MCQs On IBBI Rules and Regulation Part-1

Q.1:- What is the time limit when a creditor shall submit claim with proof:

• The date of submission of claim shall be decided by the creditors in their meeting.
• Creditor shall submit claim when asked by the Insolvency Professional personally.
• Creditor shall submit claim on or after the last date mentioned in the public announcement.
• Creditor shall submit claim on or before the last date mentioned in the public announcement.

Q.2:- What shall be the quorum of a meeting of the committee:

• If members of the committee representing at least thirty three percent of the voting rights are present either in person or by video conferencing or other audio and visual means.
• If members of the committee representing at least forty percent of the voting rights are present either in person or by video conferencing or other audio and visual means
• If members of the committee representing at least fifty percent of the voting rights are present either in person or by video conferencing or other audio and visual means
• If members of the committee representing at least thirty percent of the voting rights are present either in person or by video conferencing or other audio and visual means.

Q.3:- A resolution plan may contain the following:

• sale of all or part of the assets whether subject to any security interest or not
• amendment of the constitutional documents of the corporate debtor
• transfer of all or part of the assets of the corporate debtor to one or more persons
• All of the above

Q.4:- Who has to take intitiative for getting extension of the corporate insolvency resolution process period:

• The Adjudicating Authority
• The Committee of creditors
• The Corporate Debtor
• The Resolution Professional

Q.5:- A resolution plan shall identify specific sources of funds that will be used to pay the:

• liquidation value due to operational creditors and provide for such payment in priority to any financial creditor which shall in any event be made before the expiry of thirty days after the approval of a resolution plan by the Adjudicating Authority
• liquidation value due to dissenting financial creditors and provide that such payment is made before any recoveries are made by the financial creditors who voted in favour of the resolution plan.
• insolvency resolution process costs and provide that the insolvency resolution process costs will be paid in priority to any other creditor
• All of the above options as these are the mandatory contents of the resolution plan.

Q.6:- What is the time limit within which the liquidator shall prepare an asset memorandum in accordance with this Regulation:

• Within seventy-five days from the liquidation commencement date.
• Within one hundred days from the liquidation commencement date.
• Within twenty-five days from the liquidation commencement date.
• Within fifty days from the liquidation commencement date.

Q.7:- Who shall bear the cost of proving its claim:

• Adjudicating Authority
• Liquidator
• Claimant
• Corporate Debtor

Q.8:- An insolvency professional becomes a liquidator on 13th February, 2017, and ceases to act as liquidator on 12th February, 2019. What shall be the last date of submitting Progress Reports for the period January - 12th February, 2019:

• 15 March, 2019
• 15 May, 2019
• 27th February, 2019
• 15 April, 2019

Q.9:- A person shall be considered independent of the corporate debtor, if he:

• is not a related party of the corporate debtor
• has been an employee of a law firm of the corporate debtor contributing less than ten per cent of the gross turn over the firm
• is a related party of the corporate debtor
• has been an employee of the secretarial auditor of the corporate debtor

Q.10:- In how much time the liquidator shall submit a Preliminary Report to the Adjudicating Authority:

• Within seventy-five days from the liquidation commencement date.
• Within twenty-five days from the liquidation commencement date.
• Within one hundred days from the liquidation commencement date.
• Within fifty days from the liquidation commencement date.

Q.11:- How the claims denominated in foreign currency shall be valued in Indian currency:

• It shall be valued at the official exchange rate 14 as on the liquidation commencement date.
• It shall be valued at the official exchange rate as on the date when the liquidator is appointed.
• It shall be valued at the official exchange rate as on the liquidation end date.
• It shall be valued at the official exchange rate as on the liquidation commencement date.

Q.12:- Any money paid into the Companies Liquidation Account in pursuance of this Regulation, which remains unclaimed thereafter for a period of , shall be transferred to the general revenue account of the Central Government:

• Ten years
• Twenty years
• Five years
• Fifteen years

Q.13:- How many registered valuers be appointed to value the assets as required under Regulation 34(2):

• At least two Registered Valuers
• Only one Registered Valuer
• More than two Registered Valuers
• Only two Registered Valuer

Q.14:- Application for certificate of registration shall be submitted in which form:

• Form B
• Form D
• Form A
• Form C

Q.15:- In what circumstances, temporary surrender of professional membership can be made:

• takes up employment
• starts any business, except as permitted under the Code of Conduct
• becomes a person not resident in India
• All the options are correct.

Q.16:- Which one is correct:

• The Bye-laws framed by the Insolvency Professional Agency are need not be in consistent with the Model Bye-laws suggested by the IBBI.
• Insolvency Professional Agency to have its own Bye-Laws and that Bye- Laws shall at all times be consistent with the model bye-laws framed by the IBBI.
• Insolvency Professional Agency need not to have its own Bye-laws.
• Insolvency Professional Agency can adopt the Model Bye-Laws and need not to have its own.

Q.17:- Who is having the responsibility to manage human resources of the Board:

• Executive Director
• The Chairperson
• Chief General Manager
• Director

Q.18:- What is the maximum consolidated monthly remuneration payable to the Consultant for Level

• Rs. 85000/-
• Rs.135000/-
• Rs. 60000/-
• Rs. 110000/-

Q.19:- Research Associates or Consultants shall be:

• Part Time Employee of the Board
• On contractual basis for not less than six months and not more two years.
• Permanent Employee of the Board
• Temporary Employee of the Board

Q.20:- “Fast Track commencement date” means:

• The date of admission of an application by the Adjudicating Authority for initiating the fast track process under Chapter IV of Part II of the Code.
• The date of admission of an application by the Adjudicating Authority for initiating the fast track process under Chapter II of Part II of the Code.
• The date of admission of an application by the Adjudicating Authority for initiating the fast track process under Chapter V of Part II of the Code.
• The date of admission of an application by the Adjudicating Authority for initiating the fast track process under Chapter III of Part II of the Code.

Q.21:- An operational creditor, other than workman or employee of the corporate debtor, shall submit proof of his claim to the interim resolution professional in which Form.

• Form D
• Form C
• Form A
• Form B

Q.22:- Who shall fix the expenses 22 to be incurred on or by the interim resolution professional:

• The Corporate Debtor
• The Board
• The Applicant
• The Adjudicating Authority

Q.23:- How much per cent of its share capital, directly or indirectly, may be held by persons resident outside India:

• not more than 49%.
• not more than 29%.
• not more than 59%.
• not more than 39%.

Q.24:- An insolvency professional agency may submit an application for surrender of a certificate of registration to the Board and the Board shall _________of receipt of the application, publish a notice of receipt of such application on its website and invite objections to the surrender of registration, to be submitted _________. of the publication of the notice:

• within seven days/within fourteen days
• within ten days/within twenty days
• within fifteen days/within thirty days
• within three days/within six days

Q.25:- The Board may grant in-principle approval for registration as an insolvency professional agency, which shall be valid for a period and be subject to such conditions as it deems fit:

• not exceeding two years
• not exceeding three years
• not exceeding one year
• not exceeding six months

Q.26:- Who is eligible to be registered as an insolvency professional agency:

• Public Limited Company
• Company registered under section 8 of the Companies Act, 2013
• Limited Liability Partnership
• Private Limited Company

Q.27:- The order passed by the Board in the matter of disciplinary proceedings shall not become effective until ________ have elapsed from the date of issue of the order unless the Disciplinary Committee states otherwise in the order along with the reason for the same:

• Thirty days
• Ten days
• Forty days
• Twenty days

Q.28:- How much time before an insolvency professional agency who has been granted registration under Regulation 5, may make an application for renewal in Form A:

• Three months before the expiry of such registration.
• Nine months before the expiry of such registration
• One month before the expiry of such registration
• Six months before the expiry of such registration

Q.29:- Where the Board is of the prima facie opinion that the registration ought not be granted or renewed, or be granted or renewed with additional conditions, it shall communicate the reasons for forming such an opinion and give the applicant an opportunity to explain why its application should be accepted, of the receipt of the communication from the Board, to enable it to form a final opinion:

• Within ten days
• Within fifteen days
• Within twenty days
• Within five days

Q.30:- Which schedule contains the code of conduct of insolvency professionals:

• Second schedule
• Fourth schedule
• First schedule
• Third schedule

Q.31:- In the case of disciplinary proceedings, the Disciplinary Committee shall endeavour to dispose of the show-cause notice ________of the assignment:

• within a period of six months
• within a period of two months
• within a period of four months
• within a period of five months

Q.32:- What is the liability of an insolvency professional entity:

• Partners of directors inter-se are not liable for all acts or omissions.
• it shall be jointly and severally liable for all acts or omissions of its partners or directors as insolvency professionals committed during such partnership or directorship.
• Insolvency professional entity shall be liable for all acts or omission.
• Only the concerned partner or director is liable for all acts or omission.

Q.33:- The public announcement made by the interim resolution professional should provide the last date for submission of proofs of claim, which shall be _______________from the date of appointment of the interim resolution professional.

• Fourteen days
• Twenty eight days
• Seven days
• Twenty days

Q.34:- How the claims denominated in foreign currency shall be arrived at:

• It shall be valued in Indian currency at the broker’s exchange rate as on the insolvency commencement date.
• It shall be valued in Indian currency at the official exchange rate when such transactions were undertaken.
• It shall be valued in Indian currency at the official exchange rate as on the insolvency commencement date.
• It shall be valued in Indian currency at the official exchange rate as on the date of admission of the claim by the insolvency professional.

Q.35:- What is the notice period for calling of the meeting of creditors:

• Not less than five days
• Not less than three days
• Not less than fourteen days
• Not less than ten days

Q.36:- What is NOT termed as essential supplies:

• telecommunication services
• electricity
• information technology services
• Water meant for generation of hydro­ electricity.

Q.37:- The resolution professional shall endeavour to submit the resolution plan approved by the committee to the Adjudicating Authority I……… before the maximum period for completion of corporate insolvency resolution process:

• at least fifteen days
• at least five days
• at least twenty days
• at least ten days

Q.38:- Who will be the chairperson of the meeting of the committee:

• Corporate Debtor
• Creditor having the highest claim amount
• Resolution Professional
• One person to be chosen among the creditors

Q.39:- The interim resolution professional shall file a report certifying constitution of the committee to the Adjudicating Authority within ……….. of the verification of claims received:

• Three days
• Four days
• Two days
• One day

Q.40:- A resolution professional may convene a meeting of the committee as and when he considers necessary, and shall convene a meeting if a request to that effect is made by members of the committee representing of the voting rights:

• Thirty three per cent
• Thirty five per cent
• Thirty eight per cent
• Thirty per cent

Q.41:- A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including, of the corporate debtor:

• Only Operational creditors
• Financial creditors and operational creditors
• Only Financial creditors
• Other Creditors

Q.42:- How long the liquidator shall maintain the registers and books, in relation to the liquidation of the corporate debtor:

• Eight years after the dissolution of the corporate debtor
• Four years after the dissolution of the corporate debtor
• Ten years after the dissolution of the corporate debtor
• Six years after the dissolution of the corporate debtor

Q.43:- There is requirement of publishing the public announcement, which shall be published in one English and one regional language newspaper with wide circulation. As which location such publication be made:

• Any other location where in the opinion of the liquidator, the corporate debtor conducts material business operations.
• Where the majority of the creditors have their business offices
• Registered office and principal office of the corporate debtor
• Options A and C both are correct.

Q.44:- When a person, who claims to be a stakeholder, shall prove his claim for debt or dues to him, including interest, if any:

• As on the date of appointment of the Public Announcement
• As on the liquidation commencement date.
• As on the date of appointment of the Liquidator
• As on the last date of the public announcement.

Q.45:- Where there are dues to numerous workmen or employees of the corporate debtor, in which form an authorized representative may submit one proof of claim for all such dues on their behalf:

• Form F
• Form E
• Form D
• Form C

Q.46:- The liquidator shall verify the claims submitted within _________from the last date for receipt of claims and may either admit or reject the claim, in whole or in part, as the case may be:

• Thirty days
• Forty days
• Twenty days
• Ten days

Q.47:- In which bank the liquidator shall open a bank account:

• In co-operative bank
• In scheduled bank
• In Regional Rural Bank
• In non-scheduled bank

Q.48:- What is the time period of completion of liquidation:

• Within a period of four years.
• Within a period of three years.
• Within a period of two years.
• Within a period of one year.

Q.49:- The claims denominated in foreign currency shall be valued in Indian currency at the official exchange rate. Who determines the “The official exchange rate”:

• The FEDAl
• The EXIM Bank
• The SEBI
• The RBI

Q.50:- In which form a person claiming to be a financial creditor of the corporate debtor shall submit proof of claim to the liquidator:

• Form B
• Form D
• Form B
• Form C