Q. With reference to Insolvency and Bankruptcy Code 2016 (IBC), consider the following statements:
1.It is a law which creates a consolidated framework that governs insolvency and bankruptcy proceedings only for companies and partnership firms.
2.It repealed all previous legislation and established a standardised framework for resolving insolvency and bankruptcy cases.
3.It establishes faster insolvency procedures to assist creditors in recovering debts and avoiding bad loans.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Statement 1 is incorrect. IBC created a consolidated framework that governs insolvency and bankruptcy proceedings for companies, partnership firms, and individuals.

Statement 2 and 3 are correct. IBC repealed all previous legislation and established a standardised framework for resolving insolvency and bankruptcy cases. It establishes faster insolvency procedures to assist creditors in recovering debts and avoiding bad loans.

Source: The Times of India