Skip to content

CMA Final · Corporate and Economic Laws · Insolvency and Bankruptcy Code, 2016

Section 1(3) of the Insolvency and Bankruptcy Code, 2016 contains a proviso. What does it permit?

The proviso allows the Central Government to appoint different dates for different provisions of the Code. A reference in any such provision to the Code's commencement is construed as a reference to commencement of that particular provision.

  1. AThe Central Government may appoint different dates for different provisions, and a reference to commencement of the Code in a provision means commencement of that provisionCorrect
  2. BThe National Company Law Tribunal may defer commencement of any chapter for up to one year
  3. CThe Insolvency and Bankruptcy Board may bring provisions into force by regulation
  4. DThe Code may be brought into force only after each State Legislature ratifies it

Explanation

The proviso to Section 1(3) lets the Central Government notify different dates for different provisions. Any reference in such a provision to the commencement of the Code is read as a reference to the commencement of that provision. The other options attribute commencement powers to bodies that do not have them.

Did you get it right without looking?

One question tells you little. A timed set on Insolvency and Bankruptcy Code, 2016 shows your real accuracy, how long you take and where you lose marks.

Practise Insolvency and Bankruptcy Code, 2016Free diagnostic mock

More Insolvency and Bankruptcy Code, 2016 questions