Question

As per the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, which of the following is true? 

I. Home Buyers Recognized as Financial Creditors.  
II. Extension of the application of the Code to personal  guarantors of Corporate Debtors and Proprietorship  firms 
III. A person shall be eligible to submit a resolution plan if such a person is an undischarged insolvent.  
IV. A resolution applicant cannot withdraw a resolution application, from the National Company Law Tribunal (NCLT), after such a process has been initiated.  

Options

• I and II

• I, III and IV  

• I, II and IV 

• All of the above  

Answer 1

I and II

Explanation:

The Ordinance amends the Insolvency and Bankruptcy Code, 2016 to clarify that allottees under a real estate project should be treated as financial creditors. The voting threshold for routine decisions taken by the committee of creditors has been reduced from 75% to 51%. For certain key decisions, this threshold has been reduced to 66%. The Ordinance allows the withdrawal of a resolution application submitted to the NCLT under the Code. This decision can be taken with the approval of 90% of the committee of creditors.