Insolvency and Crypto

Question 1

the Ministry of Corporate Affairs (MCA) has published a draft framework for cross border insolvency proceedings based on the _____________ model under the Insolvency and Bankruptcy Code (IBC).

Answer 1

UNCITRAL (United Nations Commission on International Trade Law)

Question 2

Broadly, the cross-border insolvency process pertains to those debtors having ______________– overseas.

Answer 2

assets and creditors

Question 3

Bankruptcy:

Answer 3

It is a situation whereby a court of competent jurisdiction has declared a person or other entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors. It is a legal declaration of one’s inability to pay off debts.

Question 4

what is the primary legislation governig insolvency in india

Answer 4

IBC, 2016 - insolvency anf bankruptcy code

Question 5

While foreign creditors can make claims against a domestic company, the IBC currently does not allow for ____ recognition of any insolvency proceedings in other countries.

Answer 5

automatic

current provisions under the IBC do not allow Indian courts to address the issue of foreign assets of a company being subjected to parallel insolvency proceedings in other jurisdictions. (this given unequal importance to other countries and the dues liable to them)

Question 6

The IBC is implemented in the ___ courts

Answer 6

NCLT and NCLAT - Natl. Company Law Appellate Tribunal

Question 7

In the case of __________, when one of the company’s aircraft was grounded in Amsterdam over non-payment of dues to a European cargo firm, the National Company Law Tribunal had declined to “take on record” any orders of a foreign court regarding domestic insolvency proceedings in the absence of enabling provision in the IBC.

The National Company Law Appellate Tribunal, however, permitted the recognition of Dutch proceedings as “non-main insolvency proceedings” recognising India as the Centre Of Main Interests (COMI) for the company.

Answer 7

Jet Airways

Question 8

what are the two sectiond of the IBC which deal with cross-border insolvency

Answer 8

sect 234 and 235

Question 9

debtor

Answer 9

is a company or individual who owes money

Question 10

section 234 of IBC

Answer 10

empowers the Central Government to enter into bilateral agreements with other countries to resolve situations of cross-border insolvency.

Question 11

section 235

Answer 11

the adjudictaing authority may issue a letter or request to the court of the country with which there is an agreement (under sec 234) to deal with assets situated in the country in a specific manner

Question 12

The ________________– is the most widely accepted legal framework to deal with cross-border insolvency issues.

Answer 12

UNCITRAL model

Question 13

It has been adopted by ___________- countries, including the UK, the US, South Africa, South Korea and Singapore.

Answer 13

49

Question 14

It has been adopted by ___________- countries, including the UK, the US, South Africa, South Korea and Singapore.

Answer 14

49

Question 15

It has been adopted by ___________- countries, including the UK, the US, South Africa, South Korea and Singapore.

Answer 15

49

Question 16

The model law deals with ____________– major principles of cross-border insolvency

Answer 16

four

Direct access to foreign insolvency professionals and foreign creditors to participate in or commence domestic insolvency proceedings against a defaulting debtor.

Recognition of foreign proceedings & provision of remedies.

Cooperation between domestic and foreign courts & domestic and foreign insolvency practitioners.

Coordination between two or more concurrent insolvency proceedings in different countries. The main proceeding is determined by the concept of Centre of Main Interest (COMI).

Question 17

how is COMI determined

Answer 17

The COMI for a company is determined based on where the company conducts its business on a regular basis and the location of its registered office.

Question 18

what is PIRP

Answer 18

Pre-Pack Insolvency Resolution Process

A pre-pack is an agreement for the resolution of the debt of a distressed company through an agreement between secured creditors and investors instead of a public bidding process.

Question 19

when was PIRP introduced in india

Answer 19

july 2021 b the IBC Amendment Act of 2021

Question 20

what is the normal process of resolution under the code

Answer 20

Corporate Insolvency Resolution Process (CIRP)

Under the IBC, stakeholders are required to complete the CIRP within 330 days of the initiation of insolvency proceedings.

Question 21

PIRP is available to

Answer 21

for Micro, Small and Medium Enterprises (MSMEs) with defaults up to Rs 1 crore

Question 22

In March 2021 a sub-committee of the________ recommended a pre-pack framework within the basic structure of the Insolvency and Bankruptcy Code (IBC), 2016.

Answer 22

Insolvency Law Committee (ILC)

Question 23

PIRP is faster than CIRP which is allowed a limit of 330 days, how long does PIRP take

Answer 23

a maximum of 120 days with only 90 days available to the stakeholders to bring the resolution plan to the NCLT.

Question 24

Under the IBC, stakeholders are required to complete the CIRP within 330 days of the initiation of insolvency proceedings.

At the end of December 2020, over 86% of the 1717 ongoing insolvency resolution proceedings had crossed the ___________ threshold.

Answer 24

270-day

Question 25

__________ does not always require approval of a court. Wherever it requires approval, the courts often get guided by commercial wisdom of the parties. But where approved by the court, is binding on all stakeholders.

Answer 25

PIRP

Question 26

what is the name of the law on which the draft framework for cross-border insolvency has been published

Answer 26

UNCITRAL Model Law on Cross-Border Insolvency (1997)

one of its ‘model laws’

Question 27

UNCITRAL

Answer 27

United Nations Commission on International Trade Law

Question 28

it is a subsidiary body of the

Answer 28

U.N. General Assembly

The United Nations Commission on International Trade Law is a subsidiary body of the U.N. General Assembly responsible for helping to facilitate international trade and investment.

Question 29

when was it founded and where is it headquartered

Answer 29

Founded: 1966

Headquarters location: Vienna, Austria

Question 30

who is the director of the uncitral

Answer 30

Director; Anna Joubin-Bret; France

Question 31

UNCITRAL carries out its work at annual sessions held alternately in __________________–.

Answer 31

New York City and Vienna

Question 32

UNCITRAL’s official mandate is __________ through conventions, model laws, and other instruments that address key areas of commerce, from dispute resolution to the procurement and sale of goods.

Answer 32

“to promote the progressive harmonization and unification of international trade law”