Q. Consider the following statements regarding the Insolvency and Bankruptcy Code (IBC):
Select the incorrect answer using the code given below:
Q. Consider the following statements regarding the Insolvency and Bankruptcy Code (IBC):
Select the incorrect answer using the code given below:
The correct option is B 2 only
Explanation:
Statement 1 is correct:
The Insolvency Professionals: These professionals administer the resolution process, manage the assets of the debtor, and provide information for creditors to assist them in decision making.
Insolvency Professional Agencies: Insolvency professionals are registered with insolvency professional agencies. The agencies conduct examinations to certify insolvency professionals and enforce a code of conduct for their performance.
Information Utilities: Creditors report financial information of the debt owed to them by the debtor. Such information includes records of debt, liabilities, and defaults.
Statement 2 is incorrect:
Adjudicating authorities: The proceedings of the resolution process are adjudicated by the National Companies Law Tribunal (NCLT), for companies; and the Debt Recovery Tribunal (DRT), for individuals. The duties of the authorities include approval to initiate the resolution process, appoint the insolvency professional, and approve the final decision of creditors.
Insolvency and Bankruptcy Board: The Board regulates insolvency professionals, insolvency professional agencies, and information utilities set up under the Code.
Explanation:
Statement 1 is correct:
The Insolvency Professionals: These professionals administer the resolution process, manage the assets of the debtor, and provide information for creditors to assist them in decision making.
Insolvency Professional Agencies: Insolvency professionals are registered with insolvency professional agencies. The agencies conduct examinations to certify insolvency professionals and enforce a code of conduct for their performance.
Information Utilities: Creditors report financial information of the debt owed to them by the debtor. Such information includes records of debt, liabilities, and defaults.
Statement 2 is incorrect:
Adjudicating authorities: The proceedings of the resolution process are adjudicated by the National Companies Law Tribunal (NCLT), for companies; and the Debt Recovery Tribunal (DRT), for individuals. The duties of the authorities include approval to initiate the resolution process, appoint the insolvency professional, and approve the final decision of creditors.
Insolvency and Bankruptcy Board: The Board regulates insolvency professionals, insolvency professional agencies, and information utilities set up under the Code.
