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Bankruptcy · Unit 2

Corporate Insolvency and Liquidation

Unit 2 of Bankruptcy Laws (syllabus: Module II — the corporate insolvency resolution process and the fast track process; voluntary liquidation and the liquidation process; the pre-packaged insolvency resolution process; the adjudicating and appellate authorities; and offences and penalties). Below: what the unit covers, the provisions it turns on, and the cases an examiner expects you to name.

What this unit covers

  • Who may initiate the corporate insolvency resolution process, and on what event?
  • How does a financial creditor's application differ from an operational creditor's?
  • What is the time limit for the corporate insolvency resolution process?
  • What does the moratorium prohibit, and whom does it fail to protect?
  • Who sits on the committee of creditors, and who is kept off it?
  • What are the committee's voting majorities?
  • On what terms is a resolution plan approved, and what does approval do?
  • Who is ineligible to be a resolution applicant?
  • When is liquidation ordered?
  • What is in the liquidation estate, and what is kept out of it?
  • What choice does a secured creditor have in liquidation?
  • State the waterfall in section 53.
  • Which transactions can be avoided in a corporate liquidation or resolution?
  • Which tribunal decides a corporate insolvency, and what happens to the guarantor's case?

Treat that list as a self-test: recite each topic's rule from memory before you open its cases.

Provisions

Leading cases

  • No judgment is available for this subject; the nearest authority is s. 6 read with s. 3(12) and s. 4 of the Code.
  • No judgment is available for this subject; the nearest authority is ss. 7
  • No judgment is available for this subject; the nearest authority is s. 12 of the Code
  • No judgment is available for this subject; the nearest authority is s. 14 of the Code
  • No judgment is available for this subject; the nearest authority is s. 21 of the Code
  • No judgment is available for this subject; the nearest authority is ss. 21(8)
  • No judgment is available for this subject; the nearest authority is ss. 29A
  • No judgment is available for this subject; the nearest authority is s. 29A of the Code
  • No judgment is available for this subject; the nearest authority is s. 33 of the Code
  • No judgment is available for this subject; the nearest authority is s. 36 of the Code
  • No judgment is available for this subject; the nearest authority is ss. 52 and 53 of the Code
  • No judgment is available for this subject; the nearest authority is s. 53 of the Code
  • No judgment is available for this subject; the nearest authority is ss. 43 to 51 of the Code
  • No judgment is available for this subject; the nearest authority is s. 60 of the Code

Exam questions on this unit

In this paper