Module: General Practice
Q133: Identify the INCORRECT statement regarding the Liquidation Process as per the 2025 amended framework.
✅ Correct Answer: B
Correction: Under the 2025 Amendments, the Committee of Creditors (CoC) is empowered to supervise the liquidation process and can replace the Liquidator with a 66% vote.
Shift: Previously, the Liquidator was a quasi-judicial authority independent of the CoC.
The amendment shifted this to a "Creditor-Driven Liquidation" model.
Section 53: Options C and D are correct.
Workmen's dues and Secured Creditors share the 2nd position.
Government dues are 5th, subordinate to Unsecured Financial Creditors.
Shift: Previously, the Liquidator was a quasi-judicial authority independent of the CoC.
The amendment shifted this to a "Creditor-Driven Liquidation" model.
Section 53: Options C and D are correct.
Workmen's dues and Secured Creditors share the 2nd position.
Government dues are 5th, subordinate to Unsecured Financial Creditors.