The Insolvency and Bankruptcy Code, 2015

1) Which of the following is not one of the main objectives of this code?

a) Speedy winding up of insolvent companies.
b) Releasing the list of wilful defaulters in public domain.
c) Lowering Non-Performing Assets (NPA).
d) Redeploying capital productivity.

2) Which of the following constitutes the "stressed assets"?

i) Gross bad loans.
ii) Advances whose terms have been restructured.
iii) Written-off accounts

a) i and ii only
b) i and iii only
c) i, ii and iii
d) i only

3) Which of the following adjudicating authorities would adjudge an entity as bankrupt?

a) National Company Law Tribunal
b) Debt Recovery Tribunal
c) Sick Industrial Companies Tribunal
d) Both a and b

4) Which of the following is not the significant feature of this code?

a) Penal provision for defaulters.
b) Consolidation of existing laws.
c) Time frame for resolving insolvency.
d) Setting up necessary institutional infrastructure.

5) Which of the following laws deals with insolvency of companies?

a) Sick Industrial Companies Act.
b) The Recovery of Debt Due to Banks and Financial Institution Act.
c) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002
d) All of the above.

6) The code seeks to consolidate and amend laws relating to reorganization and insolvency resolution of:

i) Corporate persons
ii) Partnership firms
iii) Individuals

a) i and ii only
b) i, ii and iii
c) i and iii only
d) i only

Answers:

1) b
2) c, stressed assets rose to 14.5% of banking sector loan at the end of December 2015
3) d
4) a
5) d
6) b

Reference : PRS Link

Note : Non Performing Assets(NPA) in banking parlance refers to the loans where borrowers have defaulted on repayments.