Insolvency Law
अभ्यास sheet 6
(Practice Questions)
Note from the teacher:
You have to try and write the answers with strict time limit, You have strict 6 minutes to answer
each question, use a timer in your mobile phone.
If you are unable to complete the answer in 6 minutes, then complete the answer with red pen.
Follow the same for all the answers, try and reduce the red portion in every answer that will help
you to complete your paper in time.
All the best!!
1. Goel Industries Ltd. took a loan of Rs. 20 lakhs from DKC Ltd. which was agreed to be repaid on
31.12.2013. Goel Industries Ltd. defaulted in making repayment. On 21.03.2018, DKC Ltd. made an
application to NCLT seeking initiation of Corporate insolvency resolution process against Goel Industries
Ltd. under the IBC, 2016. The application was rejected by the NCLT on the ground that it is barred by
limitation. The legal question arising here is whether the period of limitation for filing insolvency
application commences from the date of commencement of the Act or from the date of default?
2. Oytra Industries Ltd. (Corporate Debtor) owns 10 tea gardens. Out of which, the Central Government has
taken over the control of 4 tea gardens under the Tea Act, 1953. The pesticides, insecticides, herbicides
etc. for the tea gardens were supplied by M/s. SK Ltd. On default in payment M/s. SK Ltd. initiated the CIRP
under Section 9 of the IBC, against the corporate debtor before the NCLT. NCLT dismissed the application
as not maintainable on the ground that the consent of the Central Government was not obtained. Whether
filing application under the IBC is maintainable in this case? Give reasons in support of your answer.
3. Mr. A (operational creditor) supplied raw materials to Kaiwan Ltd.(corporate debtor). At the end of the
month, he raised 3 bills regarding the supplies made. Kaiwan Ltd. did not pay the amounts. Against which
Mr. A filed application to NCLT seeking initiation of CIRP against it after issuing demand notice. NCLT
accepted the application. Kaiwan Ltd. challenged it on the ground that he had asked for further
information on the material supplied by the operational creditor for each of the invoices raised, hence
there is an existing dispute. Is this contention valid? Give reasons in support of your answer.
Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY
