Banking · Insolvency and Bankruptcy Code (IBC)
Consider the following statements regarding the Insolvency and Bankruptcy Code (IBC), 2016: Statement I: A Financial Creditor can initiate the Corporate Insolvency Resolution Process (CIRP) only if the default amount is at least 1 Crore rupees as per current government notifications. Statement II: During the Moratorium period under Section 14, the bank can still initiate or continue proceedings under the SARFAESI Act against the corporate debtor. Statement III: The Committee of Creditors (CoC) consists only of Financial Creditors, and Operational Creditors have no voting rights regardless of their debt size. Statement IV: The resolution plan must provide for the payment of debts to operational creditors in a manner specified by the Board, which shall not be less than the amount payable to them in liquidation. Statement V: If no resolution plan is approved by the CoC within the maximum period allowed, the NCLT must pass an order for liquidation. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct
- 2Only III and IV
- 3Only I, II, V
- 4Only I, III, IV, V✓
Correct answer
Only I, III, IV, V
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