One of the Easiest Chapter to be approached when your are attempting to take Set C Paper 4 exam of SPOM Module for CA Inter Student. The benefit of doing this chapter is you will not have to worried about doing it again when you are preparing for SET A exam where this chapter is again introduced as Mandatory, further if you whish to Pursue your career in insolvency its better to plan ahead.
Important Definition for SPOM MCQ
| Corporate Debtor | Any person that owes a debt to another and committed Default, Example The Corporate Entity himself will be the corporate Debtor . |
| Financial Creditor | Any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to. Example Bank or Financial Institution |
| Operation Creditor | Any person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred, Example : Those entity or person from Good or Service have been received. |
Important Point and Questions
| Q1- Under how many days does the corporate debtor should inform the Operational creditor the existence of dispute or information regarding payment – Ans 10 Days by sending Attested Copy |
| Q2- The Adjudicating authority shall within (Ans14 Days) of the receipt of application admit the application and communicate the same to the applicant in case of any discrepancy 7 days will be given to rectify the same. |
| Q3- An Insolvency professional shall be disqualified from appointment if he is an employee or proprietor or a partner of legal or consulting firm that has had any transection with the corporate debtor amounting to five percent or more of the gross turnover of such firm in the last three financial year or an employee or proprietor or a partner of the firm of auditor or secretarial auditor or cost accountant for last three year |
| Q4- To remove the Interim Resolution professional the COC shall vote (by 66% or more ) for the same in the first meeting held withing 7 days of the constitution of COC and forward the name to the Adjudicating authority (AA) shall forward the same to the board who shall confirm the same within 10 days. The AA shall direct the IRP to continue as Resolution Profession until the confirmation is received. |
| Q5 – An Appeal against the order of NCLT can be passed under How many days – 30 Days form the date of the order to NCLT |
| Q6 – Moratorium Period shall be declared by AA and shall not be for Essential Goods |
| Q7 – IBC is not applicable on Financial Institution however it shall be applicable on NBFC having asset of 500 crore or more |
| Q8 – The Information Memorandum is prepared by the The Resolution Professional |
| Q9- All decision of the COC shall be taken by the vote of 51%. |
| Q10 – Operational Creditor can alter claims within 14 days of submission to liquidator |
| Q11- Information or documents to be provided while filing an application for CIRP- copy of certificate from financial institution (if available ) |
| Q12- Order or priority for payment of insolvency resolution process cost and expenses in connection to going concern. Ans The costs related to the insolvency resolution process are given the highest priority and are to be paid in full. These costs include the fees of insolvency professionals and any other expenses incurred during the resolution process. |
| Q13- How many voting required for withdrawal of application- Ans 90% |
| Q14- Date of Insolvency Commencement date- Ans Date of acceptance of application by NCLT |
| Q15- An insolvency professional shall make a public announcement immediately on his appointment as an interim resolution professional. Explanation: ‘Immediately’ means not later than three days from the date of his appointment. |
| Q16- IBBI to confirm new IP within 10 days of AA request if not approved deemed approved. |
| Q17- First meeting held withing 7 days of the constitution of COC |
| Q18- Period of completion of insolvency process – 180 days + Extension 90 Days (Total shall not exceed 330 days) |
| Q19- Meeting of COC shall be called by giving notice of not less than 5 days which may be reduce but not less than 24 Hours |
| Q20 – CIRP to commence from the date of admission of application by AA – Insolvency Commencement Date |
More Question for Paper 4 will be added soon..
