Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

The Central Government makes a grant to the Insolvency and Bankruptcy Fund, and the Fund also earns interest on an investment made out of its money. Which statement about section 224(2) is correct?

Both are credited to the Insolvency and Bankruptcy Fund. Section 224(2) provides for credit of Central Government grants and also of interest or other income received from investments made out of the Fund, along with contributions and receipts from other sources. No separate notification is required for interest.

  1. AOnly the grant is credited; interest earned goes to the Board's Fund
  2. BBoth the grant and the interest or other income from investment are credited to the FundCorrect
  3. COnly amounts deposited by persons as contribution can be credited to the Fund
  4. DThe grant is credited, but interest is credited only if the Central Government notifies it

Explanation

Section 224(2) lists credits to the Fund: Central Government grants, contributions deposited by persons, amounts from any other source, and interest or other income from investment of the Fund. So both items are credited. The Board's Fund under section 222 is a separate fund.

Did you get it right without looking?

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

Practise Introduction to Insolvency and Bankruptcy CodeFree diagnostic mock

More Introduction to Insolvency and Bankruptcy Code questions