New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Question

    When can a creditor, member, or partner of a corporate

    debtor apply to the Adjudicating Authority to declare undervalued transactions void and reverse its effects, as per the Insolvency and Bankruptcy Code??
    A If the transaction involves a related party Correct Answer Incorrect Answer
    B If the transaction has taken place without proper documentation Correct Answer Incorrect Answer
    C If the liquidator or resolution professional has reported the transaction Correct Answer Incorrect Answer
    D If the liquidator or resolution professional has not reported the transaction Correct Answer Incorrect Answer

    Solution

    IBC If the liquidator or resolution professional has not reported the transaction, Section 47 (1) Where an undervalued transaction has taken place and the liquidator or the resolution professional as the case may be, has not reported it to the Adjudicating Authority, a creditor, member or a partner of a corporate debtor, as the case may be, may make an application to the Adjudicating Authority to declare such transactions void and reverse their effect in accordance with this Chapter.

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