MCQs - INSOLVENCY & BANKRUPTCY CODE

For RBI Grade B 2018 and NABARD Grade A and Grade B 2018

www.edutap.co.in
 MCQ’s
INSOLVENCY & BANKRUPTCY CODE,
2016

www.edutap.co.in
1. Which of the following is correct ranking of India in World Bank’s doing business report (2018)?
a) 92
b) 100
c) 120
d) 136
2. On “resolving insolvency” front under World Bank’s doing business report (2018), India’s ranking
as compared to last year (2017) has:
a) Remained unchanged
b) declined
c) Improved
d) None of the above

www.edutap.co.in
3. ___________ is a situation whereby a court of competent jurisdiction has declared a person or other
entity unable to fulfill its financial obligations.
a) Insolvency
b) Bankruptcy
c) Liquidation
d) None of the above
4. In erstwhile regime prior to implementation of Insolvency and Bankruptcy Code, insolvency of
companies was dealt with which of the following statutes?
a) Sick Industrial Companies Act, 1985
b) Recovery of Debt Due to Banks and Financial Institutions Act, 1993
c) Securitization & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002
d) All of the above

www.edutap.co.in
5. Under the Insolvency and Bankruptcy Code, 2016 who among the following can initiate
insolvency process?
a) Financial Creditor
b) Operational Creditor
c) Corporate Debtor
d) All of the above
6. Which of the following has been appointed as adjudicating authority for individuals and firms
under the Insolvency and Bankruptcy Code, 2016?
a) National Company Law Tribunal (NCLT)
b) National Financial Reporting Authority (NFRA)
c) Debt Recovery Tribunal (DRT)
d) None of the above
www.edutap.co.in
7. ____________ is the process of winding up a corporation or incorporated entity.
a) Insolvency
b) Bankruptcy
c) Liquidation
d) None of the above
8. Which of the following has been appointed as adjudicating authority for companies and limited
liability entities under the Insolvency and Bankruptcy Code, 2016?
a) National Company Law Tribunal (NCLT)
b) National Financial Reporting Authority (NFRA)
c) Debt Recovery Tribunal (DRT)
d) None of the above

www.edutap.co.in
9. Under the Insolvency and Bankruptcy Code, 2016 an appeal against Debt Recovery Appellate
Tribunal and National Company Law Appellate Tribunal may be filed before:
a) President of India
b) Ministry of Corporate Affairs
c) Securities and Exchange Board of India
d) Supreme Court
10. Under the Insolvency and Bankruptcy Code, 2016, which of the following would take place in
case of rejection of the insolvency resolution plan?
a) Company will be managed by the government
b) Company will be liquidated
c) Creditors committee will take over management and control of the company
d) None of the above

www.edutap.co.in
11. Under the Insolvency and Bankruptcy Code, 2016, creditors are required to submit a plea for
insolvency to the:
a) Reserve Bank of India
b) Committee of Creditors
c) Adjudicating Authorities
d) Ministry of Corporate Affairs
12. Under the Insolvency and Bankruptcy Code, 2016, which of the following payments has been
accorded first priority under “Priority of Payment of Debts”?
a) Costs and expenses incurred by the bankruptcy trustee
b) Workmen’s dues for the period of preceding twenty-four months
c) Debts owed to secured creditors
d) Amounts due to the Central Government and the State Government

www.edutap.co.in
13. Which of the following is/are among key infrastructure pillars under Insolvency and Bankruptcy
Code, 2016?
a) Insolvency and Bankruptcy Board of India
b) Insolvency Professional Agencies
c) Information Utilities
d) All of the above
14. Which of the following in incorrect regarding Insolvency and Bankruptcy Board of India (IBBI)
under the Insolvency and Bankruptcy Code, 2016?
a) Code provides for constitution of IBBI with 10 members
b) It will include representatives from Reserve Bank of India and Central Government
c) Its governing board will be chaired by Finance Minister
d) It has been vested with powers of civil court under Code of Civil Procedure, 1908

www.edutap.co.in
15. Under the Insolvency and Bankruptcy Code, 2016 which among the following agencies have
been specifically created to regulate Insolvency Professionals?
a) Committee of Creditors
b) Insolvency and Bankruptcy Board of India
c) Insolvency Professional Agencies
d) Information Utilities
16. Insolvency and Bankruptcy Code, 2016 requires creditors to provide financial information of
debtors to _________ on an ongoing basis.
a) Reserve Bank of India
b) Insolvency and Bankruptcy Board of India
c) Insolvency Professional Agencies
d) Information Utilities

www.edutap.co.in
17. Which of the following is/are expected benefits of implementation of Insolvency and
Bankruptcy code, 2016?
a) Help India increase its Ease of doing business quotient
b) Encourage innovation and entrepreneurship
c) Reducing increasing Non Performing Assets (NPAs) plaguing the banks’ Balance Sheets
d) All of the above
18. Which of the following is/are correct regarding insolvency resolution options under the
Insolvency and Bankruptcy Code, 2016?
a) It provides for restructuring of the firm, if firm is not financially viable
b) It provides for liquidation of the firm, if firm is viable
c) Both are correct
d) None of the above

www.edutap.co.in
 ANSWERS
1.B 10.B
2.C 11.C
3.B 12.A
4.D 13.D
5.D 14.C
6.C 15.C
7.C 16.D
8.A 17.D
9.D 18.D

www.edutap.co.in
 ANSWERS
1.B 10.B
2.C 11.C
3.B 12.A
4.D 13.D
5.D 14.C
6.C 15.C
7.C 16.D
8.A 17.D
9.D 18.D

www.edutap.co.in
 MCQ’s
AMENDMENTS IN
INSOLVENCY & BANKRUPTCY CODE,
2016

www.edutap.co.in
1. One of the key highlight of Insolvency and Bankruptcy (Amendment) Act, 2018 is insertion of
Section 29A. Section 29A deals with:
a) Special dispensation for MSMEs
b) Differentiation of Financial & Operational Creditors
c) Persons ineligible to be Insolvency resolution applicant
d) None of the above
2. According to Insolvency and Bankruptcy (Amendment) Act, 2018, who among the following
persons shall be ineligible to be a resolution applicant?
a) Undischarged insolvent
b) Willful defaulter
c) Person prohibited from trading in securities by SEBI
d) All of the above

www.edutap.co.in
3. Government had constituted a 14 member committee to examine various issues relating to
implementation of Insolvency and Bankruptcy code under the chairmanship of:
a) M S Sahoo
b) Sudarshan Sen
c) Injeti Srinivas
d) T K Vishwanathan
4. As per provisions of recently promulgated Insolvency and Bankruptcy Code Amendment
(Ordinance) 2018, homebuyers have been brought at par with:
a) Financial Creditors
b) Operational Creditors
c) Employees & Workers of the company
d) Statutory bodies
www.edutap.co.in
5. As per provisions of recently promulgated Insolvency and Bankruptcy Code Amendment
(Ordinance) 2018, voting threshold of committee of creditors has been lowered to:
a) 75%
b) 60%
c) 51%
d) 26%
6. As per provisions of recently promulgated Insolvency and Bankruptcy Code Amendment
(Ordinance) 2018, what special change has been made for MSME sector?
a) Promoters of MSMEs undergoing resolution would be able to bid for their companies
b) Voting threshold has been lowered to 26% for approving insolvency
c) Priority will be accorded to MSMEs in allocation of Insolvency Professionals
d) None of the above
www.edutap.co.in
 ANSWERS
1. C
2. D
3. C
4. A
5. C
6. A

www.edutap.co.in
MCQS - INSOLVENCY & BANKRUPTCY CODE 2016

www.edutap.co.in
Thank You! Happy Learning!

www.edutap.co.in