(9) Eco Law MCQ Index Nov 2023 ca finals.pdf

MCQ INDEX CA Final Economic Law MCQ Index (Telegram channel: CA Rohit Chipper)
Prepared By Ramu
MCQ INDEX
Features
Caution (Instruction to use)
How to use this index?
Sr.No. Particulars Pg no.
1 Introduction 1
2 Competition 2-9
3 RERA 10 - 17
4 IBC 18 - 26
5 PMLA 27 - 33
6 FEMA 34 - 43
7 Benami 44 - 49
8 SARFAESI 50
- Includes all MCQ from case studies issued by ICAI (Past yr paper, MTPs, Case study digest & Student journal)
- All Qns are segregated according to relevant law/ chapter and sorted A-Z.
- I would suggest to first use the descriptive question index to find the repeated case study/ qns and if you find any repeated case study then its
probable that its MCQ will also repeat so, you can refer that and there is no need to use this index.
- If you find that you have time in exam hours then only use this MCQ index. In last few attempts I have observed that economic law paper is
coming lengthy and if you decides to use this index then do your cost benefit analysis as an MCQ will carry 2 marks only and searching every MCQ
will take 15-20 minutes if you have practiced earlier on how to use this index.
1. Carry this index, case study compilation and case study digest in exam. (u can find all case study compilation in my telegram channel).
2. Read the MCQ and Identify the Act from where the MCQ is asked.
3. Come to this index, go to relevant Act and find the MCQ by matching the words (All Qns are sorted A-Z).
4. Once you find from MCQ, In second column you can see the answer. No need to refer the past case studies.
Telegram Channel >>> https://t.me/carohitchipper
- The answers in this index is not updated as per the amendments. If you are not sure then do refer the relevant provision from study mat before
answering.
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COMPETITION CA Final Economic Law MCQ Index (Telegram channel: CA Rohit Chipper)
COMPETITION
COMPETITION
Questions Answer
Abuse of dominance by a dominant enterprise arises (a) if the enterprise imposes unfair or discriminatory condition in purchase or sale
of goods or service
Abuse of dominance does not arise if . (c) the enterprise does not indulge in practices resulting in denial of market access.
Agreement’ under the Competition Act, 2002 includes any arrangement or understanding or action in
concert:
(D) If it is whether or not, in formal or writing or whether or not enforceable by
legal proceedings.
All the five Companies including Shroff Ltd., twice raised the price of cement by a total of 3.5%. The All
India Builders Association filed a complaint with CCI against it. Determine the correct statement according
to the provisions of the Competition Act, 2002?
(c) The rise in price by all the five companies will adversely affect competition in
India and is void.
All the mango juice manufacturing units in Bihar, through their trade association, entered into an
understanding for price-fixing with the sole purpose of defeating competition during the time of scarcity.
However, the said understanding was not in writing and also not intended to be enforced by legal
proceedings. The oral understanding entered into by the trade association of Bihar in the aforesaid case is;
(c) A valid Agreement and shall be presumed to have an appreciable adverse effect
on competition.
An agreement which restricts competition in the relevant market is known as: (d) Anti-Competitive agreement
An Association of manufacturers of die cast products will not be considered as a cartel if the objective of
the association is to
(C) represent the industry issues on a collective basis to the Government
Any acquisition between the URF and the three private limited companies, whose shares are being
acquired, should jointly have, in India:
The assets of the value of more than rupees 2,000 crore or turnover more than
rupees 6,000 crore
Any agreement under the Competition Act, 2002 shall be presumed to have an appreciable adverse effect
on competition, which:
(D) All of the above
As per the Competition Act, 2002 ‘Agreement’ includes any arrangement or understanding or action in
concert:
(c) Whether or not, such arrangement, understanding or action is formal or in
writing; or whether or not such arrangement, understanding or action is intended
to be enforceable by legal proceedings.
As per the provisions of the Competition Act, 2002, the agreement entered into by NHPL with the local
suppliers near Bhilwara will be termed as:
Refusal to Deal
Assuming that iPhone is not purchased by Miss Rekha from the Mapple store. Can she file a case, in the
forum under the Competition Act 2002?
(c) Yes, as Ms. Rekha has used the iPhone and availed the cellular services, so she
indirectly gets affected
Assuming that the acquisition of another real estate company by GHPL happened in the year 2019, what is
the maximum amount of assets and revenue that can be acquired by GHPL for being accepted from the
provisions of Section 5 of the Competition Act, 2002
(C) Post-acquisition (incl. GHPL) value off `1000 crore or turnover of `3000 crore of
the target entity.
Assuming that the proposed combination is covered under Section 5 of the Competition Act, 2002, and
GHPL gave notice to the Commission on 15 th May, 2018, what is the latest date by when the combination
will come into effect (no orders have been passed by the Commission)?
(C) 15 th May 2019.
Assuming the iPhone is not purchased by Miss Rekha from the Mapple store. Can she file a case, in the
forum under the Competition Act 2002?
(d) Yes, not only Ms. Rekha but any person can file such a case
At a port all the dumper owners formed an association which along with its members decided the rates at
which the dumper services for unloading the cargo would be provided to the licensed stevedores at the
port. Whether association and its members is a cartel?
(a) Yes, it is a cartel;
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Board of Directors of RBL decided to go for public issue and listing of its equity shares, largely for business
expansion, initially with setting up a new large-scale mango juice preparation plant. In the context of
shares, which one of the following statements is correct under the Competition Act, 2002?
(d) Shares shall be considered as “goods” after allotment.
By the decision of which authority, Mrs. Urmila would have been convicted with imprisonment for 2.5
years under the provisions of the Competition Act, 2002?
(b) Chief Metropolitan Magistrate
Can SCL assume the position of the consumer for the purpose of competition laws? (d) Yes
Can the price of ` 700 and 400, respectively charged by ACS be considered as predatory pricing? (A) No, because the price charged recovers the costs incurred.
Can the price of 700 and 400, respectively charged by ACS be considered as predatory pricing? No, because the price charged recovers the costs incurred.
CCI cannot make enquiry into alleged contravention of the provisions in Section 3 and 4 . (a) on unfounded rumours
Considering the nature of the operations of LPPL and HLL, what is the requirement of giving notice
regarding the• proposed combination as per Form Il as specified in the Schedule II to the Competition
Commission of India (Procedure in regard to the transaction of business relating to combinations)
Regulations, 2011 ?
(C) Optional, if the combined market share after such combination is more than
15% of the market.
Considering the provisions of the Competition Act 2002, choose the correct statement out of the
following.
(b) Exclusive agreement between e-commerce platform and Gizmo Limited is not
violating section 3.
Decision of North West Agro Limited, on part of Sun Sugar Limited; not to sell more than 2 kg of sugar per
purchase can be categorized as;
(d) None of the above
Do you agree with the views of the management of ISL with regards to the requirement of giving notice to
the commission, disclosing the details of the proposed combination?
(d) No, because giving notice is mandatory within 30 days of the date of execution
of agreement for acquisition
Does the contract entered into by DMPL with its distributors cause an appreciable adverse effect on
competition under the Competition Act, 2002?
(A) Yes, since this is in the nature of a tie-in arrangement
Dominance under the Act should be determined on the basis of . (d) ability to operate independently of competitive forces in the relevant market
DOU was in the market of provision of services of allocation of dumpers which was ------------------. (b) not the relevant market;
DRPL had kept a condition in front of the Exhibitors who were Single Screen Theatres to purchase rights of
exhibiting both the movies ‘Hero no 1’ to be released on 25th December 2015, and ‘Love Tales’ to be
released on 14th February 2016. Though there was no written document in that regard, some Single
Screen Theatres accepted the condition and purchased rights of both the movies. Therefore, the
understanding is:
(b) Is an Anti-competitive agreement
Due to what reason it can be said that combination has taken place between Malhotra Hospital Ltd.
(Malhotra Group) and Life & Care Hospital Ltd. as per the provisions of the Competition Act, 2002?
(a) Malhotra Hospital Ltd. has acquired equity shares in excess by 23% in Life &
Care Hospital Ltd. and also the assets of Life & Care Hospital Ltd. are excess in value
by ` 50 crores, from prescribed limits of exemption, respectively, due to which
combination has taken place between them.
Given the facts that XMC Pvt. Ltd. and M/s Ratan Lal & Sons, in connivance with each other, have delayed
the delivery of the booked passenger car to Mr. Nazir and revised the price of the said car, it cannot be a
case of cartelization. What would be the possible reason?
(b) The fact does not reveal any agreement of XMC Pvt. Ltd. with other car
manufacture in fixing the price
How many members of CCI in excess attended the meeting from the required quorum and how many
further name(s) could have been recommended by the Selection Committee for filing up the vacancy in
the office of chairman of the CCI?
(d) Two members of CCI in excess attended the meeting from the required quorum
and further one more name could have been recommended by the Selection
Committee.
How many number of days notice is to be given to CCI by Mr. Left while an enterprise proposes to enter
into a combination, as per the Competition Act, 2002?
(d) 30
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If Central Government issues expulsion order to Mr. Sharp, the order: (C) is not valid and can be challenged.
If the Commission is of the view that it is expedient to recover penalty imposed under the Competition Act
as per the provisions of the , it is empowered to make a reference to this effect to the concerned
(b) Income-tax Act;
If the resolution plan as received from WDPL by the insolvency professional contained a provision for
combination, under the provisions of the Competition Act, 2002, then who is required to seek approval WDPL to seek the prior approval from the CCI.
If you think delineation of relevant market is necessary to examine the fact of the case, then what should
be the relevant product market in this case?
(a) Market for passenger car
If you think that XMC Pvt. Ltd. has abused its dominant position, then which of the following conduct of
XMC Pvt. Ltd. is abusive in terms of Section 4 of the Competition Act, 2002?
(d) None of the above.
In case the Competition Commission of India ordered that Mr. Nazir should approach in the appropriate
forum, what would be your reaction?
(a) The Competition Commission of India is rightly ordered so because the
allegations of Mr. Nazir do not raise any competition concerns in any market.
In how many days the URF shall be required to give notice to the Competition Commission of India,
disclosing the details of the proposal relating to the prospective merger of three companies with the URF
Within 7 days of the approval of the proposal relating to the merger by the Board
of Directors of URF
In terms of the decision of Northwest Agro Limited, Sun Sugar Limited, through some agreement, asked all
the shopkeepers and stores, who sold the ‘Meetha’ brand of sugar, not to sell more than 2 kilograms of
sugar per purchaser. Such agreement can be categorised as:
(b) Exclusive distribution agreement
In the case of Aamnay Ltd.'s appeal, which of the following statements is true regarding the authority of
the NCLAT?
NCLAT has the power to adjudicate on claim for compensation arising from the
findi ngs of CCI.
In the given case, if the formation of such cartel was being informed to the Competition Commission of
India, then the Commission is empowered to impose a penalty of;
(c) Higher of (a) & (b)
[(a) Upto three times of its profits for each year of the continuance of such
agreement on each member of the cartel.
(b) Ten percent of its turnover for each year of the continuance of such agreement
on each member of the cartel]
In the given case, which one out of the following mentioned forms shall be filed under section 6 of the
Competition Act 2002 with the Competition Commission of India?
(b) Form II
Is charging ` 999 for plan AMC@999, can be considered a predatory price? (d) Yes, because the price charged is less than its cost as well.
Is it mandatory for the DG to appear before the Commission in person? (b) No, it is not mandatory;
It seems that three companies i.e. Sakshi Sugar Mill Company, Triveni Company, and Amar Sugar Company
are involved in some sort of arrangement within themselves for sugar mill tenders and acquisition process.
In what perceptive will you view this transaction?
(b) The agreement between the companies can be viewed as an exclusive
agreement, adversely affecting the process and manipulating the bidding
completely.
Let Mr. Nazir approached the Competition Commission India for his grievances and you are the person in (b) Whether XMC Pvt. Ltd. and M/s Ratan Lal & Sons are placed at vertical level.
Let, Mr. Nazir approached the Competition Commission India for his grievances and you are the person in
the Commission to take a decision in the matter and according to you the matter pertains to abuse of
dominance. What would be your sequence of analysis of the matter?
(c) Whether XMC Pvt. Ltd. falls under the definition of enterprise as defined under
the Competition Act, 2002
(d) Define the relevant market where XMC Pvt. Ltd. is operating
(a) XMC Pvt. Ltd. is dominant or not
(b) Whether the alleged conduct is abusive under section 4 of the Competition Act,
2002
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Lokesh tried to beat the competition sometimes even by selling some of the products at prices lesser than
costs. The sale of goods or provision of services, at a price below the cost, as may be determined by the
regulations, of production of the goods or provision of services, with a view to reduce competition or
eliminate the competitors termed as:
Predatory Price
Mr. Nazir stated that “it is not just an individual issue but it involves the larger interests of car buyers, who
do not have any recourse to effective mechanism against the abuse of dominant position by such auto
manufacturers for imposing anti-competitive terms on the buyers”. What would be his prime intention in
stating so?
(c) The conduct of car manufacturer is not conducive to the market as it affects
larger consumers’ interest.
Mr. Nazir submitted that XMC Pvt. Ltd. is a dominant market player in the relevant market, if you agree
with his submission, what would be your reasoning?
(d) Consumers are dependent on XMC Pvt. Ltd.
Mr. Raju decided to resign from CCI and therefore, he has to submit notice of his resignation to: Central Government.
Mr. Right has decided to resign from CCI and therefore he has to submit notice to the: (d) Central Government
Mr. Sharp cannot be removed from the Competition Commission of India by the Central Government, if
he:
(A) has engaged at any time, in any paid employment.
Mr. Sharp shall not for a period of years from the date on which cease to hold office in the Competition
Commission of India, accept any employment in, or be connected with the management of administration
of, any enterprise which has been a party to a proceeding before the Competition Commission of India.
(B) 2
Normally every company, while giving the distributorship, put some reasonable conditions. Which among
the following may be treated as reasonable conditions:
(c) To sale the bike at predetermined price fixed by the JBL
Notwithstanding anything contained in sub-regulation (2), the Commission may, after recording reasons,
invalidate a notice filed under regulation 5 or regulation 8 of The Competition Commission of India
(Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 as
amended when it comes to the knowledge of the Commission that such notice is not valid as per sub-
regulation (1) and, in that case, the Secretary shall convey the decision of the Commission to the parties to
the combination within .
(C) Seven working days of such decision of the Commission.
On which date, the combination of SHL and VPL, shall be deemed to have been approved by the
commission?
(b) 18th October
On which day, the combination of URF and the prospective merger of all the three companies shall come
into effect
On 7th October, 2022 when the CCI approved the modified proposal of
combination
Operate independently of competitive forces prevailing in the relevant market is-------------- component. (A) Abuse of Dominance
Pandu wanted to provide a free tablet for every student who undergoes a course with ACS and wanted to
ensure that the LMS platform is accessible only on the tablet provided by the Company and cannot be
accessed through the web and ACS refused to pr ovide the LMS without the tablet. What is the nature of
this arrangement? Tie in agreement
Pandu wanted to provide a free tablet for every student who undergoes a course with ACS and wanted to
ensure that the LMS platform is accessible only on the tablet provided by the Company and cannot be
accessed through the web and ACS refused to provide the LMS without the tablet. What is the nature of
this arrangement?
(D) Tie in agreement
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Predatory pricing arises when an enterprises . (d) prices its product below its cost of production with a view to reducing
competition or eliminating competitors
RBL also entered into a joint venture agreement with Raman Pulp Private Limited (RPPL) of Punjab to
ensure the continuous supply of mango pulp and some other raw materials to its mango juice
manufacturing unit. A Joint Venture agreement between RBL and RPPL is
(b) Not to be considered anti-competitive, since it enhanced the production
efficiency of RBL
Regarding DRPL it can be said that: (c) DRPL enjoys a dominant position in the market, as it is the largest producer in
the Industry.
Regarding the application forwarded by seven cylinder manufacturers for a reduction in penalty to CCI,
pick the option that contains incorrect statements out of those given below;
i. Lesser penalty shall be imposed by the Commission only in respect of a producer, seller, distributor,
trader, or service provider included in the cartel, who first made the full, true, and vital disclosures under
this section.
ii. Lesser penalty may be revoked by the CCI if the person making the disclosure does not continue to
cooperate till the completion of the proceedings
iii. Lesser penalty may be imposed by the CCI even if the disclosure is made after the receipt of the report
of investigation directed under section 26.
(d) all i, ii, and iii
Relevant market is made up of . (c) relevant geographic market and relevant product market
Relevant product market will have to reckon (b) physical characteristics or end-use of goods
SCPL decided to go for public issue and listing of its equity shares, largely for business expansion, initially
with setting up a new large scale RMC plant. In the context of shares, which one of the following
statements is correct under the Competition Act, 2002?
(d) Shares shall be considered as “goods” after allotment.
Selling of bike along with compulsion to buy insurance from the group insurance company and that too on
finance / loan, are an example of:
(c) Tie in arrangement
South West Agro Limited and North West Agro Limited will be considered as group because, these are in
capacity of
(d) All of above
[(a) Exercise 26% or more of the voting right of Moon Sugar Limited
(b) Appoint more than 50% of members of board of directors in the sun limited (c)
Control the management or affairs of the sun Limited]
Suppose there are 3 bidders X, Y, & Z in a tender process initiated for MSEB. X & Y bidders were removed
by neeraj unethically showing them incompetent to make bid in the tender process for supply of goods to
MSEB for its project. This relates to-
b. Abuse of dominant position
Takeover (acquisition) of Eastern Tea limited by Eastern limited, will be considered as combination if (C) Turnover of enterprise created after merger is more than `6,000 crore;
Takeover (acquisition) of Sun Sugar limited by North West Sugar limited, will be considered as
combination if
(c) Turnover of enterprise created after merger is more than INRs 3000 crores
The agreement entered into by TPL with the local suppliers near Banaskatha will be termed as _. (c) refusal to deal
The agreement is executed among SCPL and RSPL on 20 th October 2020, can be categories as (c) Refuse to deal agreement
The CFO of GHPL seeks your views to understand which of the following would not be a violation of the
provisions of the Competition Act, 2002?
(C) Agreement for Protection of rights under the Designs Act, 2000.
The chairperson and other members of the CCI office shall be appointed by (a) Central Government
The chairperson and other members of the CCI office shall be appointed by:- (a) Central Government and shall hold the office for a term of five years or till he
has attained the age of sixty-five years.
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The Commission is empowered to direct that the ‘combination’ shall not take effect if it is of the opinion
that the ‘combination’ has, or is likely to have a certain kind of ‘effect’ on the competition. By choosing
the correct option, name that ‘effect’
(b) An appreciable adverse effect on competition
The Competition Commission of India, if on receipt of an information under section 19 from a consumers’
association for alleged contravention of section 3 (1) by the opposite party, is of the opinion that there
exists a prima facie case, it shall direct the to cause an investigation into the matter
(b) Director General appointed under section 16;
The continuing business competition also resulted in the Commission receiving formal information from
one of the Trade Associations in Bihar that there is an abuse of dominance by RBL by contravening various
provisions of the relevant law. The composition of the said Commission (which received the formal
information hereinabove), as per the relevant law shall be:
(b) The Commission shall consist of a Commissioner and not less than two and not
more than six other Members to be appointed by the Central Government.
The decision of Eastern Tea Limited not to sell more than 5 kg of tea per customer purchase can be
categorized as
(D) None of the options
The iPhones sold by XPhone and Sintel came in the compulsorily locked form, thereby meaning, that the
handset purchased from either of them shall work only on their respective networks and none other. This
is in the nature of
(c) Tie in agreement
The oral agreements between Radio Taxi provider C and some customers, falling within Section 2(b) of the
Act .
(a) are not legally enforceable
The parties requesting for confidentiality of information or documents submitted during the investigation
shall have to satisfy the conditions laid down in regulation of the Competition Commission of India
(General) Regulations, 2009.
(c) 35
The plan of SSTPL to consider a higher cost of substitutable goods and services for the dealers is covered
under which of the below factors under the Competition Act, 2002?
(B) Abuse of dominant position.
The prime responsibility of making recovery of the EMI from the borrowers is of: (a) The Lender (JBL Finance Company Ltd.)
The relevant geographic market in this case is _. (a) Gurgaon for sale of services of high rated residential property
The relevant market(s) that the Director-General will identify while making the inquiry is/are
I. Smart Phones in India II. GSM cellular service in India III. Smart Phones in America and India
(b) I and II
The resolution plan as received from AGPL by the insolvency professional contained a provision for
combination, as referred to in section 5 of the Competition Act, 200In such a case, who shall take approval
and approval of which authority is required if the resolution plan is to be considered for approval by COC?
(a) AGPL shall take prior approval of Competition Commission of India
Two Enterprises . (b) cannot be in a dominant position at the same time
Under which of the section of the Competition Act, 2002 Mr. Vikas can approach to Competition
Commission of India against the DRPL?
(d)Under all of the above sections (Under-section 3(4),4,19)
Under which provisions of the Competition Act, 2002, the grievances of Mr. Nazir can be examined? (b) Prohibition of abuse of dominant position under section 4 of the Competition
Act, 2002
What could be the penalty that could be imposed by the Competition Commission of India for the profits
earned by Tri-Bros Private Limited and WFH Limited due to the agreement entered into by them, if the
average turnover during the period of such agreement of Tri-Bros Private Limited was ` 22,00,00,000 and
the profits earned were
` 1,32,00,000?
(a) ` 2,20,00,000
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What did PSPL do to initiate inquiry against DOU as well as VPT for their wrongdoings which resulted in
contravention of the provisions of the Competition Act?
(c) filed information with the Commission;
What is the maximum number of members to be appointed by the Central Government in CCI, as referred
in the case study as per the Competition Act, 2002?
(a) 6
What is the maximum penalty which the Commission could impose on the DOU and its office bearers for
the contravention of the relevant provisions of the Competition Act?
(c) 10% of their average turnover for the last three preceding financial years;
What is the term of the members of the Competition Commission under the Competition Act, 2002 which
is reviewing the agreement / tacit understanding between the real estate companies in the case study?
(B) 5 years, eligible for re-appointment.
What type of anti-competitive agreement has been entered into by AFFL with the network of distributors
and retailers?
(c) Resale price maintenance
What will the maximum penalty that may be levied by the Competition Commission of India, in case of
cartelisation?
(i) Three times of its profit for the last three preceding financial years
(ii) Ten percent of the average of turnover for the last three preceding financial years.
(iii) Three times of its profit for each year of the continuance of such agreement
(iv) Ten percent of its turnover for each year of the continuance of such agreement
(c) Higher of iii or iv
When a notice has been given to the Commission in respect of a ‘combination’ but the Commission has
not passed any order in this respect, such ‘combination’ shall come into effect after the passing of how
many days from the day of giving the notice to the Commission?
(c) 210 days
When evaluating the facts, the Directorate General (DG) of the Competition Commission of India has
sought your views on some of the aspects that he needs to consider for evaluating the relevant
geographic market when determining the position taken by APHA and AMTAA ?
(D) Regulatory trade barriers, local specification requirements, language, consumer
preferences.
When evaluating whether the arrangement between the parties involved shall be presumed to be anti-
competitive and likely to have an appreciable adverse effect on competition, which of the following are
not factors to be considered by the Director General ?
(D) Joint venture between the parties to share distribution channels and logistics
services to reduce cost.
When the merger of Sun Sugar Limited with Northwest Agro Limited, can be considered as a
‘combination’:
(c) When the value of assets of the enterprise created after the merger is more
than` 2000 crores or the turnover after the merger is more than ` 6000 crores.
Where Rohan can file case against the JBL: (c) Competition Commission of India (CCI)
Whether a hostile takeover of ASPL by NEPL, will result in a combination as per the provisions of the
Competition Act, 2002?
(d) For determining combination, the assets should be more than 1000 crores
rupees and turnover should be more than ` 3000 crores
Whether Dumpers Owners’ Union (DOU) can be considered as an enterprise under section 2(h) because it
is a facilitator of the services of dumpers and for that purpose it allocates dumpers of its constituent
(b) No, it cannot be considered an enterprise;
Whether it was mandatory for the CCI to forward the copy of the report of investigation to Nadus (P) Ltd.
and the authority under RERA, respectively?
(b) It was optional for the CCI to forward the copy of the report of investigation to
Nadus (P) Ltd. but it was mandatory to forward the same to the authority under
RERA.
Whether notice for the combination was filed properly by the parties with CCI and till what last date CCI
needs to pass an order for such combination?
(b) Yes, the notice for the combination was filed properly by the parties with the
CCI and the CCI needs to pass an order for such combination by 18th March, 2022.
Whether the acquisition of control in SFL by AFFL can be termed as a “combination” as per the provisions
of the Competition Act, 2002 assuming the acquisition took place on 10.01.2021?
(a) No, as the gross turnover of the company being acquired was below the
threshold.
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Whether the contention of Sintel that CCI does not have jurisdiction on the matters of cellular service
providers in India when TRAI is the regulatory body is correct?
(c) No, both special acts and primacy have to be given to the respective objectives
of both the regulators under their respective statutes.
Whether the Director General was having the authority to exercise such powers as were exercised by him
during the investigation?
(c) He was having the power to receive evidences on affidavit as well as to keep the
books and papers of Nadus (P) Ltd. in his custody, respectively.
Whether the price of ` 500/- and ` 250/- respectively charged by TCL can be considered as a predatory (d) No, because these are more than the costs
Whether the understanding reached among the manufacturers of cement be termed as an agreement (d) Yes
Which of the following are not duties of the Competition Commission of India? (C) To ensure freedom of trade carried on by Indian suppliers in global market.
Which of the following are not factors which need to be considered for determining the relevant product
market under the Competition Act, 2002 ?
(B) Market structure and size of market
Which of the following as per the Competition Act, 2002 refers to any agreement to limit, restrict or
withhold the output or supply of any goods or allocate any area or market for the disposal or sale of goods
as referred in the case study?
(d) exclusive distribution agreement
Which of the following as per the Competition Act, 2002 refers to any agreement to sell goods on
condition that the prices to be charged on the resale by the purchaser shall be the prices stipulated by the
seller unless its clearly stated that the prices lower than those prices may be charged?
(c) resale price maintenance
Which of the following factors are not to be considered when evaluating whether the conditions put forth
by KML on the single screen theatres has appreciable adverse effect on competition?
(A) Directly, or indirectly determines the sale price of the tickets
Which of the following is not one of the advantages of perfect competit ion? Providing greater choice to sellers to decide the buyer
Which of the following is not one of the advantages of perfect competition? (B) Providing greater choice to sellers to decide the buyer
Which of the following is not the objective of the Competition Act, 2002? (A) Promote practices having adverse effect on Competition;
Which of the following persons would be deemed to be guilty of contraventions committed by PPL under
th e provisions of the Competition Act, 2002 2002. PPL, Mr. Biswajit, Mr. Atanu, Mr. Devjyoti and Mrs. Riya respectively.
Which of the following persons would be deemed to be guilty of the contravention committed by Nadus
(P) Ltd. of the provisions of the Competition Act, 2013?
(d) Nadus (P) Ltd., Mr. Mayur, Mr. Neerav, Mr. Urmil and Mrs. Ridhima,
respectively.
Which of the following terms and conditions as per the agreement between LPPL and HLL is not likely to
cause an appreciable adverse effect on competition under the Competition Act, 2002?
(D) A maximum price ceiling on the resale price that may be charged by HLL for
ultimate sale of the goods purchased by it from LPPL.
Which provision of the Competition Act, 2002 shall be applicable in this case: (d) Some parts of Section 3 and 4, both
With respect to the enactment of the legislation, based upon the promulgated ordinances by the
government, what shall be the relevance of commissions’ opinion on the same for the government?
(a) It’s the discretion of the government to make reference to the commission prior
to making any law or policy on competition or any other matter
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RERA CA Final Economic Law MCQ Index (Telegram channel: CA Rohit Chipper)
RERA
RERA
Questions Answer
A certificate certifying that the real estate project has been developed according to the sanctioned plan,
layout plan and specifications as approved by the competent authority under the local laws is called -
(b) Completion Certificate
A promoter shall not accept a sum of more than percentage of the cost of the apartment, plot or building,
as an advance payment or an application fee from a person without first entering a under the provisions of
Real Estate (Regulation and Development) Act, 2016.
(D) 10%, written agreement to sale which is duly registered.
A real estate developer can leave the project mid-way by selling that project to another developer if he has
taken a written approval of of allotteesalong with approval of the Authority.
(a) 2/3rd
A registered real estate agent shall - (d) All of the above.
[(a) Facilitate the sale/purchase of any plot, apartment or building, being sold
by the promoter in any planning area, which is registered with the Authority;
(b) maintain and preserve prescribed books of account, records and documents;
(c) not involve himself in any unfair trade practices]
Aditya Agarwal decided to construct the Nagpur project in two phases due to shortage of funds. What shall
be the impact of the decision on the project under the provisions of the RERA, 2016?
Each phase will be considered as a stand stand-alone project and separate
registration is required for both the phases.
After completion of the real project and handing over the possession to the allotees, who shall form an
association:
(b) The Promoter
After registering the apartments in the name of the allottees, Winner informed the allottees that they need
to pay the water and electricity charges to the concerned departments for their apartments. Evaluate.
(B) The promoter is liable for making payment for the water and electricity
charges until the physical possession is transferred to the allottees.
After the transfer of the new project, the new promoter intend to do some minor changes. Can he do so? (d)The minor changes as per the recommendation of the architect can be done
after proper declaration and intimation to the allottee.
Amount released for the real estate project from allottees in separate account can be withdrawn by
promoter after it is certified by-
d. Engineer, an Architect, and a Chartered Accountant in practice
As per provisions of RERA, collection of cash by Decorit Interiors for interior work, modular kitchen,
supplying fans and lights, etc.:
(C) May be appropriate, since provisions of RERA are not applicable.
As per provisions of RERA, collection of cash by Wonderful Interiors for interior work, modular kitchen,
supplying fans and lights, etc.
(C) May be appropriate, since provisions of RERA are not applicable.
As per RERA 2016, what is the minimum amount that Winner was required to deposit in the escrow
account ?
(B) INR 56 crores
As per RERA, what is the maximum amount of advance or application fee which can be collected by GLHPL
from its customers?
(D) 10% of cost of apartment on entering into a written agreement to sell which
is duly registered.
As per RERA, Winner is required to enable the formation of the association of allottees of Winner Shikaram
within-months.
(A) 3 months of the majority of the allottees having booked their apartment.
As per the provisions of RERA, which of following are treated as part of common area? (D) All of the above
As per the provisions of RERA, which of following is not treated as part of common area? (C) Balcony attached to the living room. and
(D) Area covered by the internal walls.
Before revocation of registration, the RERA authorities are required to give written notice to the promoter
stating the grounds on which it is proposed to revoke the registration. Such notice should be of how many
days within which the promoter needs to reply?
(a) Not less than 30 days
Carpet Area for each apartment offered under project ‘Hamara Ghar’ as per applicable provisions of RERA
is:
(c) 68 Square Meters
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RERA
RERA
Changes proposed by Sweet Homes Private Limited need to be approved through written consent by (c) At least 12 allottees
DBSRD is in contravention of the provisions of the Real Estate (Regulation and Development) Act, 2016,
with respect to:-I. Advance or booking fees collected was more the 10%.II. Advance or booking fees was
collected without entering into a written agreement for sale.III. In the case of some, written agreements
for sale (referred to in point 2 above) were pending for registration.
(d) All the points
Disputes related to real estate projects covered by the vicinity of RERA can be heard in which of the
following hierarchy—
(a) RERA Authority, Appellate Tribunal, High Court
Evaluate the view of the Nambiar Constructions relating to the payment of water and electricity charges by
the allottees.
(B) The promoter is liable for making payment for the water and electricity
charges until the physical possession is transferred to the allottees.
For how many years from the date of handing over the possession of the project ‘NIWAS’ the responsibility
for rectifying any structural defect or any other defect is of the promoter (VCPL) and within how many days
he needs to rectify the same without any further charges?
(c) 5 years and 30 days
GCHPL contends that the apartment leased to Mr. Srinivas is not covered the under Real Estate (Regulation
and Development) Act, 2016 provisions. Advice Mr. Srinivas
(A) RERA is not applicable since it is not a transaction of sale;
(B) RERA is not applicable, since 100% of the sale value is not paid at the time of
transfer of the property and it is a 99 year lease term;
(Both are correct)
How can DBBI Developers Ltd. transfer the real estate project to Vishwas Developers Ltd? DBBI Developers Ltd can transfer the real estate project after obtaining written
consent from 2/3 rd allotees and with the prior written approval of the
Authority.
How many registrations DDRL needs to take under RERA for its projects as aforementioned if any of them
are required to be registered?
(c) Nine
How much further time was available with allottees for filing the rectification application with the
authority under RERA if they could not have filed the same on 12th November, 2021 and whether the
appeal filed by the Malhotra Estate Ltd. can be entertained by the High court of Gujarat?
(d) The said allottees were having further time of 6 months to file the
rectification application with the authority under RERA and the said appeal
cannot be entertained by the High court of Gujarat as it is not having
jurisdiction for the same.
Identify the correct carpet area of the 3 BHK flat purchased by Mr. Vivek out of the option given below; (b) 1428 sq. ft
If the price of each flat is INRs 50 lakhs, then how much will be the maximum amount of advance to book
flat
(b) ` 5,00,000
If the promoter accepted 10% booking fees from the allottees by entering into an agreement for sale but
not getting it registered, then what could be the maximum penalty that could be imposed on the promoter
assuming the estimated cost of the real estate project is ` 150 crores?
(b) ` 7.5 Crores
In case of Royal Golf Burg project, it is seen that it was de-registered by the RERA Authorities due to various
irregularities. Choose from the given options as to who shall have the first right of refusal for carrying out
the remaining development works in case of such revocation of registration.
(a) Home-buyers’ Association of Royal Burg Golf
In case the Real Estate Appellate Tribunal admits the appeal of EEPL against de-registration of the Project,
then maximum within how much time such appeal must be disposed of?
(c) Within 60 days from the receipt of the appeal
In the case of the Royal Golf Burg project, it is seen that it was de-registered by the RERA Authorities due to
various irregularities. Choose from the given options as to who shall have the first right of refusal for
carrying out the remaining development works in case of such revocation of registration.
(a) Home-buyers’ Association of Royal Burg Golf
In the case study, Ketan Builders and Constructions Private Limited had demanded advance payment of
80% of the project cost from the intending home-buyers. After coming into force of Real Estate (Regulation
and Development), Act, 2016 (RERA), maximum how much advance money can be demanded by a builder.
(c) Not more than 10%
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RERA
RERA
In the given case study, Aayush, as a ‘financial creditor’, could also move an application for corporate
insolvency resolution process because non-payment of debt by KBCPL was much more than the minimum
amount stipulated for triggering a default against the company. Indicate that minimum amount by
choosing the correct option (Assuming the current calendar date is 31st July 2021)
(d) ` 1,00,00,000
In the given case, at least how much amount should be transferred to a separate account at the initial stage
if INRs 25,92,00,000 booking amount was collected?
(b) INRs 18,14,40,000
In the given case, RBL obtained the booking amount from the prospective allottees a sum of Rs. 10 lakh. Is
it justified:
(c) RBL cannot accept a sum more than 10% of the cost of the flat. The cost of
flat is Rs 80 lakh, so he cannot accept more that Rs. 8 lakh
In the given case, the promoter transferred his rights and liabilities to a third party. Can he do so: (d) The promoter can transfer his rights and liabilities to a third party after
obtaining prior written consent from two-third allottees and without the prior
written approval of the Authority.
In the given case, the real estate agent, who was not registered with the RERA shall bear the penalty of for
every day during which such default continues, which may extend up to five per cent. of the cost of the
apartment:
(c) Rs 10000/-
In which of the four real estate projects started by Courage Industries Limited, registration of the project is
not mandatory?
(C) Courage Serene
In which of the four real estate projects started by Courage Industries Limited, registration of the project is
not mandatory?
Courage Serene
In which of the four real estate projects started by Premium Company, registration of the project is not
mandatory?
(a) Premium Serene
Is Mr. Amit Jalan required to obtain registration under Real Estate (Regulation and Development) Act, 2016
as real estate agent.
Mr. Amit Jalan is required to obtain s eparate registration as real estate agent
even though project has been registered under Real Estate (Regulation and
Development) Act, 2016.
Is the number of approvals from flat owners received enough for getting the changes in the layout of the
plan?
DBBI Developers Ltd. received approval from 44 flat owners. Thus, it does not
meet the minimum approval criteria required for getting the approval for
changes in the layout of the plan.
JV Realty Ltd. has decided to charge an amount of `5,00,000 on Visio for an open car parking. Ms. Kruthi is
of the view that JV Realty Ltd. cannot charge this amount since this is not mentioned in the original
agreement.
(B) Yes, this cannot be charged since JV Realty Ltd. cannot charge for open car
parking under RERA;
Kindly state which of the following statement is true for undertaking the repair project of 25 year s old
building.
Gregorius LLP is not required to register under the Real Estate (Regulation and
Development) Act, 2016 as repairs to building is not covered under the ambit of
the Real Estate (Regulation and Development) Act, 2016
Mr. Alpha at the time of the booking and issue of allotment letter to the allottees shall be responsible for
making available, which of the following information to them?
(d) All of these.
Mr. Alpha shall be responsible for providing and maintaining the essential services, on reasonable charges,
till the taking over of the maintenance of the project Aashiyana, by____.
(c) The association of the allottees;
Mr. Alpha shall not transfer or assign his majority rights & liabilities in respect of a real estate project to a
third party without obtaining:
(d) Prior written consent from two-thirds of the allottees; except the promoter
and prior written approval of the Authority. However, such transfer or
assignment shall not affect the allotment or sale of the apartments.
Mr. Harshit has announced that any person making bookings via their agency will be given an extra
discount. In the light of the provisions of the RERA, 2016, this announcement can be deemed as:
Misleading the buyers for services that are not intended to be offered.
Mr. Harshit has himself announced that any person making bookings via their agency will be given an extra
discount. In regards to the provisions of RERA, this announcement can be deemed as:-
(b) Misleading the buyers for services that are not intended to be offered.
Mr. Lal did renovation and changes in the existing building and re-sold one-third of the flats in Premium
Heights to some of the previous owners. With respect to the scope of RERA, which of the following is the
correct option?
(d) RERA is applicable as Mr. Lal advertises for selling and flats are resold with
new allotments.
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RERA
RERA
Mr. Manish Mehra had entered into an MoU for the Malshej Premises with TBPL, but on account of lack of
funds and financial difficulties, TBPL could not complete the construction and handover the premises to
TBPL within the time limit specified in the MoU and assuming that there was default on part of TBPL to
return the funds to Mr. Manish on his application for withdrawal from the project, Mr. Manish has
recourse under:
(d) All of the above
Mr. Mehta files an application for initiation of voluntary liquidation proceeding of his Real Estate
construction company. Mr. X, a home buyer of a flat in one of the project of Mr. Mehta claimed for the re-
fund of paid amount or demanded for handover of possession of flat. Which amongst following is not
incorrect statement
c. X’s right & interest is protected after execution of an agreement to sale till
the conveyance of the flat
Mr. Mehta sells a flat of Royal Aashiana to Mr. X for the amount Rs. 75 lakh. Mr. X made the advance
payment. The correct value of the advance payment is
a. Rs. 7.5 Lakhs
Ms. Kruthi seeks your advice on the appropriateness of the calculation of Carpet Area by ARPL under the
Real Estate (Regulation and Development) Act, 2016.
(D) Not appropriate, open terrace to be excluded but internal partition walls to
be included.
NCPL decided to construct the Neelkant Sankalp in two phases due to shortage of funds. What shall be the
impact of the decision on the project?
(C) Yes, each phase will be considered as a standalone project and separate
registration is required;
Neeraj can claim relief for the completion and handover of the possession of the flat purchased in Shubh
Lakshmi Apartment against-
c. Both (a) & (b)
[a. J.K. Builders , b. Himmat Chand]
Offences under the Real Estate (Regulation and Development) Act, 2016 are- (b) Non-cognizable, Bailable, and Compoundable
On completion of the project and after receipt of occupancy certificate, when can an allottee take physical
possession of the
(A) Within two months.
On expiry how many further days from the date of receipt of order of revocation of registration by the
promoter, the decision of the authority under RERA for carrying out of the remaining development works
(a) 15 days
On expiry, how many further days from the date of receipt of order of revocation of registration by the
promoter, the decision of the authority under RERA for carrying out of the remaining development works
should have taken effect?
(a) 15 days
One of the allottees of Decor Dream Home have-reached out to you for your advice on whether the
'collection of the entire consideration by Decor Constructions without regard to the stage of constructions
is appropriate.
(A) Appropriate. The terms/timing of payment are governed by the sale
agreement between the promoter and allottee.
Out of the following acts of Mr. M R Gulati, which can be held as offence under the Real Estate (Regulation
and Development) Act, 2016(i) Not applied for registration of the project at an earlier stage (prior to the
extension of floors)(ii) Receive the advance and installments against an agreement to sell, without/prior
registration of the project.(iii) Use 20% of the fund for completion of another on-going existing project
(a) Both i and ii
Promoter shall handover the necessary documents and plans, including common areas, to the association
of the allottees within;
(b) 30 days after obtaining the completion certificate
Real Estate Regulatory Authority (RERA) must approve or reject the application for registration of Sweet
Homes Private Limited maximum by:
(b) 15th December 2019
Regarding the state of art yoga centre and common area situated in Rishi Enclave, which of the following
statement is correct;
(d) In absence of any local law promoter shall hand over within thirty days after
obtaining the completion certificate.
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RERA
RERA
Registration of a real estate project shall not be required – (a) where the area of land proposed to be developed does not exceed five
hundred square meters or the number of apartments proposed to be developed
does not exceed eight.
Registration of on-going project for which completion certificate is yet to be received is mandatory - (a) Yes, if the area of land (developed or to be developed) exceeds five hundred
square meters or the number of apartments (developed or to be developed)
exceeds eight.
RERA authorities sent a notice to Winner that their advertisement campaign was not in accordance with
the RERA 2016. Evaluate.
(C) Valid, Since Winner launched the project and commenced marketing even
before the project received registration from RERA.
RERA Authority passed the order of de-registration of Royal Golf Burg Project against its promoter EEPL.
Within how many days of receipt of order of de- registration, EEPL, as aggrieved party, can file an appeal
with the concerned Real Estate Appellate Tribunal?
(c) 60 days
RERA Authority passed the order of de-registration of Royal Golf Burg Project against its promoter EEPL.
Within how many days of receipt of the order of de- registration, EEPL, as an aggrieved party, can file an
appeal with the concerned Real Estate Appellate Tribunal?
(c) 60 days
Since the price of the apartment is based upon the carpet area, it becomes important to correctly measure
the same. What shall be the carpet area of the 3 BHK apartment in Nirmal Awas?
(c) 1100 Square feet
STIL is now approaching various real estate brokers to find a suitable space for opening an office in Dubai.
Can STIL buy office premises (immovable property) in Dubai?
(B) STIL can buy office premises in Dubai.
Suppose any project started by Mr. Mehta was not completed within preferred time due to force majeure.
Remedy available to Mr. Mehta in this situation
c. Registration granted may be extended for period not exceeding 1 year on
application
Suppose in the given case if any real estate project was under construction/on going on the date of
commencement of RERA (for which occupancy /completion certificate was not received) by which date
that project should have get its RERA registration?
(a) By 1st August 2016
Suppose the application for Corporate Insolvency Resolution Process against KBCPL filed by National Bank
of India with the National Company Law Tribunal, Delhi is adjudged as incomplete in respect of certain
matters. Within how much time the defects must be rectified from the receipt of notice by the National
Bank of India from the National Company Law Tribunal, Delhi.
(a) 7 days
The allottees wanted a refund of their entire amount from Mr. Singh. Do you think Mr. Lal has a right to
raise objections against the refund?
(d) The allottees have the right to claim a refund whereas Mr. Lal has no right to
raise any objection against the same.
The allottees who obtained the apartments under Lease seek your guidance on whether those apartments
would fall within the purview of RERA ?
(C) No, since the entire sale consideration is not paid upfront and the lease is for
99 years only;
The Alpha Promoter needs to get registration of the new project “AASHIYANA” through the operationalise
web based online system for submitting application for registration of the project within a period of .
(a) One year from the date of its establishment.
The Alpha Promoter shall be responsible for providing and maintaining the essential services, on
reasonable charges, till the taking over of the maintenance of the project “AASHIYANA” by
(c) The association of the allottees;
The Alpha Promoters shall not transfer or assign his majority rights & liabilities in respect of a real estate
project to a third party without obtaining:
(a) Prior written consent from two-third allottees; except the promoters
The application of compensation under section 19 of the Real Estate (Regulation and Development) Act
2016 is
(c) Adjudged by the adjudicating officer appointed by Real Estate Regulatory
Authority at the advice of appropriate government in 60 days from receipt of
application
The association of allottees of Sun Residency brought the construction defects to the notice of Mr. Lal.
After allotting the possession to the allottees and formation of society, is Mr. Lal still liable to the allottees?
Identify the correct statement, regarding the liability of Mr. Lal.
(d) Mr. Lal is liable for the structural defects in the buildings if such defects bring
to his notice within five years from the date of handing over the possession.
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RERA
RERA
The authority under RERA would have operationalised web-based online system for submitting
applications for registration of the project within a period of _.
(a) One year from the date of its establishment.
The bidder Gregorius LLP who decided to venture into development of real estate project is required to
seek which of the required compliance:
R egist ration under the Real Estate (Regulation and Development) Act , 2016 as
the state of Assam has reduced the limit of exemption under the Act to plot size
The company decided to construct the Nagpur project in two different phases due to a shortage of funds.
What shall be the impact of the decision on the project?
(c) Each phase will be considered as a stand-alone project and separate
registration is required for both phases.
The Company decided to construct the Nagpur project in two different phases due to shortage of funds.
What shall be the impact of the decision on the project?
(C) Each phase will be considered as a stand-alone project and separate
registration is required for both the phases.
The cost of the flats offered for sale by the UBDL was Rs. 50 lakh. How much advance UBDL can take from
the customers without entering into a written agreement:
(b) Rs. 5,00,000
the given case, the promoter has booked some of the flats prior to registration of real estate project with
the Real Estate Regulatory Authority (RERA). What penalty can be imposed on the promoter by the RERA:
(b) The penalty may extend up to 10% of the estimated cost of the real estate
project as determined by the Authority
The penalty paid to ZRL under the Real Estate (Regulation and Development) Act, 2016 shall be credited to; (b) Account specified by the State Government
The promoter Alpha at the time of the booking and issue of allotment letter to the allottee shall be
responsible to make available to the allottee the .
(d) All of the above. [(a) Sanctioned Plans (b) Layout Plans (c) the stage-wise
time schedule of completion of the project.]
The promoter at the time of booking and issue of allotment letter is NOT responsible to make available to
the allottee:
(d) List of allottees who have booked the flats showing their names, addresses,
cast/ religion
The promoter EEPL did not complete the Royal Golf Burg Project within the projected time-frame as shared
through declaration with RERA Authorities while seeking registration under Section 4. For such
contravention, how much penalty the EEPL is liable to pay?
(b) Penalty may extend up to 5% of the estimated project cost
The promoter is required to rectify any structural defect if it occurs within a period of ----- years from the
date of handing over the possession of the apartments to allottees –
(d) Five years
The Promoter of the RMB Estate did not get the project registered with the RERA Authority. For this non-
compliance, the Promoter shall be
The Promoter is not liable for any penalty.
The Promoter shall not accept more than------------- towards the booking amount of the flats in RMB
Heights, from the employees of URF, without first entering into a written agreement for sale:
` 6,65,000
The promoter while submitting the application for registration of real estate project under section 4 of the
RERD submitted false information that he have the legal title to the land, but in fact at the time of
application for registration, he was not having such clear title. What penalty can be imposed on the
promoter:
(c) The promoter shall be liable to a penalty which may extend up to 5% of the
estimated cost of the real estate project, as determined by the Authority
The promoters of Lotus Square didn't register the project with RERA authority as required under RERA,
2016. What will be the consequences they have to bear for it?
(a) Penalty up to ten percent of the estimated cost of the project.
The promoters of Riveria Condename transferred their majority rights to Z-one Construction Company. Has
the company complied with the provisions of the relevant Act, before transferring its rights to another
company? Choose the correct statement.
(b) The company is required to take prior written consent of two-third of
allottees and approval from the authority also.
The real estate agent, Mr. Miraj, is - (a) Guilty, because he facilitated the sale of an apartment in a non-registered
project
The remedy available to the allottees by filing a complaint before:-i. Insolvency and Bankruptcy Code ii.
Consumer Forum iii. RERA (Assume that the scheme of BLF Ltd., ‘The Jannat’ got commenced after the
enactment of relevant provisions of the IBC, 2016 and RERA, 2016 for this particular question.)
(c) i, ii, and iii
The time limit within which an allottee is required to take physical possession of the apartment after issue
of occupancy certificate is -
(b) two months
Under RERA, 20% of the flat cost cannot be accepted unless: (A) Property is registered.
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RERA
Under RERA, provision related to 5 years warranty is applicable to following: (D) All of the above
Under RERA, the price of the apartment is based upon the carpet area and therefore it becomes important
to correctly measure the same. What shall be carpet area of the 3 BHK in Nirmal Awas?
(B) 1100 square feet
Under RERA, when all documents in connection with insurance shall be handed over by the promoter to
the allotees?
(D) On formation of society.
Under the provisions of RERA, how much amount can be taken as advance at the time of booking of fl (b) Not more than 10%
Under the Real Estate (Regulation and Development) Act 2016, in absence of local law the association of
allottees shall be formed within a period of three months from the-
(c) Majority of allottees having booked their plot or apartment or building, as
the case may be.
Under the Real Estate (Regulation and Development) Act 2016, while making an application for registration
of the project, the Aero Developers and Realtor Private Limited (ADRPL) shall state__________of
apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the
exclusive open terrace areas appurtenant with the apartment, if any;
(b) the number, type, and the carpet area
Were the 215 allottees correct in demanding from the promoter to compensate them to pay interest since
they are suffering for not providing the flat and had to pay the rent to their present landlord inwhich they
are residing. Choose the correct option as per the provisions of the Real Estate (Regulation and
Development) Act, 2016:
(a) Yes, these allottees shall be given interest for every month of delay, till the
handing over of the possession
What is the maximum amount of booking advance that ARPL can collect fromMr. Srinivas under the Real
Estate (Regulation and Development) Act 2016?
(A) ` 11 lakhs;
What is the time limit within which the allottee shall take physical possession of the apartment: (b) Within a period of two months of the occupancy certificate
What is the time limit within which the promoter shall execute a registered conveyance deed in favour of
the allottee, in the absence of any local law:
(c) Within three months form the date of issue of occupancy certificate
What is your view regarding the position taken by NCPL on the exclusion of 2 apartment owners for the
purpose of considering their need for approval of transfer of infrastructure project to SIPL?
(B) No, the position is incorrect, the subsequent owners of the apartment are
also to be considered as allottees under RERA
What is your view regarding the terms of the agreement relating to the open car parking arrangement with
the allottees ?
(C) Open parking areas cannot be sold for consideration since they are to be
considered as common area of the Project.
What shall be the maximum amount of advance as per provision of applicable laws that can be
charged/paid in case of 3BHK flat booked Mr. Dhruv?
(b) Thirty lakhs rupees
What shall be the maximum penalty that could be levied upon NEPL, for furnishing false information in an
application to Real Estate Regulatory Authority?
(b) ` 64 Lakhs
What should ARPL do to ensure they are able to collect amounts from allottees for open car parking
facilitates under the Real Estate (Regulation and Development) Act, 2016?
(D) No amounts can be charged for open car parking slots.
Where a builder is planning to develop a particular project in different phases spread over couple of years,
then he is required to obtain registration under Real Estate (Regulation and Development) Act
(B) For each phase separately.
Where a Real Estate Agent contravenes the provisions of section 9 or section 10 of the Real Estate
(Regulation and Development) Act, 2016 he shall be liable to penalty as determined by the Authority of
(C)10,000 for every day during which the default continues upto 5% of the cost
of the plot, apartment or building of the project for which sale has been
facilitated
Whether DDRL is required to register the real estate project ‘LIGHT’ under RERA? (c) Yes, because in aggregate 48 units to be constructed considering all phases
Whether FDDR is legally authorised to make changes in building layout and specification? (d) No, FDDR is not legally authorised to make any sort of changes, because it
has obtained written consent from less than 2/3rd of the allottees in advance.
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RERA
Whether Sujata Builders and Developers (P) Ltd. has validly handed over the relevant documents and the
possession of the common area to the resident society of Silver Oak Residency within the required time
frame?
(d) No, because in the absence of any local law, the promoter shall handover
the necessary documents and plans, including common areas, to the association
of the allottees within 30 days from the date of completion certificate i.e. 15th
December 2020, while the builder handed over on 28.12.2020.
Whether the application filed by the 30 allottees of Trees Estate Ltd. can be considered to be admissible by
the Adjudicating authority?
(c) No, as the application is filed jointly by lesser number of
allottees than prescribed.
Whether the authority under RERA can be rightly said to have granted extension of time in completion of
‘Nivas’ and in case if PPL (P) Ltd. again makes an application for extension of time, then how much
Yes, as it appears that there is no default on the part of PPL (P) Ltd. and the
authority under RERA can again grant an extension of time to PPL (P) Ltd. for
Whether the Authority under RERA can be rightly said to have granted extension of time in completion of
‘Nivas’ and in case if SPL (P) Ltd. again makes an application for extension of time, then how much
maximum time can be granted by Authority under RERA, once again?
(c) Yes, as it appears that there is no default on the part of SPL (P) Ltd. and the
Authority under RERA can again grant extension of time to SPL (P) Ltd. for
maximum 7 months.
Whether the collection of 95% of consideration by BLF Ltd. without regards to the stage of construction is
appropriate as per RERA assuming that the scheme of BLF Ltd., ‘The Jannat’ got commenced after the
enactment of relevant provisions of the RERA, 2016 for this particular question and ‘The Jannat’ is
registered as per the relevant provisions of the said act.
(a) Appropriate as the terms/ timing of payment is governed by the sale
agreement between the promoter and the allottee.
Whether the receipt of application cum advance money by Imperial Residency Ltd. is valid in reference to
the relevant provisions of RERA?
(d) Legally invalid, because the written agreement to sell is entered and
registered after the date of receipt of advance money and also such amount is
more than ten percent of the cost of the apartment
Which of the following statement is correct regarding the deposit of advance for 4BHK under the RERA
2016:
(c) Promoter shall not accept any deposit unless entered into a written
agreement for sale
Which of the following statements are correct requirements regarding the transfer of project ‘Surya
Enclave’ in the case of NDI?
ii. Project can be transferred, after obtaining the written approval from the
authority
Which of the projects of NCPL do not require registration with RERA? (A) Neelkant Nandanam;
Which sentence is true about Mr. Bhatia being an allottee- (d) All of above
Who is required to submit a copy of duly obtained approvals and commencement certificate for getting the
project registered with RERA:
(b) Promoter
Who shall be responsible to obtain the completion certificate: (c) The promoter
With reference to the RERA ; which of the following sentence/s are correct? (a) The appropriate Government shall, within a period of one year from the
date of coming into force of this Act, establish an Authority
With respect to the payments received from allottees against flats and apartments at Deccan Residency
Towers - I, DREIL is –
(d) Not guilty
With respect to the project GVR, GKPL is considered to be – (a) Guilty, liable for a penalty equal to ₹1,30,000
Within how much time period, KGB shall take physical possession of the apartment at Silver Oak
Residency?
(c) Within two months from the date of issue of occupancy certificate i.e. by
31st October 2020.
XYZ Infrastructure Company after takeover of the project, did changes in the layouts of the project. Is it
authorised to do the changes to the layouts of the ongoing project? Which of the following statements is
(B) As a new promoter of the project, it is authorised to make necessary
changes.
XYZ Infrastructure Company after takeover of the project, did changes in the layouts of the project. Is it
authorized to do the changes to the layouts of the ongoing project under the provisions of the RERA, 2016?
(D) The new promoter is required to carry forward the project by complying
with all the pending obligations of the erstw hile promoter, before making any
changes.
XYZ Infrastructure Company after the takeover of the project, did changes in the layouts of the project. Is it
authorised to do the changes to the layouts of the ongoing project?
(d) The new promoter is required to carry forward the project by complying
with all the pending obligations of the erstwhile promoter.
Page 17

IBC CA Final Economic Law MCQ Index (Telegram channel: CA Rohit Chipper)
IBC
IBC
Questions Answer
Addis Bank wants your advice with regard to its rights for selecting the interim resolution
professional under the Insolvency and Bankruptcy Code, 2016
(B) Addis Bank has the right to propose the name of the IRP in its application for
corporate insolvency resolution process and the same person is appointed by the
adjudicating authority if there are no disciplinary proceedings;
APPL filed an application for initiation of CIRP und er the Code. Specify which of the following
requirement is not binding while filing of an application before NCLT: (d) Proposing the name of an Interim Resolution Professional
As a financial creditor, whether Ms. Jaya can be a part of the Committee of Creditors (CoC) after she
submitted her claim in ‘Form C’.
(d) No, she is a director of KWEL, hence can’t be a part of the CoC.
As per the given case study, how much amount shall be distributed to government dues,to secured
creditors whose debts remain unpaid following the enforcement of security interest and for the
court case-penalty amount, if the funds available with the liquidator after distribution to unsecured
financial creditors is `64 lakhs under the Insolvency and Bankruptcy Code, 2016?
(A) `40 lakhs to government dues, `4 lakhs to secured creditors with unpaid debt
and`20 lakhs for the court case-penalty amount;
As per the given case study, how much amount shall be the distributed to government dues, to
secured creditors whose debts remain unpaid following the enforcement ofsecurity interest and for
the court case-penalty amount, if the funds available with the liquidator after distribution to
unsecured financial creditors is ` 64 lakhs?
(a) ` 40 lakhs to government dues, ` 4 lakhs to secured creditors with unpaid debt and `
20 lakhs for the court case-penalty amount
As per the Insolvency & Bankruptcy Code, 2016, resolution plan is prepared by ----------- is submitted
to ----------------- for examination and submission to for approval.
(c) Resolution applicant, Resolution Professional, Committee of Creditors
As per the Insolvency and Bankruptcy Code, 2013, in the given case scenario, the amount that was
raised by the promoter from the allottees for Ronak Heights, shall be deemed to be an amount of
the nature:
(b) Commercial effect of borrowing
As per the Insolvency and Bankruptcy Code, 2016, an Interim Resolution professional approved by
the committee of Creditors:
(c) Can be replaced with 75% voting in favour of the decision and approval of the Board
Assume that there are no legal proceedings going on between allottees and KKIPL and NCLT
admitted the application filed by the allott ees for initiation of the Corporate Insolvency Resolution
Process against KKIPL but immediately thereafter KKIPL and the Allottees came to a satisfactory
settlement. In such a case, the application for CIRP:
( May be allowed to be withdrawn by the NCLT o n an application by the Allottees
subject to the approval of the Committee of Creditors with a 90% voting share. (B) May
be allowed to be withdrawn by the NCLT on an application by the Allottees.
Assume that there are no legal proceedings going on between IPPL and BSPL and NCLT admitted the
application filed by IPPL for initiation of the corporate insolvency resolution process against BSPL but
immediately thereafter IPPL and BSPL came to a satisfactory settlement. In such a case, the
application for CIRP:
(b) May be allowed to withdraw by NCLT on an application by IPPL subject to the
approval of the Committee of Creditors with a 90% voting share
Assuming Mr. Varadraj accepts a short-term loan of ?20 Lakh (which is twice the limit fixed for such
loan) as interim finance to meet the requirement and keep MEPL running as a going concern during
CIRP. Choose the correct option out of the following:
(b) Mr. Varadraj needs prior approval from the Committee of Creditors.
Assuming that instead of Mr. Varadraj, Mr. Ranjit is appointed as Resolution Professional, then till
what period Mr. Varadraj can continue as Interim Resolution Professional?
(d) Shall continue till the date of appointment of the resolution professional
Assuming that Mr. Varadraj suggested the merger of MEPL with some XZY Company under the
Resolution Plan. What will be your advice to Mr. Varadraj according to the provisions of this Code?
(c) Resolution plan may include restructuring of the corporate debtor, including by way
of merger, amalgamation, and demerger.
Assuming that the allegations of S&N against Pandu are upheld, what is the potential penalty I
punishment applicable for Pandu under IBC 2016?
(A) Imprisonment for a term of 3 to 5 years, fine ranging from one lakh to one crore or
both
Assuming that the allegations of S&N against Pandu are upheld, what is the potential penalty
punishment applicable for Pandu under IBC 2016?
Imprisonment for a term of 3 to 5 years, fine ranging from one lakh to one crore or
both
Page 18

IBC
IBC
By what voting share the resolution plan would have considered being passed if the financial
creditors voted as follows;Name of financial creditor - Type of vote given
TDF Bank - In favour ALC Bank -
Not in favour Finco Private Limited - In favour TSB Bank
- In favour Mr. G (related party) - - KM LLP
- Not in favour Ti-Fin Corp. - In favour
Debts owed in aggregate to 20 parties - The Authorised representative voted accordingly
(11 parties were in favour and 9 voted against the plan)
(c) 77.14%
By which date does ‘Power Sun Private Limited’ need to respond to demand notice of operational
creditor served on 15th November 2019
(b) Latest by 25th November 2019
Can ACL file Corporate Insolvency Resolution Process against DMPL under IBC, 2016? (C) No, since the amount of default is less than the minimum amount of default ( `100
lakh) for being covered under Section 4 of IBC, 2016;
Can KKDPL apply for Corporate Insolvency Resolution Plan (CIRP) against the customers who have
overdue amounts?
No, the Corpor ate Debtor who underwent CIRP itself, cannot apply for initiation of
CIRP against other Corporate Debtors.
Can the adjudicating authority grant extension to the resolution professional in the present case for
the purpose of completion of fast track CIRP?
(d) No, the extension cannot be granted.
Can the allottees of the flat, file an application for initiation of Corporate Insolvency Resolution
Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC):
(c) The allottees can file CIRP under IBC provided the number of allottees are not less
than 100 under the same real estate or 10% of the total number of allottees,
whichever is less
Can the bank file the insolvency proceedings against RIL (a) No, the bank can’t take the RIL to insolvency proceedings.
Default” under the IBC is said to be occurred on the fulfillment of condition/s- (d) Both (a) & (b)
[(a) Debts becoming due and payable (b) Non- payment of the debt]
Due to the downturn in the finance industry, Sure Returns Private Limited suffered heavy losses and
couldn’t repay the dues to its creditors and investors. Who can initiate proceedings against Sure
Returns Private Limited under the IBC, 2016?
(D) None, IBC 2016 does not apply
Few among allottees take RCL to NCLT for initiation of Corporate Insolvency Resolution Process
(CIRP) against it. Advance payment against allotment by allottees to RCL shall be considered as
(b) Financial debt
Following are the liabilities of M/s A Limited, which is under insolvency process under IBC 2016.(i)
Loan from Bank - INR 100 crores.(ii) Secured Debentures issued to M/s B Limited - INR 20 crores.(iii)
Trade Payable (10 creditors, including B Ltd., whose outstanding is `2 crores) - INR 14 crores.(iv)
Amounts payable to workmen - INR 4 crores.
(B) 16.6667%
For filling of an application for initiating the Pre-packaged Insolvency Resolution Process, approval (b) corporate debtor shall obtain approval from its financial creditors, not being its
For initiation of the corporate insolvency resolution process against BSPL, IPPL can file an application
to NCLT jointly with:
(d) IPPL can file application solely only and not jointly
For the purpose of IBC 2016, what would be the status of NOCL? Partly an Operational and partly a Financial Creditor.
How should the voting share of each of the Banks who have lent to Seaview Constructions be
determined under IBC, 2016 ?
(B) Based on the financial debt owed by Seaview Constructions to each bank as a
proportion to the total financial debt owed by Seaview Constructions to third parties
(i.e. other than related parties).
If DBSCS furnish an application for the initiation of insolvency resolution process, then adjudicating
authority shall within a period of ___________ days from the date of receipt of application; either
accept the application or reject the same; but in case of rejection, a notice to rectify the defects in
his application, within a period of____________days from receipt of such notice shall be given.
(b) 14, 7
Page 19

IBC
IBC
If in any case the resolution plan is approved by the Adjudicating Authority, but is breached by MEPL,
then what remedy can be availed by the person whose interests are prejudicially affected?
(b) May make an application to the Adjudicating Authority for a liquidation order
If Mr. Prem had created a security interest in favour of one of the operational creditors to substitute
its existing operational debt with financial debt then whether it can be considered as a preferential
transaction and within what time Mr. Prem should have entered into such transaction?
(c) Yes, during the period of one year preceding the insolvency commencement date
If the CoC, in their first meeting, decided to appoint another insolvency professional as Resolution
Professional, which among the following describe the correct procedure?
(c) The CoC to file an application before the Adjudicating Authority for the appointment
of the proposed RP whose name shall be forwarded to the IBBI for its confirmation
In case, if Mr. G was not a related party and had abstained from voting, and out of the 20 unrelated
parties, 10 voted in favour, 3 voted against the plan and the remaining didn’t vote, then by what
voting share the resolution plan would have considered being passed if other details remain same as
per question no. 2 above?
(c) 81.63%
In context to the allegations made by Mr. Satbir against officers of the corporate debtor, which of
the following grounds are not valid grounds of misconduct in course of CIRP?I. Officer of the
corporate debtor failed to deliver to the resolution professional all books and papers in their control
or custody belonging to the corporate debtor.II. Officer of the corporate debtor does not disclose to
the resolution professional all the details of the property of the corporate debtor.III. Officer of the
(b) III only
In the appeal filed by Mr. DEF before the NCLAT against the admission order passed by the
Adjudicating Authority, which among the following is the correct statement?
(b) The limitation for filing an appeal before the NCLAT is 30 days and any delay up to
15 days may be condoned by the NCLAT on a case-to-case basis
In the case of PNR Bank and Ka rna Bank acting as secured creditors, what percentage of amount
outstanding on a record date, is required to either of them for exercising all the rights conferred on None of the above
In the case study PNB initiated Corporate Insolvency Resolution Process against MMPL for the
default in the capacity of-
(c) Financial creditor
In the case study, after the admission of the application for initiation of CIRP, what is the legal
position of the Directors of the Corporate Debtor?
(c) The powers of the Board of Directors are suspended
In the case study, committee of creditors of MMPL was constituted on 17.3.2018. Time limit, within
which the first meeting of committee of creditors should be held, is --.
(c) 24.3.2018
In the case study, has the operational creditor moved its application under the Code on behalf of (d) No, because APPL is a del del-credere agent and hence liable for payment by
In the case study, the expenses of public announcement shall be borne by the- (d) PNB
In the given case study National Bank of India filed an application for corporate insolvency resolution
process (CIRP) with the National Company Law Tribunal, Delhi against KBCPL for default in
repayment of term loan. If everything was in perfect order, from which date the corporate
insolvency resolution process would have commenced?
(a) From the date of admission of the application.
In the given case, who shall be the member of the Committee of Creditors: (a) The Bankers (being the financial creditors) only
Is Wonder Bearings Ltd. eligible to initiate insolvency resolution process against Unimetal Castings
Ltd.?
(C) Eligible, since requirement is to have completed the resolution process 12 months
preceding the date of making of the application
MMPL finds material irregularity in exercise of the powers of the Ronit during the corporate
insolvency resolution period. Remedy available to MMPL-
(d) File an appeal against the order of adjudicating authority against the approval of
resolution plan.
Mr. Dev Sharma would have been ineligible to be appointed as the Interim Resolution Professional
of Roshni Ltd. if: if:-
(a) Sharma & Co. would have entered into transaction(s) of further amount of ` 1 lakh
or more with Roshni Ltd. during any of the last 3 financial years
Mr. Dev Sharma would have been ineligible to be appointed as the Interim Resolution Professional (a) Sharma & Co. would have entered into transaction(s) of further amount of R1 lakh
Mr. Kamran (Interim Resolution Profess ional) shall hold the office till; (a) Till the date of appointment of the resolution professional under section 22.
Mr. Kamran (Interim Resolution Professional) shall hold the office till; (c) Till the date of appointment of the resolution professional under section 22.
Page 20

IBC
IBC
Mr. Rajesh Panchal, keeping the facts and circumstances in mind, formed the committee of creditors
(“COC”). The COC would consist of:
(c) Bank and ORL
Mr. Ram who has been appointed as the resolution professional can take the following actions
without the approval of the Committee of Creditors:
(C) File applications for avoidance of preferential or undervalued transactions.
Mr. X is duty-bound to which of the following statements?i. Collect all information relating to the
assets, finances, and operations of the corporate debtor for determining the financial position of the
corporate debtor, including information relating to business operations in addition to financial and
operational payments for the previous three years;ii. Receive and collate all the claims submitted by
creditors to him, pursuant to the public announcementiii. Monitor the assets of the corporate
debtor and manage
(d) ii and iii only
NCLT by an order issued a moratorium in the case of MEPL. Which of the following statements is
true regarding the length of the moratorium under IBC?
(d)In case the Adjudicating Authority approves the resolution plan, the moratorium
shall cease to have effect from the date of such approval order.
On 25 th February 2023, the Adjudicating Authority admit the application for initiation of CIRP.
Which of the following statements hold truth? (b) iii only
On 25th February 2019, the adjudicating authority admit the application for initiation of CIRP. Which
of the following statements hold truth?i. Adjudicating authority shall listen to both the parties only
then admit the applicationii. Adjudicating authority may give notice to the applicant before rejecting
the applicationiii. Adjudicating authority shall within 14 days of receipt of the application, by order
either accept or reject the application
(b) iii only
ORL had given loans to MEL as well as to WTL respectively for the purpose of their ventures and had
also given some raw materials to both the companies on credit, which remained unpaid. Hence for
the purpose of the Insolvency and Bankruptcy Code, 2016, it can be said that ORL:
(c) is partly an operational creditor and partly a financial creditor
Out of the below, identify who is a related party of DMPL under the IBC, 2016? (C) Mr. X, who although not an employee or director of DMPL, is close to the promoter
and attends Board Meetings to provide guidance/directions on policy making process
PNB through an assignment agreement, assigned here the debt to the X trust. X trust filed the
petition for initiation of corporate Insolvency resolution process (CIRP) against MMPL. State the
correct statement with respect to the competency of the X trust in the filing of the petition in the
above situation-
(c) X Trust in the capacity of financial creditor can file a valid petition.
Pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016, what shall be time to
obtain the approval of the Competition Commission of India?
(a) After submission of resolution plan but before the approval of the same by
Committee of Creditors
Regarding admissibility of application furnished by financial creditor to initiate the Corporate
Insolvency Resolution Process in case of SEPL, which of the following statements is correct?
(d) None of these.
[(a) Since the default is caused by a bad financial position that arises due to COVID -19,
hence suspension provision applies here. (b) Amount of default is less than the
threshold limit for filing an application. (c) Default took place after the suspension
clause expired, this is sufficient cause to admit the application]
Regarding the appointment of Mr. Syal as the resolution profession, choose the correct statement/s
out of the following:i. Appointment of Mr. Syal is legally invalid because his appointment is approved
by a voting share of not more than 66%.ii. Appointment of Mr. Syal is legally valid because his
appointment is approved by voting share which is not less than 66%.iii. Written consent of Mr. Syal
is required.
(d) ii and iii only
Page 21

IBC
IBC
Regarding the committee of creditors and its meeting, which of the following statements is/are
incorrect;i. The committee of creditors shall conduct its first meeting by 2nd September 2019.ii. The
committee of creditors shall comprise both operational and financial creditorsiii. In the case of
consortium all the participant banks shall be part of the committee of creditors that too with equal
voting share.
(d) i, ii, and iii
Regarding the duration of moratorium identify incorrect statement/s out of the following:i. The
order of moratorium shall have effect from the date of admission from application filled under
sections 7, 9, and 10 of the IBC.ii. The order of moratorium shall have effect till the completion of
the corporate insolvency resolution process.iii. If Adjudicating Authority approves the resolution
plan
(a) i only
Regarding the pre-packaged insolvency resolution process of TBL. Pick the option that contains
correct inclusions into the pre-packaged insolvency resolution process cost;i. Any costs incurred by
the resolution professional in running the business of the corporate debtor as a going concern
pursuant to an order under section 54J(2);ii. The amount of any interim finance and the costs
incurred in raising such financeiii. Any costs incurred at the expense of the Government to facilitate
the pre- packaged insolvency resolution process.
(d) All of i, ii, and iii
Ronit, being an Insolvency Professional can be appointed as Resolution Professional, if: (d) Both (a) and (b)
[(a) he is eligible to be appointed as an independent director under section 149 of the
Companies Act, 2013 (b) he is not a related party of the corporate debtor]
Sanjay claims that the provisions of the Insolvency and Bankruptcy Code (IBC), 2016 are not
applicable in his case. Which of the following statement is correct
The claim of Sanjay is incorrect as the as the provisions of the IBC, 2016 is applicable to
any company, limited liability partnership and personal guarantor to Corporate Debtor.
Suppose Radhika had given a loan of ` 15 lakh to KBCPL which remained outstanding when
Corporate Insolvency Resolution Process was ordered. As a financial creditor whether she could be a
part of the Committee of Creditors (CoC) after she submitted her claim in ‘Form C’.
(b) No, she is a director of KBCC, could not be a part of the Committee of Creditors
(CoC).
SVL has a net claim of rupees against PVL. (b) 3.00 crore
SVL is a/an for its claims against PVL. (b) An operational creditor
The Adjudicating Authority has by an order declared moratorium period for "SOL". Vide the
moratorium order, which of the following shall not be prohibited?
(D) The supply of raw wheat and pulses from its suppliers for processing and packing.
The Adjudicating Authority has by an order declared moratorium period on the 'Poor' Ltd.Vide the
moratorium order, the following shall not be prohibited:
(D) The supply of raw material essential for construction of commercial real estate
from its suppliers.
The adjudicating authority under the Insolvency and Bankruptcy Code, 2016 on the admission of
application for corporate insolvency resolution process does not make an order for –
(d) Formation of the Committee of Creditors
The Committee of Creditors (CoC) of BSPL would comprise of: (d) UCL
The committee of creditors will constitute of: (a) Banks X and Y
The final meeting of Committee of Creditors was to be held on 25 25th March, 2020. Under the
Insolvency and Bankruptcy Code, 2016, is it necessary to hold the meeting in person or can it be Meeting in person is not necessary and it can be held via video conferencing.
The final meeting of the committee of creditors was to be held on 25th March 2020. Is it necessary
to hold the meeting in person or can it be arranged otherwise?
(b) Meeting in person is not necessary and it can be held via video conferencing.
The IRP appointed for Multicrop is seeking your views on the constitution of the Committee of
Creditors of Multicrop. Multicrop does not have any financial debt other than a loan obtained from
Mr. Ajay Jhawar, son of the Mr. Vijay Jhawar, the Managing Director of Multicrop. Considering the
above, identify the appropriate constitution of the Committee of Creditors out of the following :
(B) 18 largest operational creditors, 1 representative of workmen and 1 representative
of employees.
Page 22

IBC
IBC
The liquidation process relating to corporate debtors under IBC 2016 will not be initiated under
which of the following circumstances ?
(C) The Committee of Creditors resolve to liquidate the debtor with a majority (> 50%).
The liquidator of M/s Wrongway has sought your help in prioritizing the claims against M/s
Wrongway, as per IBC 2016:(1) Costs payable to liquidator and resolution professional.(2) Property
tax payable to Government of Goa.(3) Salary payable to the Finance team for past 6 months.(4)
Amounts payable to M/s Dhara Bank towards secured loans, where security was relinquished.(5)
Amounts payable to Holding company of M/s Wrong way for Royalty fees.
(D) None of the above
The management of the affairs of 'Poor' Ltd., the corporate debtor undergoing corporate insolvency
resolution process vests in the .
(A) Mr. Ram, Interim Resolution Professional
The maximum duration during which the appointment of Interim Resolution Professional (IRP) is
valid shall not exceed days.
(c) 30
The NCLT rejected the resolution plan for want of compliance with the IBC, accordingly, the
proceeds from the sale of liquidation shall be distributed in the following order of priority
None of the options are correct
The NCLT rejected the resolution plan for want of compliance with the Insolvency and Bankruptcy
Code and proceeded to initiate liquidation proceedings. During the course of liquidation, it was
found that 'Poor' Ltd. had gifted some valuable assets of the Company to another friendly company
Soft Ltd. on 20th April, 2016 and D1 (unsecured financial creditors) reported the transaction to the
National Company Law Tribunal by way of an application. The National Company Law Tribunal may
pass an order:
(A) Rejecting the application of D1.
The NCLT rejected the resolution plan for want of compliance with the Insolvency and Bankruptcy
Code, accordingly the proceeds from the sale of liquidation shall be distributed in the following
order of priority :
(D) D3 & D2 (ranked equally)-D1-D5 & D4 (ranked equally).
The provisions of the IBC are not applicable on: (d) None of the above
The Resolution Professional constitute a Committee of Creditors. Who shall be entitled to become a
member of the COC:
(d) Only ICICI Bank and Home Allottees
The term 'Moratorium' in the Insolvency and Bankruptcy Code, means- (b) A period declared by the NCLT, during which no action can be taken against the
Company or the assets of the Company.
Till what date the Committee of Creditors should have considered the withdrawal application
submitted by Ukrin Ltd. and till what date, such application should have been submitted with the
Adjudicating authority for approval by Mr. Tanmay?
(d) 2nd June and 4th June, respectively.
Till which date the meeting of the committee of creditors of KOCL shall be conducted? (b) 17th March 2020
TJSB Sahakari Bank would like your views on, which of the following will not be considered as
insolvency resolution costs under the Code:
(C) Any payment of fees for the services of an insolvency professional to any person
other than the insolvency professional;
What is quorum in case of meeting of committee of creditors (CoC)? (A) Members of the Committee representing at least 33% of the voting rights present
either in person or video conference or other audio visual means.
What is the percentage share of Bank A in the Committee of Creditors of DMPL under IBC, 2016
proceedings?
(C) 41.27%.
What is the status of ACS regarding the invocation of IBC, 2016 by ABC Bank for the housing loan
obtained by Arvind?
(A) ACS is considered as a corporate debtor
What is the status of ACS regarding the invocation of IBC, 2016 by ABC Bank for the housing loan
obtained by Arvind? ACS is considered as a corporate debtor.
What minimum fine amount should have been imposed on Turf Enterprise by the Adjudicating
authority and what amount of maximum fine it could have imposed on Turf Enterprise?
(d) Adjudicating authority should have imposed minimum fine of R1 lakh on Turf
Enterprise and maximum fine of R1 crore could have been imposed by it.
What shall be the legal validity of the appointment of CA Naveen Sood as the resolution professional
of ASL at the first meeting of the committee of creditors?
(b) Invalid, because resolution confirming such appointment requires a special
majority; of not less than 66% of voting share of financial creditors
Page 23

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