Evolution of Insolvency and Bankruptcy Code
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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Free sample — 8 of 65 rapid-fire Q&A cards.
What is the foremost objective of the Insolvency and Bankruptcy Code, 2016 when a viable corporate debtor defaults?
The primary objective is time-bound reorganisation and insolvency resolution to maximise the value of assets and ensure revival and continuation of the firm.
What minimum voting threshold of the Committee of Creditors is required to approve a resolution plan under IBC?
66% in value of the Committee of Creditors' voting share
Why is liquidation considered a last resort under the IBC, 2016?
IBC protects the corporate debtor from 'death by liquidation' and focuses on revival; liquidation is only triggered when resolution fails or is not feasible.
Under Section 8 of IBC, how many days' notice must an operational creditor serve before filing for CIRP?
10 days' demand notice before filing for insolvency
What was the major drawback of the pre-IBC insolvency framework in India?
The pre-IBC framework was fragmented across multiple laws with no single unified code, resulting in lengthy delays, low recovery rates, and poor creditor outcomes.
What was the revised minimum default threshold introduced in March 2020 to trigger CIRP against a corporate debtor?
Rs 1,00,00,000 (one crore rupees) as per 2020 gazette notification
Which committee's recommendations formed the basis for the enactment of the Insolvency and Bankruptcy Code, 2016?
The Bankruptcy Law Reforms Committee (BLRC), chaired by Dr. T.K. Viswanathan, submitted its report in November 2015, which formed the basis for the IBC.
Which section of IBC imposes a moratorium preventing creditors from taking enforcement action against a corporate debtor during CIRP?
Section 14 of IBC imposes the moratorium during CIRP
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