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      Question

      A preference shall be deemed to be given at a relevant

      time under the IBC if it is given to a related party, during the period of________________________
      A Two preceding financial year Correct Answer Incorrect Answer
      B Two preceding calendar year Correct Answer Incorrect Answer
      C Two years preceding the insolvency commencement date Correct Answer Incorrect Answer
      D Two years after the conclusion of the insolvency process Correct Answer Incorrect Answer
      E Such number of years as the Board may specify from time to time Correct Answer Incorrect Answer

      Solution

      Two years preceding the insolvency commencement date, Explanation: Section 43-Preferential transactions and relevant time: (4) A preference shall be deemed to be given at a relevant time, if— (a) it is given to a related party (other than by reason only of being an employee), during the period of two years preceding the insolvency commencement date; or (b) a preference is given to a person other than a related party during the period of one year preceding the insolvency commencement date.

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