MCQs On IBBI Rules and Regulation Part-4

Q.1:- The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 shall apply to matters relating to the:

• partnership Firm Insolvency Resolution Process
• Corporate Insolvency Resolution Process
• Individual Insolvency Resolution Process
• All of the above

Q.2:- What is quantum of entertainment allowance, Chairperson and a whole-time member shall be entitled to:

• Entertainment allowance subject to a maximum of Rs. 6,000 per annum
• Entertainment allowance subject to a minimum of Rs. 6,000 per annum.
• Entertainment allowance subject to a maximum of Rs. 6,000 per month.
• Entertainment allowance subject to a minimum of Rs. 6,000 per month.

Q.3:- The Chairperson shall be entitled to Leave Travel Concession at the same rates and at the same scales as are applicable to:

• A Secretary to the Government of India.
• A Minister to the State Government of India.
• A Secretary to the State Government of India.
• A Minister to the Government of India.

Q.4:- A part-time member shall be entitled to receive remuneration by way of a fee of for each meeting of the Board attended by him:

• Rupees ten thousand only
• Rupees five thousand only
• Rupees one thousand only
• Rupees three thousand only

Q.5:- What should be the share capital criteria for registration as an insolvency professional agency:

• Paid-up share capital of five crore rupees
• Authorised share capital of five crore rupees
• Nominal capital of five crore rupees
• Subscribed share capital of five crore rupees .

Q.6:- Where a person applies for registration or renewal thereof, the Board shall acknowledge such application made under this Regulation of its receipt:

• Within seven days
• Within three days
• Within nine days
• Within five days

Q.7:- What is the amount of fee to for registration with the Board:

• Rs. 5000 plus GST
• Rs. 10000 plus GST
• Rs. 5000.
• Rs. 10000.

Q.8:- The registration shall be subject to the conditions that the insolvency professional shall pay a fee of ten thousand rupees to the Board, after the year in which the certificate is granted:

• every seven years
• every one year
• every three years
• every five years

Q.9:- A certificate of recognition as an insolvency professional entity in shall be issued by the Board in __________of the Second Schedule to these Regulations:

• Form D
• Form C
• Form B
• Form A

Q.10:- What is the meaning of “registered valuer”:

• It means who is registered under the Income Tax Act, 1961.
• It means a person registered as such in accordance with the Companies Act, 2013(18 of 2013) and rules made thereunder.
• It means a person who is a member of the Institution of Valuers.
• It means a person who do the work of the valuation of assets.

Q.11:- What is the meaning of “corporate insolvency resolution process”:

• It means the insolvency resolution process for corporate persons before the High Court.
• It means the insolvency resolution process for corporate persons under Chapter II of Part II of the Code.
• It means the winding up process under the Companies Act, 2013.
• It means the insolvency resolution process for corporate persons.

Q.12:- Which form is to be used for making the public announcement:

• Form B
• Form D
• Form A
• Form C

Q.13:- The interim resolution professional may access the books of account, records and other relevant documents and information, to the extent relevant for discharging his duties under the Code, of the corporate debtor held with:

• professional advisors of the corporate debtor
• information utilities
• depositories of securities
• all of the above

Q.14:- Who shall bear the cost of proving the debt due to such creditor:

• Corporate Debtor
• Adjudicating Authority
• Insolvency Professional
• Creditor

Q.15:- The interim resolution professional shall within ………….. of his appointment, but not later than forty­ seventh day from the insolvency commencement date appoint two registered valuers to determine the liquidation value of the corporate debtor in accordance with Regulation 35:

• Ten days
• Fourteen days
• Seven days
• Five days

Q.16:- The liquidator shall prepare and submit a progress report to:

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

Q.17:- The public announcement shall call upon stakeholders to submit their claims as on the liquidation commencement date and provide the last date for submission of claim, which shall be _________from the liquidation commencement date:

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

Q.18:- In which form a person claiming to be an operational creditor of the corporate debtor, other than a workman or employee, shall submit proof of claim to the liquidator:

• Form C
• Form A
• Form D
• Form B

Q.19:- If a claim is found to be false, the liquidator shall endeavor to recover the costs incurred for verification and determination of claim from:

• The Corporate Debtor
• The Resolution Professional
• The Claimant
• None of the above

Q.20:- When the liquidator can make sale of assets though the private sale instead of auction sale:

• When the asset is of perishable nature or the asset is likely to deteriorate in value significantly if not sold immediately
• The asset is sold at a price higher than the reserve price of a failed auction
• The prior permission of the Adjudicating Authority has been obtained for such sale.
• All the options are correct.

Q.21:- In which name and style, the liquidator shall open a bank account for the receipt of all moneys due to the corporate debtor:

• In the name of the corporate debtor followed by the name of the adjudicating authority.
• In the name of the corporate debtor followed by the words ‘dissolved’
• In the name of the corporate debtors followed by the name of liquidator.
• In the name of the corporate debtor followed by the words ‘in liquidation’

Q.22:- When the liquidator shall distribute the proceeds from realization to the stakeholders:

• within three months from the receipt of the amount
• within six months from the receipt of the amount
• within eight months from the receipt of the amount
• within one month from the receipt of the amount

Q.23:- When the amendments to the bye-laws shall come into effect:

• On the seventh day of the receipt of the approval, unless otherwise specified by the Board.
• On the tenth day of the receipt of the approval, unless otherwise specified by the Board.
• On the third day of the receipt of the approval, unless otherwise specified by the Board.
• On the fifth day of the receipt of the approval, unless otherwise specified by the Board.

Q.24:- Which of the following is/are the Committee of IPA:

• Disciplinary Committee
• Grievance Redressal Committee
• Monitoring Committee
• All of the above.

Q.25:- The Monitoring Policy of IPA shall NOT provide for the following:

• the obligations of professional members to comply with the Monitoring Policy
• finalisation of accounts of the IPA
• the frequency of monitoring
• the manner and format of submission or collection of information and records of the professional members, including by way of inspection

Q.26:- What shall be ratio between the Professional Members and General Members:

• It shall roughly be in the ratio of 1:2 respectively.
• It shall roughly be in the ratio of 1:1 respectively.
• It shall roughly be in the ratio of 1:3 respectively.
• It shall roughly be in the ratio of 2:1 respectively.

Q.27:- A Member of the Advisory Committee shall be entitled to a sitting fee off or a meeting of the Committee:

• Rs.10000
• Rs 1000
• Rs. 15000
• Rs. 5000

Q.28:- On what ground the resignation of the employee may be refused:

• If he is under an obligation to serve the Board for a certain period which has not yet expired
• If he owes the Board any sums of money
• If any disciplinary proceeding is pending or is proposed to be instituted against him
• All of the above.

Q.29:- The performance of each Research Associate and Consultant shall be reviewed____________ with reference to tasks assigned and output delivered:

• Every six months
• Every three months
• Every twelve months
• Every nine months

Q.30:- The engagement of a Research Associate or a Consultant may be discontinued by giving _________in lieu of the notice, to the other party:

• Two months’ notice or Two month’s salary
• Four months’ notice or Four month’s salary
• One months’ notice or One month’s salary
• Three months’ notice or Three month’s

Q.31:- An insolvency professional shall be eligible to be appointed as a resolution professional for a fast track process of a corporate debtor if he, and all partners and directors of the insolvency professional entity of which he is a partner or director, are___________ of the corporate debtor.

• Part time Employee
• Full time Employee
• Independent
• Dependent

Q.32:- Committee with only operational creditors can be formed consisting of:

• one representative elected by all workmen
• one representative elected by all employees
• eighteen largest operational creditors by value
• all of the above

Q.33:- The interim resolution professional shall of his appointment, appoint one registered valuer to determine the liquidation value of the corporate debtor in accordance with Regulation 34:

• after seven days
• after fourteen days
• within seven days
• within fourteen days

Q.34:- “host bank” means:

• The bank which provides the funds to the corporate debtors for revival of the unit.
• The financial institution hosting the repayment account
• The bank which is playing a passive role in the insolvency proceedings.
• None of the above.

Q.35:- Notwithstanding anything to the contrary contained in Regulation 8 (1), a person may, directly or indirectly, either by itself or together with persons acting in concert, hold up to fifty-one percent of the paid-up equity share capital or total voting power of an up to three years from the date of its registration:

• a public limited company engaged in providing financial services
• a company registered under section 8 of the Companies Act, 2013
• an information utility
• an Asset Reconstruction Company

Q.36:- On what matters the Board may lay down Technical Standards:

• registration of users
• authentication and verification of information
• standard terms of service
• all of the above

Q.37:- An information utility shall allow the following persons to access information stored with it:

• The insolvency professional, to the extent provided in the Code;
• The Adjudicating Authority and the Board
• the user which has submitted the information and all the parties to the debt and the host bank
• All the options are correct.

Q.38:- After considering the application and the objections received, if any, the IBBI may,__________ from the last date for submission of objections, approve the application for surrender of registration subject to such conditions as it deems fit:

• within sixty days
• within fifteen days
• within thirty days
• within forty days

Q.39:- What is the constitution of the Technical Committee:

• It shall comprise of at least three members who have special knowledge and experience in the field of law, finance, economics, information technology or data management.
• It shall comprise of at least five members who have special knowledge and experience in the field of law, finance, economics, information technology or data management.
• It shall comprise of at least two members who have special knowledge and experience in the field of law, finance, economics, information technology or data management.
• It shall comprise of at least four members who have special knowledge and experience in the field of law, finance, economics, information technology or data management.

Q.40:- Who shall inspect an information utility with such periodicity as may be considered necessary:

• The Comptroller and Auditor General of India
• The Central Government
• The Adjudicating Authority
• The Board

Q.41:- What is the purpose of inspection by the Board:

• To ascertain whether any circumstance exists which would render a service provider unfit or ineligible
• To ensure that the records are being maintained by a service provider in the manner required under the relevant regulations
• To ascertain whether adequate internal control systems, procedures and safeguards have been established and are being followed by a service provider to fulfill its obligations under the relevant regulations
• All the options are correct.

Q.42:- What are the contents of the Preliminary Report:

• The estimates of its assets and liabilities
• The capital structure of the corporate person
• Both the options of A and B are correct
• None of the above

Q.43:- In which Form, claims by other stakeholders shall be submitted:

• Form E
• Form C
• Form F
• Form D

Q.44:- On completion of the liquidation process, the liquidator shall prepare the Final Report consisting of among others, a statement demonstrating:

• The debt of the corporate person has been discharged to the satisfaction of the creditors
• No litigation is pending against the corporate person or sufficient provision has been made to meet the obligations arising from any pending litigation
• He assets of the corporate person has been disposed of
• All of the above

Q.45:- What a grievance shall state:

• details of the conduct of the service provider that has caused the suffering to the aggrieved
• details of suffering, whether pecuniary or otherwise, the aggrieved has undergone
• details of identity of the aggrieved and of the service provider
• all the options of A, B and C.

Q.46:- The Board shall prepare its annual statement of accounts and balance sheet showing the financial results and significant accounting policies in:

• Form B
• Form C
• Form A
• Form ‘A’, Form ‘B’ and Form ‘C’ and the Schedules.

Q.47:- The annual statement of accounts and balance sheet of the Board, duly authenticated and approved shall be forwarded to the Comptroller and Auditor General of India, for the purposes of audit, __________of the end of the financial year:

• within two months
• within three months
• within four months
• within one month

Q.48:- The Board shall maintain its accounts and records in the Form of financial statements:

• As per the Insolvency and Bankruptcy Board of India (Form of Annual Statement of Accounts) Rules, 2018.
• As per the Insolvency and Bankruptcy Board of India (Annual Report) Rules, 2018
• As per the Schedule III of the Companies Act,2013
• None of the above

Q.49:- For maintenance of the books and records the Board shall follow the general directions of the Central Government given in consultation with the____________in maintaining the financial statements:

• Comptroller and Auditor General of India
• Supreme Court of India
• No need to consult with any of the authority
• National Company Law Appellate Tribunal of India

Q.50:- “stakeholder” means:

• a service provider, a resolution applicant
• Any other person having an interest in the insolvency, liquidation, voluntary liquidation, or bankruptcy transaction
• A debtor, a creditor, a claimant,
• All of the options of A, B and C.