UPSC Prelims Practice Questions — DFS organises Half-Day Workshop on Insolvency and Bankruptcy (Amendment) Act, 2026

Q1. Which one of the following bodies has been entrusted with framing the regulations operationalising the Creditor-Initiated Insolvency Resolution Process (CIIRP) introduced by the Insolvency and Bankruptcy Code (Amendment) Act, 2026?

• A. Reserve Bank of India
• B. Securities and Exchange Board of India
• C. Insolvency and Bankruptcy Board of India
• D. National Company Law Tribunal

Q2. The Creditor-Initiated Insolvency Resolution Process (CIIRP), recently in the news, was introduced into the Indian insolvency framework by which one of the following enactments?

• A. The Insolvency and Bankruptcy Code (Amendment) Act, 2021
• B. The Companies (Amendment) Act, 2026
• C. The Insolvency and Bankruptcy Code (Amendment) Act, 2026
• D. The SARFAESI (Amendment) Act, 2026

Q3. Under the Insolvency and Bankruptcy Code, 2016, which one of the following entities is statutorily tasked with collecting, authenticating, storing and providing access to financial information of debtors to facilitate insolvency resolution?

• A. Insolvency Professional Agency
• B. Information Utility
• C. Insolvency and Bankruptcy Board of India
• D. Resolution Professional

Q4. Under the Insolvency and Bankruptcy Code, 2016, which one of the following is the appellate authority that hears appeals against orders passed by the Insolvency and Bankruptcy Board of India?

• A. National Company Law Tribunal (NCLT)
• B. Debt Recovery Appellate Tribunal (DRAT)
• C. National Company Law Appellate Tribunal (NCLAT)
• D. Supreme Court of India

Q5. With reference to the origin of the Insolvency and Bankruptcy Code, 2016, consider the following statements: Which of the statements given above is/are correct?

1. The Bankruptcy Law Reforms Committee (BLRC) that drafted the Code was constituted by the Ministry of Corporate Affairs in 2014.
2. The BLRC was chaired by Dr. T. K. Viswanathan.
3. The BLRC submitted its final report along with a draft Insolvency and Bankruptcy Bill in November 2015.
4. Section 243 of the Code expressly repealed the Sick Industrial Companies (Special Provisions) Act, 1985.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 3 and 4 only
• D. 1, 2 and 4

Q6. The Pre-packaged Insolvency Resolution Process (PPIRP), available exclusively to corporate debtors classified as Micro, Small and Medium Enterprises, was introduced into the Insolvency and Bankruptcy Code, 2016 through which one of the following enactments?

• A. The Insolvency and Bankruptcy Code (Amendment) Act, 2018
• B. The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020
• C. The Insolvency and Bankruptcy Code (Amendment) Act, 2021
• D. The Insolvency and Bankruptcy Code (Amendment) Act, 2026

Q7. Which one of the following is the principal adjudicating authority before which an application for initiating the Pre-packaged Insolvency Resolution Process in respect of a corporate MSME debtor is to be filed?

• A. Debt Recovery Tribunal
• B. National Company Law Tribunal
• C. National Company Law Appellate Tribunal
• D. Insolvency and Bankruptcy Board of India

Q8. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces an enabling provision for cross-border insolvency that is principally modelled on which one of the following international instruments?

• A. UNCITRAL Model Law on Cross-Border Insolvency, 1997
• B. UNCITRAL Legislative Guide on Insolvency Law, 2004
• C. EU Insolvency Regulation (Recast), 2015
• D. Hague Convention on Choice of Court Agreements, 2005

Q9. Which one of the following is the nodal ministry of the Government of India for administering the Insolvency and Bankruptcy Code, including the cross-border and group insolvency provisions introduced by the 2026 Amendment Act?

• A. Ministry of Finance, Department of Financial Services
• B. Ministry of Corporate Affairs
• C. Ministry of Law and Justice, Department of Legal Affairs
• D. Ministry of External Affairs

Q10. As per the data released by the Insolvency and Bankruptcy Board of India (IBBI), approximately how many Corporate Insolvency Resolution Processes (CIRPs) had been admitted under the Insolvency and Bankruptcy Code, 2016 as of end-October 2025?

• A. About 4,500
• B. About 6,200
• C. About 8,700
• D. About 12,500

Q11. According to the Reserve Bank of India's Report on Trends and Progress of Banking in India 2024-25, which one of the following was the largest channel of recovery of stressed assets by Scheduled Commercial Banks in 2024-25?

• A. Lok Adalats
• B. Debt Recovery Tribunals (DRTs)
• C. SARFAESI Act, 2002
• D. Insolvency and Bankruptcy Code, 2016

Q12. With reference to the adjudicating and appellate framework under the Insolvency and Bankruptcy Code, 2016, consider the following statements: 1. The National Company Law Tribunal is the adjudicating authority for insolvency and liquidation of companies and limited liability partnerships, whereas the Debt Recovery Tribunal is the adjudicating authority for insolvency and bankruptcy of individuals and partnership firms. 2. Appeals from orders of the National Company Law Tribunal under the Code lie to the National Company Law Appellate Tribunal, whereas appeals from orders of the Debt Recovery Tribunal under the Code lie to the Debt Recovery Appellate Tribunal. 3. An appeal from an order of the National Company Law Appellate Tribunal under the Code lies to the High Court of the State in which the registered office of the corporate debtor is situated. Which of the statements given above is/are correct?

1. The National Company Law Tribunal is the adjudicating authority for insolvency and liquidation of companies and limited liability partnerships, whereas the Debt Recovery Tribunal is the adjudicating authority for insolvency and bankruptcy of individuals and partnership firms.
2. Appeals from orders of the National Company Law Tribunal under the Code lie to the National Company Law Appellate Tribunal, whereas appeals from orders of the Debt Recovery Tribunal under the Code lie to the Debt Recovery Appellate Tribunal.
3. An appeal from an order of the National Company Law Appellate Tribunal under the Code lies to the High Court of the State in which the registered office of the corporate debtor is situated.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q13. With reference to the order of priority for distribution of liquidation proceeds under Section 53 of the Insolvency and Bankruptcy Code, 2016, consider the following statements: 1. Workmen's dues for the period of twenty-four months preceding the liquidation commencement date rank equally with debts owed to a secured creditor who has relinquished security. 2. Dues owed to the Central Government and State Governments rank above financial debts owed to unsecured creditors. 3. The insolvency resolution process costs and the liquidation costs are to be paid in full ahead of all other claims. 4. Equity shareholders rank above preference shareholders in the distribution waterfall. Which of the statements given above are correct?

1. Workmen's dues for the period of twenty-four months preceding the liquidation commencement date rank equally with debts owed to a secured creditor who has relinquished security.
2. Dues owed to the Central Government and State Governments rank above financial debts owed to unsecured creditors.
3. The insolvency resolution process costs and the liquidation costs are to be paid in full ahead of all other claims.
4. Equity shareholders rank above preference shareholders in the distribution waterfall.

• A. 1 and 3 only
• B. 2 and 4 only
• C. 1, 2 and 3
• D. 3 and 4 only

Q14. Under Section 53 of the Insolvency and Bankruptcy Code, 2016, which one of the following has the highest priority in the distribution of proceeds from the sale of liquidation assets of a corporate debtor?

• A. Workmen's dues for the twenty-four months preceding the liquidation commencement date
• B. Debts owed to a secured creditor who has relinquished its security interest
• C. The insolvency resolution process costs and the liquidation costs
• D. Financial debts owed to unsecured creditors