Mumbai University Solved Question Papers
Bankruptcy Laws
Previous Year Question Paper with Solution
LLB 3 years · Sem 4
Oct 2024 - 75/25 Examination
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LLB 3 years Sem 4 Bankruptcy Laws Oct 2024 - 75/25 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
Published by munotes.in, Mumbai.
Model answers written and edited by the munotes.in editorial desk.
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The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by the University of Mumbai at the Oct 2024 - 75/25 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Oct 2024 - 75/25 examination, in the order it was set.
MarksPage
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Oct 2024 - 75/25 examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 2½ hours · Total marks 75 · 21 questions answered
Instructions printed on the paper
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Q.1
Q.1: Answer any six in one-two sentences
12 Marks - 2 marks each
(a)When will the provisions of insolvency and liquidation of corporate persons be applicable on a corporate person?[2]
Answer
The provisions on insolvency and liquidation of corporate persons are in Part II of the Code. Section 4(1) applies Part II to the insolvency and liquidation of corporate debtors where the minimum amount of the default is one crore rupees. The figure was raised from one lakh rupees by notification S.O. 1205(E), with effect from 24 March 2020.
So four conditions must be met.
- A corporate person. A company, a limited liability partnership, or another body incorporated with limited liability (section 3(7)). A financial service provider, such as a bank, is excluded unless notified under section 227.
- A debt. It must owe a debt to someone, which makes it a corporate debtor (section 3(8)).
- A default. The debt, or part of it, has become due and has not been paid (section 3(12)).
- One crore rupees. The amount in default is at least one crore rupees (section 4).
Voluntary liquidation is different. A corporate person that has not committed any default may liquidate itself under section 59. No threshold applies there.
In Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407 the Supreme Court held that once the NCLT finds a default, it must admit the creditor's application. Default, not a weak balance sheet, opens Part II.
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