CAIIB · ABM

25 C ABM Resolution process of stressed assets under the IBC 2016

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

What does IBC stand for in the context of Indian insolvency law?

A

IBC stands for Insolvency and Bankruptcy Code, enacted in 2016 to consolidate and amend laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals.

Q

What is the time limit for completion of CIRP under IBC 2016 including litigation extensions?

A

330 days including time spent in litigation proceedings

Q

Which authority was established under IBC 2016 to regulate insolvency professionals and agencies?

A

The Insolvency and Bankruptcy Board of India (IBBI) was established under IBC 2016 as the regulator for insolvency professionals, insolvency professional agencies, and information utilities.

Q

Under IBC 2016, who appoints the Interim Resolution Professional (IRP)?

A

The adjudicating authority NCLT appoints the IRP

Q

What is the maximum time limit prescribed under IBC for completion of the Corporate Insolvency Resolution Process (CIRP)?

A

The maximum time limit for CIRP is 330 days including litigation periods, extended from the original 180 days plus a 90-day extension permitted by the adjudicating authority.

Q

What is the minimum threshold for CoC approval of a resolution plan as amended by IBC 2019?

A

66 percent voting share of financial creditors

Q

Who is the adjudicating authority for corporate insolvency resolution under IBC 2016?

A

The National Company Law Tribunal (NCLT) is the adjudicating authority for corporate insolvency resolution proceedings under IBC 2016, while NCLAT is the appellate authority.

Q

What is the role of NCLT in the IBC resolution framework?

A

NCLT admits CIRP applications and approves resolution plans

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