IBC · IBC · Chapter 13

Regulatory & Miscellaneous Aspects

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Insolvency and Bankruptcy Code 2016 — Insolvency and Bankruptcy Code 2016.

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Q

Which institutional pillar of the IBC collects, collates, authenticates and disseminates financial information of debtors in a centralised electronic database?

A

An Information Utility (IU) performs this role; it is a regulated and licensed repository of information relating to corporate debtors.

Q

What is an Information Utility (IU) under the IBC, 2016?

A

A regulated licensed repository collecting and disseminating debtor financial information.

Q

Under the IBC, which body is the adjudicating authority for corporate insolvency resolution and liquidation?

A

The National Company Law Tribunal (NCLT) is the adjudicating authority for corporate persons, while the Debt Recovery Tribunal (DRT) handles individuals and partnership firms.

Q

Under Regulation 21, within how many days must an IU deliver information of default to the debtor for confirmation?

A

Within seven days of receiving the information of default.

Q

What is the primary function of an Insolvency Professional Agency (IPA) under the IBC framework?

A

An IPA enrols and regulates insolvency professionals, setting standards of professional conduct and ensuring accountability of its members.

Q

What is the correct appellate chain for corporate insolvency matters under the IBC?

A

NCLT, then NCLAT, then Supreme Court.

Q

Which authority was established under the IBC to oversee insolvency and bankruptcy proceedings and regulate professionals and agencies?

A

The Insolvency and Bankruptcy Board of India (IBBI) was established as the regulator to oversee the IBC ecosystem, including IPs, IPAs, and IUs.

Q

Why do Debt Recovery Tribunals not yet exercise jurisdiction as Adjudicating Authorities under the IBC for partnership firms?

A

IBC provisions for partnership firms and individuals are not yet in force.

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