chap 5 recovery management

Which of the following is not correct with respect to Lok Adalat?

• Borrower can appeal against the decree passed by Lok Adalat
• All accounts with a maximum ceiling of 20 lakh can be dealt under Lok Adalat
• Lok Adalat proceedings are cost effective
• Cases filed with DRT can be considered for compromise

Which of the following situations is most ideal for being dealt with Lok Adalat?

• Both borrower and banker being ready for a compromise
• The total amount of outstanding is Rs. 25 lakh
• The borrower is a wilful defaulter
• The loan has a security which has a good marketable value

Which of the following is a low cost avenue for recovery?

• Lok Adalat
• DRT
• SARFAESI
• Filing a suit

Who among the following does not participate in the regular loan recovery cases in DRT?

• Liquidator
• Presiding officer
• Recovery officer
• Registrar

Cases against loans with outstanding amount less than 20 lakh must be dealt in __________.

• Civil court
• Lok Adalat
• DRT
• NCLT

Which of the following is not a type of suit?

• Principle suit
• Money suit
• Composite suit
• Summary suit

Fast track insolvency resolution process is not available for

• Joint stock companies
• Unlisted companies with total assets less than 1 crore for the PY
• Small company as defined in the Companies Act
• Start-up other than partnership

Which of the following in not true with respect to monetary value of cases taken up for recovery under each of the following process/avenues?

• SARFAESI = atleast 5 lakh
• DRT = above 20 lakh
• IBC = atleast 1 lakh
• Lok Adalat = maximum ceiling of 20 lakh

Which among the following is not a pillar of IBC?

• Registrar
• Adjudicating authority
• Insolvency professional
• Regulator

Identify the incorrect sentence

• Cases in DRT cannot be taken up at Lok Adalat
• No recovery action can be pursued against a borrower who has filed for insolvency
• If a legal notice is not sent to a borrower while filing a suit, the bank cannot claim the court expenses during the time of settlement
• There is no appeal against the decree passed by Lok Adalat