PGIP - MA/LLM Degree in Insolvency: Test Pattern and Syllabus
The PGIP MA/LLM in Insolvency test focuses on the Insolvency and Bankruptcy Code, 2016, and its interaction with company law, contract, and financial regulation. Expect the corporate insolvency resolution process, the roles of the interim resolution professional and committee of creditors, moratorium, avoidance transactions, liquidation, personal guarantors, and cross-border insolvency issues.
Core rules and concepts
- Trigger: a financial creditor files under Section 7; an operational creditor under Section 9 after a demand notice; the default threshold must be met.
- CIRP: admission triggers a moratorium, management shifts to the IRP/RP, and the CoC considers resolution plans.
- Avoidance: preferential transactions, undervalued transactions, and extortionate credit transactions can be avoided.
- Liquidation: follows failure of CIRP; the waterfall in Section 53 determines distribution.
Worked example
An operational creditor supplies goods worth ₹1.5 crore, is unpaid, and files under Section 9. The corporate debtor replies that the goods were defective and a quality dispute is pending. What should the adjudicating authority do? Reasoning: The operational creditor must establish an undisputed operational debt and default. A pre-existing dispute about quality can be a ground to reject the application. The answer is not automatic admission; the authority must examine whether the dispute is genuine and pre-existing, not manufactured after the notice.
Traps that cost marks
Confusing Sections 7, 9, and 10; treating the moratorium as covering criminal proceedings; ignoring CoC voting thresholds; assuming liquidation is automatic; overlooking the “pre-existing dispute” defence.