Consider the following statements with regard to The Insolvency and Bankruptcy Code 2015 1 According...........

Economic Affairs Types of Banks and Banking

Consider the following statements with regard to The Insolvency and Bankruptcy Code, 2015

1.According to this code the process of insolvency resolution of companies and individuals will have to be completed within one year.

2.The Code clearly specifies the manner in which the Insolvency and Bankruptcy Fund will be used

Which of the given statement/statements is/are correct?

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Types of Banks and Banking

Prepare through Micro-courses

Try Now

Explanation:

Neither 1 nor 2

According to this code, the process of insolvency resolution of companies and individuals will have to be completed within one year: This statement is incorrect. The Insolvency and Bankruptcy Code (IBC) does not specify a fixed timeline of one year for the completion of the insolvency resolution process. The resolution process is expected to be completed within a time frame specified in the code, but it may vary depending on the complexity of the case.

The Code clearly specifies the manner in which the Insolvency and Bankruptcy Fund will be used: This statement is incorrect. While the Insolvency and Bankruptcy Code (IBC) establishes the Insolvency and Bankruptcy Fund, it does not specify the detailed manner in which the fund will be used. The operational details and rules regarding the utilization of the fund are determined by the regulations and guidelines framed by the authorities under the IBC.