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      Question

      What is the primary approach or philosophy behind the

      IBC?
      A To immediately punish the promoters of defaulting companies Correct Answer Incorrect Answer
      B To try to save and revive the business first, and liquidate it only as a last resort Correct Answer Incorrect Answer
      C To recover money exclusively for the top secured financial creditor Correct Answer Incorrect Answer
      D To bypass all legal tribunals and auction assets directly Correct Answer Incorrect Answer
      E To transfer all corporate assets directly to the central government Correct Answer Incorrect Answer

      Solution

      The primary philosophy of the Insolvency and Bankruptcy Code (IBC) is focused on value preservation and "rescue" of the corporate debtor. During the Corporate Insolvency Resolution Process (CIRP), stakeholders attempt to restructure and revive the company. Liquidation is considered a strict, last-resort option only when revival is not possible or feasible

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