MCQs On IBBI Rules and Regulation Part-6

Q.1:- what shall be pay structure of Chairperson:

• The Chairperson shall have an option to receive pay as admissible to a Secretary to the Government of India or a consolidated salary of Rs. 5,50,000 per month.
• The Chairperson shall have an option to receive pay as admissible to a consolidated salary Government of India or a consolidated salary of Rs. 6,50,000 per month.
• The Chairperson shall have an option to receive pay as admissible to a Secretary to the Government of India or a consolidated salary of Rs. 4,50,000 per month.
• The Chairperson shall have an option to receive pay as admissible to a secretary to the Government of India or a consolidated salary of Rs. 3,50,000 per month.

Q.2:- Who is the leave sanctioning authority for the Whole-time member:

• The Central Government
• The Chairperson
• The Adjudicating Authority
• The President of India

Q.3:- The Chairperson and a whole-time member who has opted pay as admissible to a Secretary or an Additional Secretary to the Government of India respectively shall receive dearness allowance at the rates admissible to a _________of the Central Government of equivalent rank:

• Group ‘B’ Officer
• Group ‘D’ Officer
• Group ‘A’ Officer
• Group ‘C’ Officer

Q.4:- Who is the leave sanctioning authority for the Chairperson:

• The President of India
• The Whole-time member.
• The Adjudicating Authority
• The Central Government

Q.5:- A whole-time member shall be entitled to Leave Travel Concession at the same rates and at the same scales as are applicable to:

• A Group ‘A’ officer of the equivalent rank of the Central Government.
• A Group ‘A’ officer of the equivalent rank of the State Government.
• A Group ‘A’ officer of the equivalent rank of the Minster of Central Government.
• A Group ‘A’ officer of the equivalent rank of the Minister of State Government.

Q.6:- The Chairperson or a whole-time member shall be entitled to the encashment of leave in accordance with the rules applicable to Group ‘A’ officers of the Central Government, subject to a , including the leave encashed before superannuation:

• Maximum encashment of three hundred thirty five days
• Maximum encashment of three hundred sixty five days.
• Maximum encashment of three hundred days.
• Maximum encashment of two hundred forty days.

Q.7:- What is the provision of payment of sitting fee:

• Only the Whole-time member is entitled for the sitting fee for attending meetings of the Board.
• The Chairperson and a whole-time member shall not be entitled to any sitting fees for attending meetings of the Board.
• Only the Chairperson is entitled for the sitting fee for attending meetings of the Board.
• None of the above.

Q.8:- Where the Chairperson or a whole-time member occupies his own accommodation or makes private arrangements, he shall be entitled to a compensation comprising of of his Basic Pay and House Rent Allowance as admissible to a Group ‘A’ officer of the Government of India:

• Ten per cent
• Five per cent
• Twenty per cent
• Fifteen per cent

Q.9:- The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 came into force with effect from:

• 15th day of December, 2016
• 1st day of December, 2016
• 1st day of November, 2016
• 15th day of November, 2016

Q.10:- A financial creditor for initiating the corporate insolvency resolution process against a corporate debtor may file application in which Form:

• Form 2
• Form 4
• Form 1
• Form 3

Q.11:- “Identification number” means:

• The corporate identity number of the corporate person
• The limited liability partnership identification number
• Either A or B
• None of the above

Q.12:- Which one is NOT correct in respect of entitlement of leave to the Chairperson and a whole-time member:

• Earned Leave at the rate of thirty days for every completed calendar year of service
• Restricted holidays at the rate of two days in a calendar year availing to their choice
• Casual Leave at the rate of twelve days in a calendar year
• Half Pay Leave on medical certificate or on private affairs at the rate of twenty days in respect of each completed year of service

Q.13:- How the conveyance facility to the Chairperson and whole-time member will be provided:

• No passenger vehicle shall be purchased by the Board and requirement of vehicles shall be met by hiring.
• Chairperson and whole-time member can purchase car for official purpose after getting approval from the Central Government.
• Chairperson and whole-time member shall be entitled to a staff car for official purposes.
• Only A and C are correct.

Q.14:- What should be the minimum net worth criteria for registration as an insolvency professional agency:

• Ten crore rupees
• Fifteen crore rupees
• One crore rupees
• Five crore rupees

Q.15:- The Certificate of Registration to an insolvency professional agency is granted in which form:

• Form B
• Form I
• Form II
• Form A

Q.16:- Certificate of Registration shall be granted by the Board in which form:

• Form B
• Form C
• Form D
• Form A

Q.17:- An insolvency professional agency shall inform the Board if any of its professional members has temporarily surrendered his certificate of membership or revived his certificate of membership after temporary surrender, not later than from approval of the application for temporary surrender or revival, as the case may be:

• Seven days
• Fifteen days
• Three days
• Ten days

Q.18:- Which among the following shall NOT be recognised as an insolvency professional entity:

• Registered Partnership Firm
• Trust
• Limited Liability Partnership
• Company

Q.19:- If, after considering an application made under Regulation 6, the Board is of the prima facie opinion that the registration ought not be granted, it shall communicate the reasons for forming such an opinion and give the applicant an opportunity to explain why his application should be accepted, _______of the receipt of the communication from the Board, to enable it to form a final opinion:

• within twenty days
• within fifteen days
• within five days
• within ten days

Q.20:- “liquidation value” means:

• the market value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date
• the estimated realizable value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date
• the distress value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date
• the balance sheet value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date

Q.21:- When an insolvency professional shall make a public announcement:

• After confirmation to act as resolution professional
• Whenever he gets time to make such public announcement
• Immediately on his appointment as interim resolution professional
• None of the above

Q.22:- On an examination of books of account and other relevant records of the corporate debtor, the interim resolution professional shall identify:

• Two insolvency professionals who are-
• Three insolvency professionals who are-
• Four insolvency professionals who are-
• One insolvency professionals

Q.23:- In which form a person claiming to be a financial creditor, other than a financial creditor belonging to a class of creditors, shall submit claim with proof of claim to the interim resolution professional:

• in electronic form in Form C of the Schedule
• in electronic form in Form D of the Schedule
• in electronic form in Form A of the Schedule
• in electronic form in Form B of the Schedule

Q.24:- How to prove the existence of the claim by the other creditors:

• documentary evidence demanding satisfaction of the claim
• bank statements of the creditor showing non-satisfaction of claim
• the records available in an information utility
• all the options are correct.

Q.25:- The interim resolution professional shall convene the first meeting of the committee within …………….of filing the report under this Regulation:

• Seven days
• Fifteen days
• Three days
• Ten days

Q.26:- “Liquidation cost” under section 5(16) means:

• remuneration payable by the liquidator
• cost incurred by the liquidator
• fee payable to the liquidator
• all of the above

Q.27:- In which form the liquidator shall maintain the particulars of any consultation with the stakeholders:

• Form B
• Form D
• Form A
• Form C

Q.28:- How and when a transaction shall be considered an extortionate credit transaction under section 50(2) of the Code, where the terms:

• Where the transactions are done in the ordinary course of business
• Where the terms require the corporate debtor to make exorbitant payments in respect of the credit provided.
• Where the terms are unconscionable under the principles of law relating to contracts.
• Only B and C are correct.

Q.29:- 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 13th February - 31st March, 2017:

• 15th May, 2017
• 15th July, 2017
• 15th April, 2017
• 15th June, 2017

Q.30:- 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 13th February - 31st March, 2017:

• 15th June, 2017
• 15th April, 2017
• 15th July, 2017
• 15 May, 2017

Q.31:- In which form a person, claiming to be a stakeholder other than those under Regulations 17 (1), 18 (1), or 19 (1), shall submit proof of claim to the liquidator:

• Form F
• Form G
• Form D
• Form E

Q.32:- Where there are mutual dealings between the corporate debtor and another party, how the settlement will be done:

• The sums due from one party shall be set off against the sums due from the other to arrive at the net amount payable to the corporate debtor or to the other party.
• Only the claim of the creditor shall be entertained.
• The Corporate Debtor’s claim against the creditor shall be entertained first.
• None the correct.

Q.33:- What is manner of sell of assets:

• He may sell the assets in a slump sale
• He may sell a set of assets collectively or in parcels.
• He may sell an asset on a standalone basis
• All the options are correct

Q.34:- The liquidator shall file the list of stakeholders with the Adjudicating Authority within from the last date for receipt of claims, and the filing of the list shall be announced to the public in the manner specified in Regulation 12(3):

• Fifty days
• Forty-five days
• Thirty five days
• Forty days

Q.35:- The provisions of IBBI(Liquidation Process) Regulation, 2016 shall not apply, if the secured creditor enforces his security interest under:

• The Transfer of Property Act. 1882
• The Transfer of Property Act. 1882
• The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
• Options A and C both are correct.

Q.36:- Is it mandatory to have the Bye-laws of Insolvency Professional Agency:

• No
• Depends on the discretions of the IPA
• Yes
• None of the above

Q.37:- How many directors in the Governing Board of IPA shall be the person resident in India:

• More than 50 % of the directors
• More than 70 % of the directors
• More than 40% of the directors
• More than 60 % of the directors

Q.38:- Who can be the Chairperson of the Governing Board of IPA:

• The directors shall elect an independent director as the Chairperson of the Governing Board.
• Chairperson need not be an independent director.
• Any director can be the Chairperson.
• Directors choose one person among them to be the Chairperson.

Q.39:- In which form the IBBI shall grant Certificate of Registration:

• Form B
• Form A
• Form D
• Form C

Q.40:- What is the Composition of Advisory Committee:

• General Members, who are eminent citizens having direct involvement or interest in the area
• General Members, who are eminent citizens not having direct involvement or interest in the area
• Professional Members, who are eminent academicians or practitioners in the relevant area
• Only B and C

Q.41:- What is the meaning of ‘fast track process’?

• It means the fast track insolvency resolution process for corporate persons under Chapter III of Part II of the Code.
• It means the fast track insolvency resolution process for corporate persons under Chapter IV of Part II of the Code.
• It means the fast track insolvency resolution process for corporate persons under Chapter V of Part II of the Code.
• It means the fast track insolvency resolution process for corporate persons under Chapter II of Part II of the Code.

Q.42:- A workman or an employee of the corporate debtor shall submit proof of claim to the interim resolution professional in person, by post or by electronic means in which Form:

• Form D
• Form C
• Form B
• Form A

Q.43:- 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-nine percent
• forty-nine percent
• thirty-three percent
• forty –three percent

Q.44:- What is the meaning of Liquidation value:

• It is the present value of the future estimated realizable value of the assets of the corporate debtor if the corporate debtor were to be liquidated on the fast track commencement date.
• It is the estimated realizable value of the assets of the corporate debtor if the corporate debtor were to be liquidated on the fast track commencement date.
• It is the actual realizable value of the assets of the corporate debtor if the corporate debtor were to be liquidated on the fast track commencement date.
• It is the book value of the assets as per the Balance sheet of the corporate debtor if the corporate debtor were to be liquidated on the fast track commencement date.

Q.45:- The certificate of registration as Information Utility granted by the Board shall be valid for a period of __________________.

• Four years from the date of issue
• Five years from the date of issue
• Two years from the date of issue
• Three years from the date of issue

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

• Form D
• Form B
• Form E
• Form C

Q.47:- The duly audited annual statement of accounts and balance sheet of the Board as certified by the Comptroller and Auditor General of India together with the audit report there on shall be forwarded by the Chairperson for every financial year to the Central Government for:

• Laying before each House of Parliament
• Laying before the Lower House of Parliament
• Laying before the Upper house of Parliament
• None of the above