Find the answers and explanations at the end of the post:
Q.1 – Which of the following statements is/are correct with respect to the Insolvency and Bankruptcy Code, 2016 (IBC): (1) The IBC allows a maximum time-period of 180 days for the insolvency resolution process; (2) Appeals from the National Company Law Tribunal (NCLT) lie directly to the Supreme Court of India.
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Q.2 – The National Company Law Tribunal has jurisdiction over the resolution process of which of the following: (1) Limited Liability Partnerships; (2) Partnership Firms; (3) Companies.
a. Only 3
b. Only 1 and 3
c. Only 2 and 3
d. 1, 2 and 3
Q.3 – Which of the following committees is related to the enactment of the Insolvency and Bankruptcy Code, 2016:
a. Viswanathan Committee
b. Nachiket Mor Committee
c. B. Sivaraman Committee
d. Naresh Chandra Committee
Answers and explanation-
Q. 1 – d. Neither 1 nor 2
Q. 2 – b. Only 1 and 3
Q. 3 – a. Viswanathan Committee
In case of companies or limited liability partnerships, the Code prescribes a limit of 180 days from the date of admission of the application (extendable to a period of 90 days with approval of 75% of the creditors) within which the IRP should be completed. Thus, the IBC prescribes a maximum of 270 days.
The Debt Recovery Tribunals (“DRTs”) will adjudicate the insolvency resolution process (IRP) of individuals and partnership firms. Any person aggrieved by the order of DRT may appeal to the Debt Recovery Appellate Tribunal (DRAT). The National Company Law Tribunal (the “NCLT”) have jurisdiction over the corporate insolvency resolution process (CIRP) for companies and Limited Liability Partnerships. Any person aggrieved by the order of the NCLT may appeal to NCLAT within 30 days of the order. An appeal from the order of the respective appellate tribunals may be filed before the Supreme Court of India.
In his Union Budget speech of 2014-15, the finance minister had announced the development of an effective bankruptcy code for easy exit. Following this announcement, the Viswanathan Committee was set up on August 22, 2014, to study the corporate bankruptcy legal framework in India.