[Solved] Consider the following statements regarding Insolvency and Bankruptcy Code (IBC): Statement 1:... Which of the above statements is/are correct? | Banking Awareness

Banking Awareness - Banking Acts, Reforms & Risk Management

Consider the following statements regarding Insolvency and Bankruptcy Code (IBC): Statement 1: IBC provides a time-bound insolvency resolution process. Statement 2: IBC is supervised through judicial authorities. Which of the above statements is/are correct?

AOnly Statement 2 is correct

BBoth Statement 1 and Statement 2 are correct

CNeither Statement 1 nor Statement 2 is correct

DOnly Statement 1 is correct

Step-by-Step Solution

Step 1: Evaluate Statement 1
IBC mandates strict timelines for insolvency resolution.
Step 2: Evaluate Statement 2
IBC proceedings are supervised by adjudicating authorities like NCLT.
Final Answer:
Both Statement 1 and Statement 2 are correct → Option B
Quick Check:
Time-bound + court-supervised = IBC ✅

Quick Trick: IBC always involves time limits and courts.

Common Mistakes:

MISTAKES

Thinking IBC is a bank-only internal process.

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Which of the above statements is/are correct?

Step 1: Evaluate Statement 1

Step 2: Evaluate Statement 2

Final Answer:

Quick Check:

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