Reserve Bank, in consultation with the Government, from time to time, from the date of

export.
(c) The amount representing the full export value of services exported shall be realised
within nine months or within such period as may be specified by the Reserve Bank, in
consultation with the Government, from time to time, from the date of export.
(d) The amount representing the full export value of services exported shall be realised and
repatriated to India within nine months or within such period as may be specified by the
Reserve Bank, in consultation with the Government, from time to time, from the date of
export.
13.3 Quantify the amount of penalty, if applicable, if father of Ramesh, Mr. Narottam remit him USD
275,000 in 2021-22 through authorised dealer. Ramesh also studied in same HEI, where his
friend Manish did and required to pay same amount of tuition fee:
(a) Mr. Narottam doesn’t violate any provision, because he remitted the amount through
authorised dealer.
(b) Mr. Narottam violates the provisions, therefore liable for penalty up to USD 25000.
(c) Mr. Narottam violates the provisions, therefore liable for penalty up to USD 75000.
(d) Mr. Narottam violates the provisions, therefore liable for penalty up to USD 247500.
13.4 Regarding the residential status of Mr. Ramesh Dayal identify the correct statement out of
following;
(a) Mr. Ramesh is person resident in India for both FY 2021-22 and 2022-23.
(b) Mr. Ramesh is person resident outside India for both FY 2021-22 but person resident in
India for FY 2022-23.
(c) Mr. Ramesh is person resident in India for FY 2021-22 but person resident outside India
for FY 2022-23.
(d) Mr. Ramesh is person resident outside India for both FY 2021-22 and 2022-23.
14. Amol Open University of Languages, is a private university established under a State Act. The
objective behind the establishment of university was to provide degree/ diploma/ certificate course to
the students, an online leaning platform to learn all the prominent languages, which are being spoken
in the major part of the world. This will generate to the employability of the students in different part of
the world, since they are familiar with the language of that country. Since this being an online lea rning
platform, the students can pursue the programme simultaneously with doing their regular academic /
professional course. The examination will also be held online, by sitting at home, through their PC/
Laptop in a protected environment, after completing certain hours of learning modules.
The University has made a tie up arrangements with experts in the foreign languages. They guide the
students online and also through the pre-recorded videos.
Several Foreign Governments intend to offer donations / contributions for the development of their
language. The respective countries have offered to give foreign currency contribution for the promotion
of these languages.
Based on the above scenario, answer the following questions: (4 Marks)
14.1 The Certificate of Registration to the University was given only for the purpose of preparing the
educational material (print or soft copy), paying of honorarium to teachers and IT related
 infrastructure for online classes only. Whether Certificate of Registration can be used for
receiving foreign contribution for building the infrastructure of the University Campus:
(a) The funds once received can be utilised for any other purposes.
(b) The funds are being utilised for building construction i.e. for University’s objective so it
can be used.
(c) No, the purpose for which the Certificate of Registration has been granted, cannot be
diverted. The end use of the funds has to ensured to utilise in that purpose only.
(d) It is on the discretion of the University Officials, how to utilise it.
14.2 Whether Foreign contribution so received by the University can be invested in any Mutual Fund
Scheme:
(a) Mutual Fund Scheme are safe, hence can be invested
(b) All Mutual Fund Schemes are not safe and very volatile in nature.
(c) The surplus funds can invested only debt based secure investments
(d) It depends upon the discretion of the University officials.
15. Hangout Casa was a very prominent chain of Chinese restaurant with presence all around the nation.
Most of its outlets/restaurants are operating on franchise model, but some are company owned as well
and operating at lease-hold premises. Hangout Casa had a great reputation, its outlets have award-
winning chefs and tastefully designed interiors. Much of its business came from weekend parties and
get-to-gathers.
Due to health–related-awareness among the people at large, the consumption level of fast food is
declining. Covid also jolted the liquidity position badly. The competition from low price alternative
options also dented the sales revenue of almost all the retail outlets. It tried to widen the range of item
offered, likewise recently it started selling ice creams of Rim Jim Brand. Effort to negotiate with lessor
to reduce the rent were largly unsuccessful. Eventually the business became insolvent.
Suppliers of food, beverages and utilities were unpaid for supplies provided in the previous 45 -60
days, amounting to around Rs. 9,50,000. There were lease rental arrears that included the rent for
one month amounting to Rs. 50,000 towards landlord, Mr. Deepak (the landlord had received advance
rent for three months, lease deed provided for one-month rent as security and one-month rent as
advance). Amount of Rs. 78,000 is also due towards Rim Jim Limited, whose ice-cream it sells. Though
somehow it managed to pay bank dues to avoid any legal actions.
Hangout Casa also had a secured creditor, ‘Punji Bank’. The bank indicated that it did not wish to
appoint a receiver/ file for insolvency as the accounts were regularly maintained. For most of its own
outlets the salaries due to employees (chef, assistant chef, waiters and house-keeping staff) were paid
in half since the past three months.
Hangout Casa went insolvent and CIRP was initiated. Ms. Naziya Khatoon was appointed as interim
resolution professional and later as resolution professional. Ms. Naziya while forming committee of
creditor was not sure about inclusion and exclusion of certain creditors who own both operational and
financial debt.
Rim Jim Limited a cash rich outlet chain of Ice-cream Parlors is currently looking for expansion of their
business and diversification thereof. Board of Rim Jim, decided to submit a resolution plan and being
resolution applicant it submitted a resolution plan along with an affidavit stating that he is eligible under
section 29A of the IBC, to the resolution plan prepared on the basis of the information memorandum.
Some resolution plans also received by Resolution Professional.
A meeting of committee of creditor was convened a week later, wherein the selected resolution plans
that confirm the conditions referred to in sub-section (2) to section 30 were to be considered. Rim Jim
Limited is of view that it can through its representative attend such meeting of committee of creditor
and is allowed to vote as well.
Multiple Choice Questions: (10 Marks)
15.1 Regarding the view point of Rim Jim Limited, that it’s representative shall also be allowed to
attend the meeting of the committee of creditors in which the resolution plan of the applicant is
considered. Identify the correct statement in the light of the Insolvency and Bankruptcy Code,
2016:
(a) Rim Jim Limited may attend the meeting of the committee of creditors in which the
resolution plan of the applicant is considered and allowed to vote.
(b) Rim Jim Limited may attend the meeting of the committee of creditors in which the
resolution plan of the applicant is considered, but not allowed to vote.
(c) Rim Jim Limited shall not attend the meeting of the committee of creditors in which the
resolution plan of the applicant is considered.
(d) Rim Jim Limited may attend the meeting of the committee of creditors in which the
resolution plan of the applicant is considered, and vote if allowed by resolution
professional.
15.2 Under IBC there are two types of debt, Operational and Financial. Identify the correct statement
regarding the nature of lease rental arrears:
(a) Lease rental arrear is financial debt in all cases, for the purpose of IBC, 2016.
(b) Lease rental arrear is financial debt only if lease period is more than 3 years, for the
purpose of IBC, 2016.
(c) Lease rental arrear is operational debt in all cases, for the purpose of IBC, 2016.
(d) Lease rental arrear can be operational or financial debt as per mutual understanding
between lessor and lessee, for the purpose of IBC, 2016.
15.3 It is specified in the fact of case scenario that the suppliers of food, beverages and utilities were
unpaid for supplies provided in the previous 45-60 days, amounting to around Rs. 9,50,000.
Largest among such suppliers is Man Mohan Diary to whom Rs. 2,11,390 is due, who gave
notice two week back for payment but no payment was made by Hangout Casa. Can Man
Mohan Diary file an application under section 9 of the Code?
(a) Yes, because amount outstanding or in default is more than Rs.1 lakh.
(b) Yes, because he served the notice and 10 days has been elapsed but no payment has
been made.
(c) No, because amount outstanding or in default is less than Rs. 10 lakh.
(d) No, because amount outstanding or in default is less than Rs. 100 lakh.
15.4 For most of its own-run (Owned and Operated Hangout Casa; other than franchised) outlets
the salaries due to employees (chef, assistant chef, waiters and house-keeping staff) were paid
in half since the past three months. What is nature of outstanding empl oyee’s dues?
(a) These are neither operational debt nor financial debt
(b) These are financial debt in all the case for the purpose of IBC
 (c) These are operational debt in all the case for the purpose of IBC
(d) These are operational debt if is in arrear for less than 3 month and beyond, classified as
financial debt.
15.5 Ms. Naziya Khatoon, Resolution Professional for Hangout Casa, need your advice regarding
constitution of committee of creditors. Advise her regarding correctness of following statements
pertaining to committee of creditors.
i. Committee of creditor shall be constituted by interim resolution professional after
collation of all the claim received against corporate debtor and determination of financial
position.
ii. Committee of creditor shall comprise of all the creditors.
iii. Related party shall not have right to representation at committee of creditors.
iv. Those who own both financial as well operational debt, shall also, included in committee
of creditors; but only to the extent of financial debt owed by Hangout Casa to such
creditors.
(a) Only statement i, ii and iii are correct
(b) Only statement ii, iii and iv are correct
(c) Only statement i, iii and iv are correct
(d) All the statements are correct