Pre-packaged insolvency resolution for MSMEs MCQs with Answers

What minimum amount of default has the Central Government specified, under the second proviso to section 4, for the pre-packaged insolvency resolution process of MSMEs?

Which of the following is NOT a condition under section 54A(2) for a corporate debtor to apply for the pre-packaged insolvency resolution process?

Under section 54D, the pre-packaged insolvency resolution process must be completed within how many days of the pre-packaged insolvency commencement date, and within how many days must the resolution professional submit the CoC-approved plan to the Adjudicating Authority?

Consider the following statements about management during the pre-packaged insolvency resolution process:
(i) Management of the corporate debtor's affairs continues to vest in its Board of Directors or partners.
(ii) The committee of creditors may, by not less than sixty-six per cent of voting shares, resolve to vest management in the resolution professional.
(iii) On such a resolution, the Adjudicating Authority must vest management in the resolution professional whether or not there was fraud or mismanagement.
(iv) The resolution professional may attend meetings of the Board of Directors of the corporate debtor.
Which of the statements are correct?

In the pre-packaged process of Sigma Components Ltd, an MSME, the base resolution plan offers operational creditors only sixty per cent of their confirmed claims. Under section 54K of the Insolvency and Bankruptcy Code, 2016, what follows?

A financial creditor files a section 7 application against Mehta Tools Pvt Ltd, an MSME. Eight days later, while that application is pending, Mehta Tools files an application under section 54C of the Insolvency and Bankruptcy Code, 2016 for a pre-packaged process. Which application must the Adjudicating Authority dispose of first?

After the 2026 amendment of section 54A, what approval of unrelated financial creditors is needed before a corporate debtor files for the pre-packaged insolvency resolution process?

Under section 54-O, during a pre-packaged insolvency resolution process, the committee of creditors may resolve to initiate a CIRP against the corporate debtor by a vote of: