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Question

An application for initiating pre-packaged insolvency resolution process under the IBC, 2016 _____________________

A Must be made in respect of a corporate debtor who chooses for going in for pre-packaged insolvency resolution process Correct Answer Incorrect Answer
B May be made in respect of a corporate debtor classified as a micro, small or medium enterprise Correct Answer Incorrect Answer
C May be made in respect of a corporate debtor, who commits a default referred to in section 4 Correct Answer Incorrect Answer
D Either (a) or (b) Correct Answer Incorrect Answer
E Either (b) & (c) Correct Answer Incorrect Answer

Solution

Application for initiating pre-packaged insolvency resolution process may be made against the corporate debtor, who commits a default as laid down u/s 4 relating to default amount, classified as a micro, small or medium enterprise under section 7(1) of the Micro, Small and Medium Enterprises Development Act, 2006 • Conditions for initiating pre-packaged insolvency resolution process are: • it has not undergone pre-packaged insolvency resolution process or completed corporate insolvency resolution process, as the case may be, during the period of 3 years preceding the initiation date; • it is not undergoing a corporate insolvency resolution process; • no order requiring it to be liquidated is passed under section 33; • it is eligible to submit a resolution plan under section 29A • financial creditors of the corporate debtor, not being its related parties, representing not less than 66% in value of the financial debt due to such creditors, should proposed the name of the insolvency professional to be appointed as resolution professional for conducting the pre-packaged insolvency resolution process have approved such proposal in such form as may be specified

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