Insolvency professional MCQ

Pocket friendly 7,000+ Insolvency professional MCQs. BUY NOW

FREE practice MCQs

Q1) Which of the following documents is mandatory to be submitted along with a Section 7 application by a financial creditor?
Copy of audited balance sheet of corporate debtor
Written communication from a proposed interim resolution professional (Form 2)
Resolution plan
Certificate of incorporation of the financial creditor

Q2) Under Rule 4(1) of the Adjudicating Authority Rules, which form is prescribed for initiating CIRP by a financial creditor?
Form 2
Form 3
Form 1
Form A

Q3) According to Regulation 2A, which of the following is not an acceptable evidence of default by a financial creditor?
Certified copy of entries in the bankers’ book
Order of a court adjudicating non-payment
Loan sanction letter from the bank
Tribunal order with no pending appeal

Q4) What is the minimum requirement for allottees under a real estate project to initiate CIRP under Section 7?
Five percent of total allottees
At least 50 allottees jointly
At least 100 allottees or 10% of the total, whichever is less
Any single allottee with a registered agreement

Q5) What is the prescribed time for the Adjudicating Authority to ascertain default under Section 7?
7 days
10 days
14 days
30 days

Q6) What is the effect of a pending disciplinary proceeding against the proposed IRP at the time of filing?
Application may still be admitted
Application will be rejected
AA may adjourn the matter for resolution
IBBI will appoint a new IRP

Q7) What action must the financial creditor take immediately after filing the Section 7 application?
Pay advance CIRP costs to the AA
Serve a copy to the CoC
Dispatch a copy to the corporate debtor’s registered office
Submit Form G to the Board

Q8) If the Adjudicating Authority fails to pass an order within 14 days of filing, it must:
Consider application as deemed admitted
Provide notice to the corporate debtor
Record reasons for delay in writing
Reject the application

Q9) If a Section 7 application is found incomplete, what is the prescribed remedy?
File a new application
Rectify within 7 days from receipt of AA notice
Approach the NCLAT for permission
Resubmit after 30 days

Q10) Under what condition can a Section 7 application be withdrawn?
At any time after CIRP commences
Before admission, on applicant’s request
Only with CoC's majority vote
Only with approval of IBBI