Model Question Paper (1st January, 2018 to 31st October 2018) Part-02

Q.1:- Exchange markets and Over Counter Markets are considered as two types of -

• Secondary market
• Inter market
• Primary market
• Risky market

Q.2:- “S4A” scheme of RBI stands for

• Scheme for Sustainable Structuring of Systemic Assets
• Scheme for Sustainable Structuring of Stressed Assets
• Scheme for Schematic Structuring of Systemic Assets
• Scheme for Schematic Structuring of Stressed Assets

Q.3:- The Arbitration agreement as defined in Section 7(2) of The Arbitration and Conciliation Act, 1996 may be:

• may be in the form of an arbitration clause in a contract or in the form of a separate agreement
• in form of contract and a separate agreement
• implied oral agreement.
• in form of contract and a written agreement

Q.4:- As per the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what constitutes as ‘non­ performing assets’?

• An account for which a borrower has refused to repay.
• An asset of a borrower which has been classified by a credit rating agency as doubtful.
• An asset of borrower’s subsidiaries company.
• An asset or an account of a borrower which has been classified by a bank as sub-standard or doubtful or loss asset.

Q.5:- Readiness under The Specific Relief Act,1983 may mean capacity of plaintiff to perform contract which does not include

• willingness of plaintiff
• performance of plaintiff
• financial ability of plaintiff
• potential of plaintiff

Q.6:- Under the Sale of Goods Act, 1930, ‘delivery’ means

• involuntary transfer of possession from one person to another
• transfer of possession irrespective of whether it is gratuitous, involuntary or voluntary, from one person to another.
• voluntary transfer of possession from one person to another
• gratuitous transfer of possession from one person to another

Q.7:- Which of the following circumstances is not a condition for winding up of limited liability partnership by the Tribunal?

• the number of partners of the limited liability partnership is reduced below two for the last 9 months.
• the limited liability partnership decides that it would be wound up by the Tribunal.
• if the limited liability partnership has made a default in filing with the Registrar the Statement of Accounts and Solvency or annual return for any two consecutive financial years.
• the number of partners of the limited liability partnership is reduced below two for the last 12 months.

Q.8:- Where a partnership agreement provides neither for the duration nor for the determination of the partnership, it is

• never a partnership
• partnership at will
• joint stock company
• limited liability partnership

Q.9:- Can a member function as a Bench of National Company Law Tribunal?

• No, a member cannot function as a Bench.
• Yes, only in exigencies when no other member is available.
• Yes, judicial member, if duly authorised.
• Yes, a technical member, if duly authorised.

Q.10:- The date from which the scheme of mergers and amalgamation of companies is effective is

• date of creditor’s assent to merger.
• effective date.
• date of order of merger by National Company Law Tribunal.
• appointed date.

Q.11:- Par value of a share means-

• actual value of the share
• face value of the share
• market value of the share
• dividend value of the share

Q.12:- An order of the Insolvency and Bankruptcy Board of India directing an inspecting authority to conduct an inspection of records of a service provider may not contain

• composition of inspecting authority
• scope of inspection
• timelines for conducting the inspection
• privileges of service provider

Q.13:- Which of the following is not a requirement for registration as an information utility?

• More than half of its directors are independent directors.
• It has a minimum net worth of Rs.50 crore.
• Its sole object is to provide core services and other services under the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.
• Not more than 26% of its voting power is held by persons resident outside India.

Q.14:- The option to sell the assets of a corporate debtor by means of private sale under the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 is not available to a liquidator if the asset is

• likely to deteriorate in value if not sold immediately.
• perishable.
• sold at a price higher than the reserve price of a failed auction.
• sold at a price lower than the reserve price of a failed auction.

Q.15:- Who decides the fees payable to a liquidator under the IBBI (Liquidation Process) Regulations, 2016?

• Adjudicating Authority
• Committee of Creditors
• Insolvency and Bankruptcy Board of India
• Corporate Debtor

Q.16:- Which of the following is eligible for registration as an insolvency professional?

• An MBA with 11 years of professional experience and having passed the Limited Insolvency Examination
• An engineer with 15 years professional experience and having passed the National Insolvency Examination
• A chartered Accountant with 11 years of professional experience and having attempted National Insolvency Examination
• An advocate with 11 years of professional experience and having passed the Limited Insolvency Examination

Q.17:- Which of the following statements is not true about the disposal of the show cause notice issued to an insolvency professional agency?

• The Disciplinary Committee disposes of the show-cause notice by a reasoned order in adherence to principles of natural justice.
• The order of disposal of show-cause notice becomes effective on the day of receipt of the order by the insolvency professional agency.
• The Disciplinary Committee endeavours to dispose of the show cause notice within a period of six months of the assignment.
• The order of disposal of show-cause notice becomes effective ordinarily after thirty days of the date of issue of order.

Q.18:- In case the resolution professional receives more than one resolution plan,

• he shall forward the plan submitted by the creditor having highest voting share.
• he shall select the best plan for approval by the Committee of Creditors.
• he shall refer the matter to adjudicating authority for directions.
• he shall select all such plans that meet the requirements of the Insolvency and Bankruptcy Code and present them before Committee of Creditors.

Q.19:- In the Corporate Insolvency Resolution Process, if there are dues to numerous workmen of the Corporate Debtor,

• the resolution professional shall hire a professional agency to consolidate all such claims.
• all such workmen have to submit their dues individually.
• the resolution professional shall announce dues as per Corporate Debtors’ records and invited application for disputes if any
• an authorized representative may submit one proof of claim on behalf of all such dues.

Q.20:- A Debt Recovery Tribunal does not have jurisdiction to entertain

• a claim made by or against an individual debtor.
• a suit or proceeding by or against an individual debtor.
• a question of priorities arising out of insolvency of an individual debtor.
• a claim made by or against a corporate debtor.

Q.21:- If an appeal could not be filed against an order of the NCLAT within the prescribed time before the Supreme Court for sufficient cause, the Supreme Court may allow the appeal to be filed within a further period of.

• 30 days
• 15 days
• 45 days
• 20 days

Q.22:- Any information utility which is aggrieved by an order of the Insolvency and Bankruptcy Board of India may prefer an appeal to

• Ministry of Corporate Affairs
• High Court
• National Company Law Appellate Tribunal
• National Company Law Tribunal

Q.23:- In a bankruptcy process, unsecured creditors rank

• equally amongst themselves
• in ascending order of the period of default of the debt
• in ascending order of the amount of debt due to them
• in descending order of the amount of debt due to them

Q.24:- Who prepares the list of creditors of the bankrupt after a bankruptcy order is passed by the adjudicating authority?

• Adjudicating Authority
• Resolution Professional
• Bankruptcy trustee
• Bankrupt

Q.25:- A creditor may apply in relation to any partnership debt owed to him for initiating an insolvency resolution process against.

• any one or more designated partners of the firm or the firm
• any one or more partners of the firm or the firm
• any one or more partners of the firm
• any one or more partners of the firm and the firm

Q.26:- Under the Insolvency and Bankruptcy Code, 2016, who is eligible to make application for avoidance of transactions if the terms of such transaction required exorbitant payments to be made by the corporate debtor?

• The corporate debtor
• A financial creditor
• The resolution professional
• The committee of creditors

Q.27:- The decision of admission or rejection of a claim is communicated by the liquidator to.

• the adjudicating authority and the creditor concerned
• all creditors and the Insolvency and Bankruptcy Board of India
• the creditor concerned and the corporate debtor
• the corporate debtor and the adjudicating authority

Q.28:- Who proposes the name of the new resolution professional, if the interim resolution professional is being replaced by the Committee of Creditors?

• Interim resolution professional
• Committee of Creditors
• Insolvency and Bankruptcy Board of India
• Adjudicating Authority

Q.29:- Which of the following enactments has not been amended as part of the Insolvency and Bankruptcy Code, 2016?

• The Customs Act, 1962
• The Limitation Act, 1963
• The Recovery of Debts due to Banks and Financial Institutions Act, 1993
• The Indian Partnership Act, 1932

Q.30:- Basic Earnings per Share (EPS) is calculated as

• (Net Profit - Dividend) /Total shares outstanding
• Net profit /total number of shares
• (Net Profit - Preference Share Capital) /Average shares outstanding
• (Net profit - preferred dividend)/weighted average number of outstanding shares

Q.31:- Whether “ManChow” can apply for fresh start process?

• No, as he is required to seek prior approval of the Insolvency and Bankruptcy Board of India
• Yes, before the National Company Law Tribunal
• Yes, before the Debt Recovery Tribunal
• No, ManChow is ineligible for applying for fresh start process

Q.32:- Who can initiate an insolvency resolution process?

• SAFE Bank
• ManChow
• Dhiraj Kumar
• Nitin Mukesh