Insolvency professional MCQ

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Q1) If a financial creditor files a Section 7 application with only banker’s book entries, is it valid under the Regulations?
No, a court decree is mandatory
Yes, Regulation 2A permits it
Yes, if endorsed by CoC
No, unless accompanied by Form GSTR

Q2) What is the format and medium prescribed under Rule 10(4) for bulky submissions where e-filing is unavailable?
Physical files only
Zip files by email
Scanned PDFs on CD or USB
Cloud folder link to Tribunal

Q3) Can a real estate allottee who holds only one unit file an individual application under Section 7?
Yes, if payment was made through cheque
No, unless the numerical threshold is met
Yes, with RERA approval
Yes, if builder is a corporate debtor

Q4) Which rule governs the fee payable and filing procedure for a Section 7 application?
Rule 8
Rule 6
Rule 10
Rule 12

Q5) Which of the following is not a requirement under Rule 4 for a Section 7 application?
Form 1
Records and documents as per Regulations
Form 2
Certificate from an operational creditor

Q6) How does Regulation 2(1)(a) define “applicant” for the purposes of Section 7?
Only financial creditors holding over ₹1 crore
Any person authorized by the IBBI
Person(s) filing an application under Sections 7, 9, or 10
Only IRP or RP appointed by CoC

Q7) A financial creditor submits Form 1 under Section 7, but forgets to enclose the IRP’s eligibility certificate under Rule 9(2). The AA admits the application. Later, this omission is discovered. What is the most likely consequence?
Application is treated as void ab initio
The IRP is replaced by IBBI
The admission order is likely to be recalled as a jurisdictional error
The omission is condoned as curable

Q8) Which of the following is insufficient by itself as proof of default under Section 7 read with Regulation 2A?
Banker’s Book certified entry
Tribunal order with no appeal pending
GSTR-1 returns of the applicant
Court decree confirming liability

Q9) Can an assignee of a financial contract initiate CIRP under Section 7, and under what condition?
No, assignees have no locus
Yes, without limitation, as long as contract exists
Yes, provided they submit assignment deed and supporting documents
Only if they are a scheduled bank

Q10) Which of the following does not constitute a valid “financial creditor” under Section 7?
Bank with a sanctioned loan
Bondholder with ISIN-tracked holdings
Decree holder under RERA
Debenture trustee

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