MCQs On IBBI Rules and Regulation Part-2

Q.1:- The liquidator shall make a public announcement in ________of Schedule II within five days from his-appointment:

• Form C
• Form A
• Form D
• Form B

Q.2:- An insolvency professional becomes a liquidator on 13th February, 2017, and ceases to act as liquidator on 12th February, 2019. When he shall submit the audited accounts of his receipts and payments for the period April - 12th February, 2019:

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

Q.3:- What is NOT the duty of an IPA:

• Not to provide information about its activities to the Board.
• To ensure compliance with the Code and rules, regulations and guidelines issued there under governing the of insolvency professional agencies and insolvency professionals.
• To employ fair, reasonable, just, and non-discriminatory practices for the enrolment and regulation of its professional members.
• To be accountable to the Board in relation to all bye-laws and directions issued to its professional members.

Q.4:- How an IPA may initiate disciplinary proceedings:

• Based on monitoring of professional members;
• Following the directions given by the Board or any court of law or suo moto, based on any information received by it.
• Based on a reference made by the Grievances Redressal Committee of the IPA
• All the options are correct.

Q.5:- What is the term of a member of Advisory Committee:

• It shall not exceed three years.
• It shall not exceed four years.
• It shall not exceed one year.
• It shall not exceed two years.

Q.6:- A member of the Advisory Committee should not do following:

• A Member shall not take part in any deliberation or discussion of the Committee with respect to such business except to the extent of professional advice if sought by the Committee.
• No member of the Advisory Committee shall communicate to the Press or to any other public media on issues that have been considered or are under consideration of the Committee.
• A Member, who is directly or indirectly interested in any issue coming up for consideration at a meeting of the Committee, shall disclose the nature of his interest at such meeting.
• All of the above.

Q.7:- What shall be the probations period of an employee on initial appointment in the Grade:

• Two year
• One year
• Two and half year
• One and half year

Q.8:- When an employee shall be NOT be eligible for gratuity:

• Termination of service in any other way (except by way of punishment) after completion of five years of service
• Resignation after completing three years of continuous service19
• Retirement or death
• Disablement rendering him unfit for further service

Q.9:- The word ‘dependent” include: divorced/ abandoned or separated sisters and divorced/ abandoned or separated daughters, whose income from all sources ______________or such other amount, as may be decided by the Board from time to time:

• Doesn’t exceed Rs.10,000/- per month
• Doesn’t exceed Rs.5000/- per month
• Doesn’t exceed Rs.10,000/- per annum
• Doesn’t exceed Rs.5000/- per annum

Q.10:- In what discipline the Research Associate or Consultant may NOT be engaged:

• Business Management
• Finance and Accounts
• Law
• Economics/ Public Policy

Q.11:- What is effect of the order of approval by the adjudicating Authority under section 31(1):

• the moratorium order passed by the Adjudicating Authority shall begin.
• the moratorium order passed by the Adjudicating Authority shall continue.
• the moratorium order passed by the Adjudicating Authority shall cease to have effect
• the moratorium order passed by the Adjudicating Authority shall not cease to have effect.

Q.12:- How many Research Associates and Consultants may be engaged by the Board:

• The Executive Director of the Board shall decided.
• The Board may decide, from time to time, the number of the Research Associates and Consultants to be engaged.
• It is at the discretion of the Chairperson of the Board.
• Five Research Associates and Five

Q.13:- The Chairperson and a whole-time member shall be entitled to __________and the Board shall approve the type of accommodation, purchase price or rent of the house to be used for residence by the Chairperson or a whole-time member:

• Rent free furnished house.
• Concession rent furnished house
• Rent free unfurnished house.
• Concessional rent with unfurnished house.

Q.14:- Every part -time member shall hold office for such period, not exceeding , as may be specified in the order of his appointment, but shall be eligible for reappointment:

• Three years
• One year
• Four years
• Two years

Q.15:- What ae the terms and conditions of service of chairperson and members:

• He shall not accept any employment before the expiry of a period of one year from the date of demitting the office in the Board, except with the previous sanction of the central Government.
• He Shall not have any financial or other interests as are likely to affect prejudicially his functions as such chairperson or member.
• The Chairperson and whole-time member appointed to remainder period of the term of the chairperson or, as the case may be, whole time member in whose place he is appointed.
• All the options are correct.

Q.16:- At which rate the Chairperson, while on tour or on transfer(including the journey undertaken to join the Board or on the expiry of his term with the Board proceeds to his home town) shall be entitled to the travelling allowances, daily allowances, transportation of personal effects and other similar matters:

• At the same scale and at the same rate as are prescribed for a Group A officer of the Central Government of India.
• At the same scale and at the same rate as are prescribed for a Secretary to the Government of India.
• At the same scale and at the same rate as are prescribed for a Governor of State of India.
• At the same scale and at the same rate as are prescribed for a Minister to the Government of India.

Q.17:- A company eligible for registration as an insolvency professional agency, may make an application to the Board in Form A of the Schedule to these Regulations, along with a non-refundable application fee of

• Ten Lakh Rupees
• Twenty Lakh Rupees
• Five Lakh Rupees
• One Lakh Rupees

Q.18:- In the case of surrender of registration by an insolvency professional agency, the Board after considering the application and the objections submitted, if any, the Board may __________from the last date of submission of objections, approve the application for surrender of registration subject to such conditions as it deems fit:

• within thirty days
• within ten days
• within forty days
• within twenty days

Q.19:- The Board shall acknowledge an application made for Certificate of Registration under this Regulation _________, of its receipt:

• within five days
• within seven days
• within ten days
• within three days

Q.20:- An eligible person may make an application for recognition as an insolvency professional entity to the Board in _____ of the Second Schedule to these Regulations:

• Form C
• Form A
• Form D
• Form B

Q.21:- “class of creditors” means:

• A class with at least seven financial creditors under clause (b) of sub­ section (6A) of section 21 and the expression, “creditors in a class” shall be construed accordingly.
• A class with at least ten financial creditors under clause (b) of sub­ section (6A) of section 21 and the expression, “creditors in a class” shall be construed accordingly.
• A class with at least fifteen financial creditors under clause (b) of sub­ section (6A) of section 21 and the expression, “creditors in a class” shall be construed accordingly.
• A class with at least five financial creditors under clause (b) of sub­ section (6A) of section 21 and the expression, “creditors in a class” shall be construed accordingly.

Q.22:- How the public announcement should be made:

• on the website, if any, of the corporate debtor
• on the website, if any, designated by the Board for the purpose
• in one English and one regional language newspaper at the location of the registered office and principal office, if any, of the corporate debtor.
• All the options are correct.

Q.23:- In which form a person claiming to be a workman or an employee of the corporate debtor shall submit claim with proof to the interim resolution professional:

• Form B of the Schedule
• Form C of the Schedule
• Form D of the Schedule
• Form A of the Schedule

Q.24:- The interim resolution professional or the resolution professional, as the case may be, shall verify every claim, as on the insolvency commencement date, -X from the last date of the receipt of the claims, and thereupon maintain a list of creditors containing names of creditors along with the amount claimed by them, the amount of their claims admitted and the security interest, if any, in respect of such claims, and update it:

• Within ten days
• Within fifteen days
• Within three days
• Within seven days

Q.25:- What is NOT included in the Insolvency resolution process costs:

• Amounts due to a person whose rights are prejudicially affected on account of the moratorium imposed under section 14(1) (d).
• Expenses incurred on or by the resolution professional fixed under Regulation 34.
• Amounts due to suppliers of luxury goods and services.
• Expenses incurred on or by the interim resolution professional to the extent ratified under Regulation 33.

Q.26:- The fee of the liquidator is decided by :

• The Resolution Professional
• The Insolvency and Bankruptcy Board of India
• The Committee of Creditors before a liquidation order is passed under sections 33(l)(a) or 33(2).
• The Adjudicating Authority

Q.27:- To whom the liquidator may make an application for a direction when any officer, auditor, employee, promoter or partner of the corporate debtor or IRP, RP or previous liquidator has possession of any of the properties of the corporate debtor but do not cooperate with him for the conduct of the liquidation:

• The Board
• The Creditors
• The Adjudicating Authority
• The Central Government

Q.28:- Any time after the preparation of the Preliminary Report, if it appears to the liquidator that the realizable properties of the corporate debtor are insufficient to cover the cost of the liquidation process; and the affairs of the corporate debtor do not require any further investigation, then what recourse is available to him:

• He may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution.
• He may apply to the Central Government for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution.
• He may apply to the Board Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution.
• He may apply to the High Court for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution.

Q.29:- How the existence of a security interest may be proved by a secured creditor:

• Certificate of registration of charge issued by the Registrar of Companies
• Proof of registration of charge with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India.
• The records available in an information utility,
• All the options are correct.

Q.30:- How, a person may claim the rent, interest and such other payments of a periodical nature:

• It can be claimed for any amounts agreed to pay in advance, due and unpaid up to the liquidation commencement date.
• It can be claimed only for any amounts due and unpaid up to the date of appointment of the liquidator.
• It can be claimed only for any amounts due and unpaid up to the liquidation end date.
• It can be claimed only for any amounts due and unpaid up to the liquidation commencement date.

Q.31:- Mention the circumstances when the liquidator shall not sell the assets, without prior permission of the Adjudicating Authority, by way of private sale:

• When there is sale to any professional appointed by the liquidator
• When there is sale to a related party of the corporate debtor
• When there is sale to the related party of liquidator
• all the options are correct

Q.32:- How much amount the liquidator may keep in cash to meet liquidation costs:

• One lakh rupees or such higher amount as may be permitted by the Adjudicating Authority.
• Fifty thousand rupees
• Any amount to meet the liquidation cost without asking the Adjudicating Authority.
• One lakh rupees

Q.33:- What will be position when the liquidation process is not completed with a period of two years:

• The liquidator shall explaining why the liquidation has not been completed.
• The liquidator shall specify the additional time that shall be required for liquidation.
• The liquidator he shall make an application to the Adjudicating Authority to continue such liquidation
• All the options are correct.

Q.34:- In how many days a resolution relating to the passing of the amendment of Bye-laws passed, shall be filed with the Board for its approval.

• within ten days
• within seven days
• within three days
• within five days

Q.35:- How many directors in the governing Board of IPA should be independent directors at the time of their appointment, and at all times during their tenure as directors:

• More than half of the directors
• More than three fourth of the directors
• More than one fourth of the directors
• All the directors shall be independent directors

Q.36:- The rejection of the application by the IPA shall be communicated to the applicant stating the reasons for such rejection, of the receipt of the application, excluding the time given for removing the deficiencies or presenting additional documents or clarification by the Agency, as the case may be:

• within thirty days
• within ten days
• within forty days
• within twenty days

Q.37:- Who shall constitute the “Advisory Committee”:

• Advisory Committee shall be constituted by Central Government
• Advisory Committee shall be constituted by an order of the Board under section 197 of the Code.
• Advisory Committee shall be constituted by the Adjudicating Authority.
• Advisory Committee shall be constituted by the Central Government on the recommendation of the an order of the Board.

Q.38:- Who shall be the Chairperson of the Advisory Committee:

• One of the Professional Members of the Advisory Committee as its Chairperson.
• Any one from the General Members or Professional Members of the Advisory Committee as its Chairperson.
• One of the General Members of the Advisory Committee as its Chairperson
• None of the above.

Q.39:- The Board may have employees in the following Positions and Grades:—

• Personal Assistant (Grade-I, Grade-II and Grade-Ill).
• General Assistant (Grade-I, Grade- II and Grade-Ill).
• Officers (Grades A, B, C, D, E, F and Executive Director).
• All of the above.

Q.40:- When an employee, if he so desires, may give notice for retirement:

• Subject to terms of appointment to the contrary, if any, an employee May retire from service on completion of 50 years of age or 20 years of service in the Board, by giving three months’ notice to the Board in writing.
• Subject to terms of appointment to the contrary, if any, an employee may retire from service on completion of 45 years of age or 20 years of service in the Board, by giving three months’ notice to the Board in writing.
• Subject to terms of appointment to the contrary, if any, an employee may retire from service on completion of 52 years of age or 20 years of service in the Board, by giving three months’ notice to the Board in writing.
• Subject to terms of appointment to the contrary, if any, an employee may retire from service on completion of 48 years of age or 20 years of service in the Board, by giving three months’ notice to the Board in writing.

Q.41:- Which day will be treated as commencement of service where any new employee reports for duty in the………..:

• His service shall commence from the same day of joining, but half day leave will be marked.
• His service shall commence from the next following working day.
• His service shall commence from the same day of joining.
• His service shall commence from the same day of joining, but he will be treated junior if any other employee has joined before noon on the same day.

Q.42:- For selecting Research Associates and for each discipline and level, the Board shall constitute a selection committee comprising:

• Chairperson or Whole Time Member, Executive Director or a Senior Officer of the Board, if the position of Executive Director is vacant, and An External expert.
• Chief General Manager, Executive Director of the Board, and An External expert.
• Whole Time Member, Senior Officer of the Board, and An External expert.
• Chairperson Executive Director and an Internal expert.

Q.43:- What is the maximum consolidated monthly remuneration payable to the Research Associates for Level III:

• Rs.85,000/-
• Rs 1,00,000/-
• Rs.40,000/-
• Rs.60,000/-

Q.44:- What is the meaning of ‘dissenting financial creditors’?

• It means the financial creditors who voted against the resolution plan approved by the committee.
• It means the financial creditors who do not attend the meeting of the committee.
• It means the financial creditors who attend the meeting of the committee, but walks out when voting is done.
• None of the above.

Q.45:- Who shall bear the expenses of the public announcement:

• The Corporate Debtor
• The applicant shall bear the expenses of the public announcement which may be reimbursed by the committee to the extent it ratifies them.
• The Resolution Professional
• The Adjudicating Authority

Q.46:- Where there are dues to numerous workmen or employees of the corporate debtor, an authorized representative may submit one proof of claim for all such dues on their behalf in which Form.

• Form D
• Form B
• Form E
• Form C

Q.47:- Who will be the Chairperson of the meeting of the Committee of Creditors:

• The resolution professional
• The Corporate Debtor
• One of the creditor shall be the Chairperson
• Creditor having the highest amount of dues, shall be the Chairperson

Q.48:- Who shall fix the expenses to be incurred on or by the resolution professional:

• The Corporate Debtor
• The Adjudicating Authority
• The Committee of Creditors
• The Board

Q.49:- “Application Programming Interface” means:

• A mechanism that allows a system or service to access data or functionality provided by another system or service
• A Programming Language.
• A mechanism that do not allows a system or service to access data or functionality provided by another system or service
• A software through which it can analyse the NPA data.

Q.50:- Government Company, Stock Exchange, Depository, Bank, Insurance Company and Public Finance Institution may, directly or indirectly, either by themselves or together in concert, acquire or hold up to of the _____________paid-up equity share capital or total voting power of an information utility:

• Twenty per cent
• Twenty-five per cent
• Ten percent
• Fifteen per cent