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

    Question

    When can liquidation process of the corporate debtor be

    initiated as per section 33 of IBC?
    A If Adjudicating Authority does not receive the resolution plan before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the CIRP Correct Answer Incorrect Answer
    B If Adjudicating Authority does not receive the resolution plan after the expiry of the insolvency resolution process period and the maximum period permitted for completion of the CIRP Correct Answer Incorrect Answer
    C Rejection of the resolution plan by the Adjudicating Authority under section 31 for the non-compliance of the requirements specified therein Correct Answer Incorrect Answer
    D Both (a) & (c) Correct Answer Incorrect Answer

    Solution

    IBC Section 33-Initiation of liquidation- (1) Where the Adjudicating Authority— (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall—(i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered.

    Practice Next