ibbi.gov.in 2018 Limited Insolvency Examination Model Question Paper : Bankruptcy Board of India

Organisation : Insolvency and Bankruptcy Board of India
Exam : Limited Insolvency Examination
Document Type : Model Question Paper
Year : 2018
Website : http://www.ibbi.gov.in/limited-insolvency.html
Download Question paper : https://www.pdfquestion.in/uploads/25922-LIE.pdf

IBBI Limited Insolvency Exam Question Paper

The examination will be conducted online (computer-based in a proctored environment) with objective multiple-choice questions. The duration of the examination will be two hours.

Related / Similar Question Paper : IBBI Valuation Exam Asset Class 2018 Sample Paper

Sample Questions

1. Which of the following enactments has not been amended as part of the Insolvency and Bankruptcy Code, 2016?
a) The Indian Partnership Act, 1932
b) The Customs Act, 1962
c) The Recovery of Debts due to Banks and Financial Institutions Act, 1993
d) The Limitation Act, 1963
Ans.(d)

2. 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)

3. Who proposes the name of the new resolution professional, if the interim resolution professional is being replaced by the Committee of Creditors?
a) Adjudicating Authority
b) Interim resolution professional
c) Insolvency and Bankruptcy Board of India
d) Committee of Creditors
Ans.(d)

4. 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)

5. The decision of admission or rejection of a claim is communicated by the liquidator to ______________.
a) all creditors and the Insolvency and Bankruptcy Board of India
b) the corporate debtor and the adjudicating authority
c) the adjudicating authority and the creditor concerned
d) the creditor concerned and the corporate debtor
Ans.(d)

6. 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)

7. Under the Insolvency and Bankruptcy Code, 2016, who is eligible to make application for avoidance of transactions if the terms of such transaction required exorbitant payments to be made by the corporate debtor?
a) A financial creditor
b) The committee of creditors
c) The corporate debtor
d) The resolution professional
Ans. (d)

8. Which of the following is an excluded asset for the purposes of Part III of the Insolvency and Bankruptcy Code, 2016 dealing with insolvency resolution and bankruptcy for individuals?
a) Unencumbered tools necessary for personal use of the debtor
b) Money received from provident fund after retirement
c) Ornaments used by self and the spouse irrespective of their usage
d) One pucca house irrespective of its value
Ans.(a)

9. A creditor may apply in relation to any partnership debt owed to him for initiating an insolvency resolution process against _______________.
a) any one or more partners of the firm or the firm
b) any one or more partners of the firm and the firm
c) any one or more designated partners of the firm or the firm
d) any one or more partners of the firm
Ans.(a)

10. The report on premature end of a repayment plan submitted by a resolution professional to the Adjudicating 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) an application for initiation of bankruptcy.
Ans. (d)

11. Who prepares the list of creditors of the bankrupt after a bankruptcy order is passed by the adjudicating authority?
a) Bankruptcy trustee
b) Bankrupt
c) Adjudicating Authority
d) Resolution Professional
Ans.(a)

12. An onerous property that a bankruptcy trustee may disclaim does not include-
a) A readily saleable property
b) an unsaleable property
c) an unprofitable contract
d) a property that may give rise to a claim
Ans.(a)

13. In a bankruptcy process, unsecured creditors rank ______.
a) in ascending order of the amount of debt due to them
b) in descending order of the amount of debt due to them
c) equally amongst themselves
d) in ascending order of the period of default of the debt
Ans.(c)

14. Which of the following is not a function of an Insolvency Professional Agency?
a) grant membership to persons who fulfil all requirements set out in its byelaws on payment of membership fee
b) lay down standards of professional conduct for its members
c) monitor the performance of its members
d) register insolvency professionals
Ans.(d)

15. Any information utility which is aggrieved by an order of the Insolvency and Bankruptcy Board of India may prefer an appeal to___.
a) High Court
b) National Company Law Tribunal
c) Ministry of Corporate Affairs
d) National Company Law Appellate Tribunal
Ans.(d)

16. Which of the following members of the Insolvency and Bankruptcy Board of India may be included as Members of the Disciplinary Committee?
a) Independent members
b) Whole time members
c) Executive members
d) Nominee members
Ans.(b)

17. If an appeal could not be filed against an order of the NCLAT within the prescribed time before the Supreme Court for sufficient cause, the Supreme Court may allow the appeal to be filed within a further period of ______.
a) 15 days
b) 20 days
c) 30 days
d) 45 days
Ans.(a)

18. An officer of a corporate debtor shall be liable for punishment under section 68 of the Insolvency and Bankruptcy Code, 2016, if he has, within the twelve months immediately preceding the insolvency commencement date, ____________
a) fraudulently removed any part of the property of the corporate debtor of the value of three thousand rupees.
b) wilfully concealed any property or part of such property of the corporate debtor of the value of three thousand rupees.
c) wilfully created any security interest over any property of the corporate debtor which has not been obtained on credit.
d) wilfully made any false entry in any book or paper affecting or relating to the property of the corporate debtor or its affairs.
Ans. (d)

Syllabus

a. The Insolvency and Bankruptcy Code, 2016 (Entire Code)
b. Rules and Regulations under the Bankruptcy Code (All Rules and Regulations notified under the Code till 31st December, 2017)

c. (I) The Companies Act, 2013
** Chapter III Prospectus and Allotment of Securities
** Chapter IV Share Capital and Debentures
** Chapter V Acceptance of Deposits by Companies
** Chapter VI Registration of Charges

** Chapter VII Management and Administration
** Chapter IX Accounts of Companies
** Chapter XV Compromises, Arrangements and Amalgamations
** Chapter XVII Registered Valuers

** Chapter XVIII Removal of names of the companies from the register of companies
** Chapter XX Winding-up of the companies
** Chapter XXVII NCLT and NCLAT

(II)The Partnership Act, 1932, and
(III)The Limited Liability Partnership Act, 2008
(Nature of LLP; Partners and their Relations; Limitation of Liability; Financial Disclosures)