Officers
• Three Recovery Officers
• Two Recovery Officers
• One Recovery Officer

Q.12:- A person shall not be qualified for appointment as the Chairperson of an Appellate Tribunal unless he:

• has been a member of the Indian Legal Service and has held a post in Grade I of that Service for at least three years
• has held office as the Presiding Officer of a Tribunal for at least three years.
• is, or has been, or is qualified to be, a Judge of a High Court
• All of the options mentioned above are correct.

Q.13:- For the purpose of exercise of general powers of superintendence and control over Tribunals, the Chairperson may direct the Tribunals to furnish information relating to pending cases, number of cases disposed of, number of new cases filed and such other information as may be considered necessary by the Chairperson:

• Convene meetings of the Presiding Officers of Tribunals periodically to review their performance.
• The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or any other law for the time being in force.
• The Recovery of Debts and Bankruptcy Act, 1993.
• All of the above.

Q.14:- The application made to the Tribunal under section 19(1) or (2) shall be dealt with by it as expeditiously as possible and every effort shall be made by it to complete the proceedings in two hearings, and to dispose of the application finally from the date of receipt of the application.

• Within three hundred and sixty days
• Within two hundred and seventy days
• Within one hundred and eighty days
• Within ninety days

Q.15:- In how many days the defendant shall present a written statement of his defence including claim for set-off or a counter• claim if any:

• within a period of forty days from the date of service of summons.
• within a period of thirty days from the date of service of summons.
• within a period of twenty days from the date of service of summons.
• within a period of ten days from the date of service of summon.

Q.16:- If any application filed before the Tribunal for recovery of any debt is settled prior to the commencement of the hearing before that Tribunal or at any stage of the proceedings before the final order is passed, the applicant may be:

• The fee may be refunded at the discretion of the Tribunal.
• The pro rata fees may be refunded.
• There is no provision of refund of fees once paid.
• Granted refund of the fees paid by him.

Q.17:- What recourse is available to the multi State co-operative bank for recovery of debts:

• The Multi State Co-op Banks may opt any of the options mentioned at A and B above.
• It may make an application before the Tribunal under Chapter IV of the RDB Act, 1993.
• It may initiate proceedings under the Multi-State Co-operative Societies Act, 2002 to recover debts, whether due before or after the date of commencement of the Enforcement of the Security Interest and Recovery’ of Debts Laws (Amendment) Act, 2012.
• None of the above.

Q.18:- Where a bank or a financial institution has to recover any debt from any person, it may make an application to the Tribunal within the local limits of whose jurisdiction:

• Any of the defendants where there are more than one, at the time of making the application, actually and voluntarily resides, or carries on business, or personally works for gain; or the cause of action, wholly or in part, arises.
• The branch or any other office of the bank or financial institution is maintaining an account in which debt claimed is outstanding, for the time being.
• The defendant, or each of the defendants where there are more than one, at the time of making the application, actually and voluntarily resides, or carries on business, or personally works for gain.
• All of the above.

Q.19:- Where on assessment of the performance of any Presiding Officer of the Tribunal or otherwise, the Chairperson is of the opinion that an inquiry is required to be initiated against such Presiding Officer for misbehaviour or incapacity, he shall submit a report to recommending action against such Presiding Officer, if any, under section 15, and for reasons to be recorded in writing for the same:

• The State Government
• The Judge of Supreme Court
• The Central Government
• The Judge of High Court

Q.20:- What are the jurisdiction, powers and authority of the Tribunal:

• The Tribunal shall have circuit sittings in all district headquarters.
• To entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions.
• The jurisdiction, powers and authority to entertain and decide applications under Part III of Insolvency and Bankruptcy Code, 2016.
• All of the above.

Q.21:- The Chairperson of an Appellate Tribunal shall exercise:

• General power of superintendence
• The power of appraising the work and recording the annual confidential reports of Presiding Officers.
• Control over the Tribunals under his jurisdiction
• All of the above.

Q.22:- What are the jurisdiction, powers and authority of the Appellate Tribunal:

• To entertain appeals against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016.
• To entertain appeals against any order made, or deemed to have been made, by a Tribunal under this Act.
• Only A and B are correct.
• None of the above.

Q.23:- A person shall not be qualified for appointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be:

• A Supreme Court Judge
• A High Court Judge
• A District Judge
• A Session Judge

Q.24:- A Debt Recovery Tribunal (DRT) shall consist of:

• Four persons
• Three persons
• Two persons
• One person.