Name of the Organisation : National Institute of Securities Markets
Exam : Limited Insolvency Examination
Year : 2017
Document Type : Model Question Paper
Website : http://nism.ac.in/
Download Model Question Paper : https://www.pdfquestion.in/uploads/22170-LIE.pdf
Limited Insolvency Exam Question :
1. Core services of an information utility do not include___________
(a) accepting electronic submission of financial information.
Related : Pondicherry University BINC Bioinformatics National Certification Examination Paper – II Question : www.pdfquestion.in/14071.html
(b) safe and accurate recording of financial information.
(c) authenticating and verifying the financial information.
(d) determination of default.
Ans. (d)
2. A corporate insolvency resolution process commences on the date of _________.
(a) first meeting of the committee of creditors
(b) date of admission of the application by the National Company Law Tribunal
(c) date of appointment of interim resolution professional.
(d) date of public announcement.
Ans. (b)
3. A public announcement of the corporate insolvency resolution process may not contain ____
(a) penalties for false or misleading claims.
(b) details of the interim resolution professional.
(c) name of the authority with which the corporate debtor is incorporated.
(d) details of the assets and liabilities of the debtor.
Ans. (d)
4. The management of the affairs of a corporate debtor undergoing corporate insolvency resolution process vests in the________
(a) Interim Resolution Professional.
(b) Board of Directors.
(c) Committee of Creditors.
(d) Insolvency and Bankruptcy Board of India.
Ans. (a)
5. A resolution professional does not require approval of the committee of creditors for_______
(a) creating security interest over the assets of the corporate debtor.
(b) undertaking related party transaction.
(c) amending constitutional document of the corporate debtor.
(d) issuing information memorandum.
Ans. (d)
6. A resolution professional shall file an application to the adjudicating authority to extend the period of fast track resolution if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of not less than___________ percent of the voting shares.
(a) 90
(b) 75
(c) 66
(d) 51
Ans. (b)
7. The liquidation estate of a corporate debtor comprises liquidation estate assets which include______
(a) assets owned by a third party which are in possession of the corporate debtor.
(b) assets owned of an Indian subsidiary of the corporate debtor.
(c) assets of a foreign subsidiary of the corporate debtor.
(d) assets of the corporate debtor in respect of which a secured creditor has relinquished security interest.
Ans. (d)
8. A liquidator collects the claims of creditors on commencement of the liquidation process. Which of the following is true in this regard?
(a) A creditor may withdraw but not vary his claim.
(b) A creditor may not withdraw but vary his claim.
(c) A creditor may withdraw or vary his claim.
(d) A creditor may neither withdraw nor vary his claim.
Ans. (c)
9. A preference shall be deemed to be given at a relevant time under section 43 of the Insolvency and Bankruptcy Code, 2016 if it is given to a_________during the period of_________years preceding the insolvency commencement date.
(a) related party, two years
(b) unrelated party, two years
(c) related party, three years
(d) unrelated party, two years
Ans. (a)
10. The expression “workmen’s dues” for the purpose of distribution of proceeds from the sale of liquidation assets under section 53 of the Insolvency and Bankruptcy Code, 2016 shall have the same meaning as assigned to it in the _______
(a) the Companies Act, 2013.
(b) the Securitisation and Reconstruction of the Financial Assets and Enforcement of the Securities Interest Act, 2002.
(c) the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
(d) the Factories Act, 1948.
Ans. (a)
11. A debtor may apply for a Fresh Start Process, if his gross annual income does not exceed rupees__________.
(a) sixty thousand
(b) one lakh
(c) five lakh
(d) ten lakh
Ans. (a)
12. The debtor is discharged from interest by the Adjudicating Authority in respect of the qualifying debts under the Fresh Start Process from_________
(a) date of admission of application till the date of discharge order.
(b) date of application till the end of the moratorium period.
(c) date of application till the date of the discharge order.
(d) date of admission of application till the end of the moratorium period.
Ans. (c)
13. If an application is made for Insolvency Resolution Process by a partnership firm, an interim-moratorium shall commence on the date of the ____________
(a) application in relation to qualifying debts and shall cease to have effect on the date of admission of such application.
(b) admission of application in relation to all the debts and shall cease to have effect within 7 days of admission of such application.
(c) application in relation to all the debts and shall cease to have effect on the date of admission of such application.
(d) application in relation to all the debts and shall cease to have effect within 7 days of admission of such application.
Ans. (c)
14. The report on premature end of a repayment plan submitted by a resolution professional to the adjudication authority need not contain___________
(a) receipts and payments made in pursuance of the repayment plan.
(b) reason for premature end of the repayment plan.
(c) details of the creditors whose claims have not been fully satisfied.
(d) prayer for an alternate repayment plan.
Ans. (d)
15. If a bankruptcy trustee has not been proposed in the application for bankruptcy of a debtor, the adjudicating authority shall____
(a) direct the creditor applicant to suggest a bankruptcy trustee within 10 days.
(b) direct the Insolvency and Bankruptcy Board of India to nominate a bankruptcy trustee within 10 days.
(c) appoint a bankruptcy trustee from the database of insolvency professionals.
(d) reject the application.
Ans. (b)