UPSC Prelims Practice Questions — No stay on Adani’s JAL buy, NCLAT to decide pronto: SC

Q1. In the Corporate Insolvency Resolution Process of Jaiprakash Associates Ltd (JAL), how many parties submitted final bids for the company?

  • A. Three
  • B. Four
  • C. Five
  • D. Seven

Q2. With reference to the parties that submitted final bids for Jaiprakash Associates Ltd, consider the following: 1. Vedanta Ltd 2. Dalmia Cement 3. Jindal Power 4. Adani Power Which of the above is/are NOT correctly listed as a final bidder?

  1. Vedanta Ltd
  2. Dalmia Cement
  3. Jindal Power
  4. Adani Power
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q3. Consider the following statements comparing the two rival resolution proposals for Jaiprakash Associates Ltd: 1. Adani Enterprises' approved plan (~₹14,535 crore) carried a lower headline value than Vedanta's revised offer (~₹17,926 crore). 2. The Committee of Creditors approved Adani's plan even though Vedanta's revised offer was higher in value. 3. Under the IBC, the Committee of Creditors is always legally bound to select the highest-value resolution plan. Which of the statements given above is/are correct?

  1. Adani Enterprises' approved plan (~₹14,535 crore) carried a lower headline value than Vedanta's revised offer (~₹17,926 crore).
  2. The Committee of Creditors approved Adani's plan even though Vedanta's revised offer was higher in value.
  3. Under the IBC, the Committee of Creditors is always legally bound to select the highest-value resolution plan.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. In the context of the JAL matter, the term 'Corporate Insolvency Resolution Process (CIRP)' most precisely refers to:

  • A. A time-bound process under the IBC to resolve the insolvency of a corporate debtor, either through an approved resolution plan or liquidation
  • B. A voluntary winding-up of a solvent company by its own shareholders
  • C. A recovery proceeding by a single secured creditor before a Debts Recovery Tribunal
  • D. A compromise or arrangement scheme sanctioned only by a High Court

Q5. Which single entity held the largest voting share as a financial creditor in the Committee of Creditors of Jaiprakash Associates Ltd?

  • A. ICICI Bank
  • B. State Bank of India
  • C. National Asset Reconstruction Company Ltd (NARCL)
  • D. Life Insurance Corporation of India

Q6. The Code under which Jaiprakash Associates Ltd is undergoing its insolvency resolution was enacted in which year?

  • A. 2002
  • B. 2013
  • C. 2016
  • D. 2019

Q7. Which statutory body is the principal regulator of insolvency professionals and the resolution process under the Insolvency and Bankruptcy Code, 2016?

  • A. Securities and Exchange Board of India (SEBI)
  • B. Insolvency and Bankruptcy Board of India (IBBI)
  • C. Reserve Bank of India (RBI)
  • D. National Company Law Tribunal (NCLT)

Q8. With reference to the JAL insolvency case, consider the following statements: 1. Jaiprakash Associates Ltd is the corporate debtor. 2. Adani Enterprises Ltd is the successful resolution applicant. 3. The CIRP was triggered on a petition filed by ICICI Bank. 4. A resolution plan must secure 100% of the CoC voting share to be approved. Which of the above is/are correctly identified?

  1. Jaiprakash Associates Ltd is the corporate debtor.
  2. Adani Enterprises Ltd is the successful resolution applicant.
  3. The CIRP was triggered on a petition filed by ICICI Bank.
  4. A resolution plan must secure 100% of the CoC voting share to be approved.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4