IBC

Question 1

Applicability of fast track resolution

Answer 1

1. Small Co.
2. Start-up
3. Unlisted company with total assets not exceeding 1 cr. as per FS immediately preceeding the FY

Question 2

Distribution of assets

Answer 2

1. Insolvency resolution process and liquidation costs
2. workmen dues of 24 months and secured crs. who have relinquished security
3. Employee dues of 12 months
4. Financial debts owed to unsecured creditors
5. dues to cg, sg for 2 years and unpaid secured crs
6. remaining debts and dues
7. preference shareholders
8. equity shareholders

Question 3

Under the IBC, The resolution plan shall be approved by the Committee of Creditors by a vote of not less than—————percent of voting share of the financial creditors.

Answer 3

66%

Question 4

ABC and Co, the tax consultants of X Limited for which an interim resolution professional – Mr A, has been appointed under the Corporate Insolvency resolution process has refused to furnish information to Mr A on the grounds of client confidentiality. Are they right?

Answer 4

No, the Code provides powers to the IRP to access all information from various parties

Question 5

With whom will the Central Government file an application if it is of the opinion that such a scheme is not in public interest or in the interest of the creditors?

Answer 5

it may file an application before the Tribunal

Question 6

In case of a contravention of the resolution plan, an application for liquidation can be made by

Answer 6

By any person other than the corporate debtor whose rights have been prejudicially affected