Consider the following statements regarding the Insolvency and Bankruptcy Code, 2016:1. If the Resolution Plan fails to be approved by the Committee of Creditors within 270 days, the process of liquidation kicks in automatically.2. The proceeds of liquidation are distributed among various creditors equally.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?

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Consider the following statements regarding the Insolvency and Bankruptcy Code, 2016:

1. If the Resolution Plan fails to be approved by the Committee of Creditors within 270 days, the process of liquidation kicks in automatically.

2. The proceeds of liquidation are distributed among various creditors equally.

Which of the statements given above is/are correct?

a)
1 only
b)
2 only
c)
Both 1 and 2
d)
Neither 1 nor 2

Correct answer is option 'D'. Can you explain this answer?

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Consider the following statements regarding the Insolvency and Bankrup...

The Insolvency and Bankruptcy Code, 2016, is aimed to create a single, comprehensive framework that would provide a time-bound and cost-effective process for resolving insolvency and bankruptcy.
If either the Resolution Plan is rejected by the Committee of Creditors (CoC), or fails to be approved by it within 330 days, the process of liquidation kicks in automatically.
The proceeds of liquidation are distributed among secured creditors, unsecured creditors, government dues, preferential shareholders, etc., in the respective order of priority.

Answered by Notes Wala · View profile

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Consider the following statements regarding the Insolvency and Bankruptcy Code, 2016:1. If the Resolution Plan fails to be approved by the Committee of Creditors within 270 days, the process of liquidation kicks in automatically.2. The proceeds of liquidation are distributed among various creditors equally.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?

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