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Which statement about the definition of “person” in section 3(23) of the Insolvency and Bankruptcy Code, 2016 is correct?

Question and options

Which statement about the definition of “person” in section 3(23) of the Insolvency and Bankruptcy Code, 2016 is correct?

  1. It covers companies and trusts but not a Hindu undivided family

  2. It covers individuals and companies and also those resident outside India

  3. It covers individuals and companies but not a partnership

  4. It covers bodies incorporated in India but not a limited liability partnership

Answer and explanation

Correct answer: B - It covers individuals and companies and also those resident outside India

Section 3(23) of the Insolvency and Bankruptcy Code, 2016 defines person to include an individual, a Hindu undivided family, a company, a trust, a partnership, a limited liability partnership and any other entity established under a statute, and it includes a person resident outside India. The definition is inclusive, so none of these forms is excluded.

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