CS Professional · June 2025 · Paper 7.5
CS Professional Insolvency and Bankruptcy - Law and Practice June 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a)(i) | 2 | Purpose of the Section 14 moratorium and its application to cheque dishonour proceedings | Corporate Insolvency Resolution Process |
| 1(a)(ii) | 2 | Nature of cheque dishonour proceedings as quasi-criminal for moratorium purposes | Corporate Insolvency Resolution Process |
| 1(a)(iii) | 2 | Effect of the landmark ruling on creditors pursuing cheque dishonour cases during CIRP | Corporate Insolvency Resolution Process |
| 1(a)(iv) | 2 | Whether the corporate moratorium protects a personal guarantor who issued a dishonoured cheque | Corporate Insolvency Resolution Process |
| 1(a)(v) | 4 | Whether arbitration proceedings are covered by the Section 14 moratorium | Corporate Insolvency Resolution Process |
| 1(a)(vi) | 4 | Scope of moratoria under Sections 14 and 85: subject-specific and beyond legal proceedings | Corporate Insolvency Resolution Process |
| 1(b)(i) | 3 | Whether a resolution professional can withdraw or modify an approved resolution plan filed before the adjudicating authority | Corporate Insolvency Resolution Process |
| 1(b)(ii) | 3 | Swiss challenge method in insolvency asset sales and judicial acceptance | Resolution Strategies (Elective 7.5) |
| 1(b)(iii) | 3 | Liquidator options for rapidly perishable or deteriorating stock | Liquidation of Corporate Person |
| 2(b) | 6 | Recognition of a foreign insolvency proceeding against an Indian corporate debtor in CIRP | Cross Border Insolvency (Elective 7.5) |
| 2(c)(i) | 1 | Significance of selective commencement under Section 1(3) for personal guarantor provisions | Insolvency Resolution of Individuals and Partnership Firms |
| 2(c)(ii) | 2 | Nature of personal guarantor liability and validity of the 2019 notification | Insolvency Resolution of Individuals and Partnership Firms |
| 2(c)(iii) | 1 | Effect of the personal guarantor ruling on financial creditors | Insolvency Resolution of Individuals and Partnership Firms |
| 2(c)(iv) | 1 | Implications of the personal guarantor ruling for the corporate debtor | Insolvency Resolution of Individuals and Partnership Firms |
| 2(c)(v) | 1 | Contract law provision on surety liability bearing on the ruling | Insolvency Resolution of Individuals and Partnership Firms |
| 2(d) | 5 | Power of adjudicating authority to direct police assistance to resolution professional or liquidator | Adjudication and Appeals for Corporate Persons |
| 3(a)(i) | 3 | Computation of surplus available to shareholders after liquidation costs and unrealisable assets | Voluntary Liquidation of Companies |
| 3(a)(ii) | 6 | Shareholder-wise distribution schedule in voluntary liquidation | Voluntary Liquidation of Companies |
| 3(a)(iii) | 3 | ROC filings and change in MCA master data status on commencement of voluntary liquidation | Voluntary Liquidation of Companies |
| 3(a)(iv) | 2 | Annual filing obligations during voluntary liquidation before dissolution order | Voluntary Liquidation of Companies |
| 3(a)(v) | 2 | Intimation to ROC of the dissolution order and its reflection on the MCA portal | Voluntary Liquidation of Companies |
| 3(b) | 9 | Matching landmark IBC judgments with their ratio on constitutionality, moratorium and attachment issues | Introduction to Insolvency and Bankruptcy Code |
| 4(a)(i) | 1 | Primary duties of a liquidator under Section 35 | Liquidation of Corporate Person |
| 4(a)(ii) | 1 | Significance of going concern sale in liquidation | Liquidation of Corporate Person |
| 4(a)(iii) | 1 | Impact of Regulation 32 modes of sale on liquidator actions | Liquidation of Corporate Person |
| 4(a)(iv) | 1 | Concerns raised against a liquidator selling assets piecemeal | Liquidation of Corporate Person |
| 4(a)(v) | 1 | Role of compromise or arrangement under Section 230 during liquidation | Liquidation of Corporate Person |
| 4(a)(vi) | 1 | Overall outcome of appellate rulings on liquidator conduct | Liquidation of Corporate Person |
| 4(a)(vii) | 1 | Contribution of the ruling to interpreting liquidator powers and duties | Liquidation of Corporate Person |
| 4(a)(viii) | 1 | Implications of the ruling for future liquidation proceedings | Liquidation of Corporate Person |
| 4(a)(ix) | 1 | Importance of value maximisation of corporate debtor assets in liquidation | Liquidation of Corporate Person |
| 4(a)(x) | 1 | Piecemeal asset sale versus sale as a going concern | Liquidation of Corporate Person |
| 4(b)(i) | 2 | Constitution of committee of creditors where there are no financial creditors | Corporate Insolvency Resolution Process |
| 4(b)(ii) | 2 | Availability of caveat applications under the SARFAESI framework | Debt Recovery and Securitization |
| 4(b)(iii) | 2 | Secured creditor powers over managerial compensation arrangements of the borrower | Debt Recovery and Securitization |
| 4(b)(iv) | 2 | Eligibility thresholds of income and assets for a fresh start application | Fresh Start Process |
| 4(b)(v) | 2 | Overriding effect of IBC over SARFAESI despite both having non obstante clauses | Introduction to Insolvency and Bankruptcy Code |
| 4(c) | 5 | Exceptions to the bar on success-based fees for insolvency professionals | Professional and Ethical Practices for Insolvency Practitioners |
What stood out
- The paper is mixed format: Q2(a) contained eight 1-mark case-based MCQs, all on pre-packaged insolvency for MSMEs, and the remaining 92 marks were written; there were no alternative questions.
- Marks were highly fragmented, with 38 written entries and many 1 or 2 mark sub-parts built around a single fact pattern or judgment.
- Liquidation dominated when corporate and voluntary liquidation are combined (29 marks), including a numerical shareholder distribution schedule and MCA filing steps in voluntary liquidation.
- The paper was judgment-centric: moratorium versus cheque dishonour proceedings, validity of personal guarantor provisions, recognition of foreign insolvency proceedings and a 9-mark match-the-ruling exercise.
- Statement-correctness questions in Q4(b) tested the interface of IBC with SARFAESI and the fresh start thresholds, rewarding precise knowledge of limits rather than descriptive answers.
Practise the chapters that carried the marks
Corporate Insolvency Resolution Process, Voluntary Liquidation of Companies, Liquidation of Corporate Person: study guides and practice questions in the CS Professional format.