How to Solve Limited Insolvency Examination Case Studies
70 marks ride on reading a narrative right. A method for doing it under time.
Case studies carry 70 of the 100 marks in the Limited Insolvency Examination. IBBI's model paper sets each one out the same way: a narrative of a company, its creditors and a run of events, followed by a block of two-mark questions that all depend on those facts. A wrong answer costs 25% of the question's marks, so a misread date costs you twice.
The law in these questions is rarely obscure. What separates passing scores is method: knowing which facts matter before you read them, and applying the rule as it stood on the exam's law cut-off rather than as it stands today.
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The Six Case Studies
From IBBI's syllabus dated 4 February 2025.
CIRP and liquidation (first)
Questions
10
Marks
20
CIRP and liquidation (second)
Questions
10
Marks
20
Pre-packaged insolvency resolution process
Questions
4
Marks
8
Individual insolvency resolution and bankruptcy
Questions
4
Marks
8
Business and general laws
Questions
4
Marks
8
Business and professional ethics
Questions
3
Marks
6
| Case study on | Questions | Marks |
|---|---|---|
| CIRP and liquidation (first) | 10 | 20 |
| CIRP and liquidation (second) | 10 | 20 |
| Pre-packaged insolvency resolution process | 4 | 8 |
| Individual insolvency resolution and bankruptcy | 4 | 8 |
| Business and general laws | 4 | 8 |
| Business and professional ethics | 3 | 6 |
A Reading Method That Works Under Time
- 1
1. Read the questions first
Skim every question in the set before the narrative. You then read the facts looking for the five or six things the questions need, not trying to remember everything.
- 2
2. Fix the anchor date
Most CIRP answers count from the insolvency commencement date. Note it, then note each later event as a day count from it.
- 3
3. Classify every creditor
Financial or operational, secured or unsecured, related party or not. Voting rights, minimum payments and section 29A all follow from this.
- 4
4. Note every percentage
Write down each creditor's voting share and every vote recorded. Thresholds decide many answers.
- 5
5. Name the actor
For each step in the facts, ask who had the power: the IRP, the RP, the CoC, the NCLT or IBBI. Many wrong options give the right power to the wrong body.
- 6
6. Answer in order
Later questions often assume earlier facts are settled. If you skip, mark the question and come back with the narrative still fresh.
Worked Example: One Fact Pattern, Three Rules
Facts: a CIRP against a textile company is admitted on a bank's section 7 application. The CoC has three banks (40%, 35% and 25% voting share). Months later the promoter settles with the applicant bank and seeks withdrawal. The 40% and 35% banks vote yes; the 25% bank votes no. Separately, a bidder whose promoter controls another company, classified as an NPA more than a year ago, submits a plan without clearing that company's overdue amounts.
Withdrawal: at the exam's cut-off, section 12A needed approval of 90% of the CoC's voting share. 75% is not enough, so withdrawal fails. Bidder: section 29A(c) makes the bidder ineligible, and ArcelorMittal holds that the ineligibility is removed only if the overdue amounts are paid before the plan is submitted, not as part of the plan. Replacing the RP, if the banks wanted to: a 66% vote, so the 40% and 35% banks together could do it.
Notice the pattern: one narrative, three different thresholds. Candidates who learn numbers in isolation pick 66% for the withdrawal question because it is the most familiar CoC figure.
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Answer on the Cut-Off Law
IBBI tests every law as in force on 4 February 2025. The IBC (Amendment) Act, 2026, in force from 26 May 2026, rewrote section 12A: the resolution professional now applies, and withdrawal is barred before the CoC is constituted and after the first invitation for resolution plans. In the exam, apply the earlier rule.
How the Limited Insolvency Examination Tests This
IBBI's model paper shows two recurring shapes. In CIRP sets, a narrative of an IRP's first days produces questions on disclosures, timelines and who bears a loss. In the ethics set, a narrative about an insolvency professional's relationships produces questions where the best answer is grounded in the Code of Conduct's independence principle, not a narrower technical rule.
The commonest trap is the option that is true in general but wrong on these facts. Before choosing, check that the option fits the dates, the percentages and the actor in the narrative.
FAQs
How many case studies are in the IBBI Limited Insolvency Examination?expand_more
Six, carrying 70 of 100 marks through 35 two-mark questions: two on CIRP and liquidation (10 questions each), and one each on pre-pack, individual insolvency, business and general laws (4 questions each) and ethics (3 questions).
Should I read the case study or the questions first?expand_more
Reading the questions first is usually faster: you then know which dates, amounts and votes to note while reading the narrative.
Is there negative marking on case-study questions?expand_more
Yes. A wrong answer loses 25% of the question's marks, which is half a mark on a two-mark case-study question. An unanswered question scores zero.
Which law applies in LIE case studies, current or old?expand_more
The law as in force on 4 February 2025. Later amendments, including the IBC (Amendment) Act, 2026, are ignored in the current series.
Next steps
- Preparationarrow_forward
- Exam Patternarrow_forward
- Ethics case studiesarrow_forward
- Landmark judgmentsarrow_forward
65 questions, case-study format, negative marking.