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CS Professional · Paper 7.5

CS Professional Insolvency and Bankruptcy - Law and Practice

Insolvency and Bankruptcy - Law and Practice is an elective in CS Professional, listed under Elective 2 as 7.5. It is a 3-hour written, open book paper. You solve it by applying the IBC provision to the facts, reaching a conclusion, and noting the practical steps, timelines and filings.

This paper tests whether you can apply the Insolvency and Bankruptcy Code, 2016 and its regulations to a practical situation. It covers corporate insolvency, resolution plans, liquidation, voluntary liquidation, pre-packaged resolution, individual and partnership firm insolvency, fresh start, group and cross border insolvency, and the ethics of insolvency professionals. It also touches debt recovery, securitization and winding-up by the Tribunal.

Questions are written and case-based. A typical answer has three parts: the provision that applies, an analysis of the given facts, and a clear conclusion. Where relevant, you add drafting or compliance points such as who files what, before whom, and within what time. The paper is open book, so the exam does not reward memory alone. It rewards speed in finding the right provision and accuracy in applying it.

Students usually score well when they know the process flow of each procedure and can state the timelines and thresholds correctly. Marks are lost by reproducing long text from the book without linking it to the facts. Open book also tempts students to rely on reading during the exam. Those who have not practised finding provisions quickly run short of time. Note that the elective is not split into parts in the verified marks scheme, so cover all chapters evenly.

Insolvency and Bankruptcy - Law and Practice: chapters and topics

Introduction to Insolvency and Bankruptcy Code

Corporate Insolvency Resolution Process

Resolution Strategies (Elective 7.5)

Liquidation of Corporate Person

Voluntary Liquidation of Companies

Adjudication and Appeals for Corporate Persons

Pre-Packaged Insolvency Resolution Process (Elective 7.5)

Debt Recovery and Securitization

Winding-Up by Tribunal

Insolvency Resolution of Individuals and Partnership Firms

Bankruptcy Order for Individuals and Partnership Firms

Bankruptcy for Individuals and Partnership Firms

Fresh Start Process

Professional and Ethical Practices for Insolvency Practitioners

Group Insolvency

Cross Border Insolvency (Elective 7.5)

How to prepare Insolvency and Bankruptcy - Law and Practice

Plan for process understanding first, then speed with your open book material. Work through the chapters in groups so that related procedures stay connected in your mind.

  1. Start with the introduction chapter. Learn the key definitions, the main authorities (Adjudicating Authority, the Board, insolvency professionals, information utilities) and the overall scheme of the Code.
  2. Study the Corporate Insolvency Resolution Process as a timeline. Write the stages in order: application, admission, moratorium, public announcement, committee of creditors, resolution plan, approval. Note who acts at each stage and the time limits.
  3. Link Resolution Strategies, Pre-Packaged Insolvency Resolution Process and Liquidation to the CIRP. For each, note when it applies, who can start it and how it differs from the regular process.
  4. Cover voluntary liquidation, winding-up by Tribunal and debt recovery and securitization as a group. Compare the grounds, the forum and the procedure so you do not mix up the Companies Act route with the IBC route.
  5. Study the individual and partnership firm chapters together: insolvency resolution, bankruptcy order, bankruptcy and fresh start. Make a short comparison of eligibility, applicant, forum and effect of each.
  6. Finish with the professional ethics, group insolvency and cross border insolvency chapters. These are shorter and easier to revise, but they are often asked as short application questions.
  7. Prepare your open book material. Tab the Code, key regulations and your own one-page process charts. Use the official text for the June 2027 session and check that every amendment you note is current.
  8. Practise at least a few full papers under timed conditions. For every case, write the provision, the facts applied and the conclusion. Then check how fast you found each provision.

Time management in the exam

  • You get 3 hours plus 15 minutes of reading time. Use the reading time to mark the questions you can answer fastest and the ones that need a lookup.
  • Divide time by marks. Keep a rough rate per mark and note the clock after each answer so one long case does not eat the rest of the paper.
  • Answer lookup-heavy questions in two passes. On the first pass, write the framework and conclusion. Return to confirm the section or regulation reference if time remains.
  • Do not copy long passages from the book. Quote only the rule or time limit you need, then spend your time on the facts.
  • Keep your tabs and charts in a fixed order so you can find any chapter in seconds.
  • Leave the last 10 to 15 minutes to read through, check numbers and timelines, and make sure every case has a conclusion.

Mistakes that cost marks in Insolvency and Bankruptcy - Law and Practice

  • Treating the open book as a substitute for preparation

    Fix: Learn the process flow of each chapter in advance. Use the book only to confirm exact wording, limits and references.

  • Copying the provision without applying it to the facts

    Fix: Use a fixed structure: provision, application to the given facts, conclusion. Spend most of the answer on the middle step.

  • Mixing up corporate and individual procedures

    Fix: Keep a comparison chart for each. Check the type of debtor in the question before you start writing.

  • Getting timelines and thresholds wrong

    Fix: Build a one-page table of time limits and thresholds from the current official text. Revise it often and verify it against the Code in the exam.

  • Using outdated or repealed law

    Fix: Study only from current text for the June 2027 session. When you contrast old law with new, say so clearly.

  • Ignoring drafting and compliance points

    Fix: For each procedure, note the application, the authority it goes to, who must be informed, and the key documents. Add these to your answer.

Insolvency and Bankruptcy - Law and Practice: frequently asked questions

Is Insolvency and Bankruptcy - Law and Practice open book?

Yes. Elective papers in CS Professional are open book examinations. Even so, the paper is case-based, so you must know how to apply the law quickly.

Which group is this paper in?

It is Elective 7.5, a choice under Elective 2, which is Paper 7 in Group 2. You choose one elective for Paper 7.

How is the paper structured and how long is it?

It is a descriptive written paper of 3 hours, with 15 minutes extra for reading the question paper. There are no MCQs and no negative marking.

What marks do I need to pass?

You need at least 40% in each paper and 50% in the aggregate of the group at one sitting. If you fail the group but score 60% or more in a paper and at least 25% in the others, you may claim exemption in that paper by applying before the enrolment deadline.

Which chapters should I study first?

Begin with the introduction and the Corporate Insolvency Resolution Process, since later chapters on resolution strategies, liquidation and pre-packs build on them. Then move to individuals and partnership firms, and finish with ethics, group and cross border insolvency.