Insolvency of individuals, partnership firms & personal guarantors MCQs with Answers

An application for insolvency resolution of a personal guarantor of a corporate debtor whose CIRP is pending before the NCLT, Mumbai Bench, must be filed before:

Under section 96(4), inserted in 2026, the interim-moratorium that ordinarily begins on the filing of an application under section 94 or 95 does not apply where:

After the 2026 amendment of section 99(1) of the Insolvency and Bankruptcy Code, 2016, within how many days of his appointment must the resolution professional examine an application under section 94 or 95 and submit his report recommending its approval or rejection?

Canara Finance, a secured creditor of Rohit, a personal guarantor undergoing insolvency resolution, wants to vote on Rohit's repayment plan for its whole debt. Under section 110:

Under section 106(1A), inserted in 2026, if no repayment plan is submitted within the stipulated period in the insolvency resolution process of a debtor:

Consider the following statements about section 28A, inserted in 2026, on the transfer of a guarantor's assets during the CIRP of the corporate debtor:
(i) A creditor that has taken possession of a guarantor's asset by enforcing its security interest may, with prior approval of the committee of creditors of the corporate debtor, permit its transfer as part of the insolvency resolution.
(ii) If the corporate guarantor is itself in CIRP, the transfer needs approval by not less than sixty-six per cent of the voting share of the guarantor's committee of creditors.
(iii) If the personal guarantor is in insolvency resolution or bankruptcy and the creditor has forfeited or surrendered its right in the asset, the transfer needs approval by more than three-fourths in value of the guarantor's creditors.
(iv) Any surplus over the guarantor's debt is retained by the creditor.
Which of the statements are correct?

Under section 178(1), which debts rank 'secondly' in the distribution of the final dividend in a bankruptcy?

Under section 138, the bankruptcy trustee must apply to the Adjudicating Authority for a discharge order:

In Lalit Kumar Jain v Union of India (2021), what did the Supreme Court hold about the notification of 15 November 2019 that brought into force the provisions of the Code on insolvency of personal guarantors to corporate debtors?

Mahesh is the personal guarantor of a loan to Sun Ltd. Sun Ltd's resolution plan, approved under section 31 of the Insolvency and Bankruptcy Code, 2016, pays the lender only part of its claim. Relying on Lalit Kumar Jain v Union of India (2021), can the lender still proceed against Mahesh for the balance?