General Knowledge · Economic Legislation
The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 marked a paradigm shift in debtor-creditor relations in India. Which of the following legal provisions is correctly stated under the regulatory framework for stressed assets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Operational Creditors are given priority over Financial Creditors in the waterfall mechanism under Section 53 of the IBC.
- 2The Pre-packaged Insolvency Resolution Process (PIRP) is exclusively available to large listed corporate entities with a minimum turnover of 5000 crore rupees.
- 3Under Section 29A of the IBC, certain persons including undischarged insolvents and willful defaulters are disqualified from submitting a resolution plan.✓
- 4The IBC mandates that once a CIRP is initiated, the CoC has a maximum of 90 days to finalize a plan, failing which assets are automatically nationalized.
Correct answer
Under Section 29A of the IBC, certain persons including undischarged insolvents and willful defaulters are disqualified from submitting a resolution plan.
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