{"id":23670,"date":"2022-11-21T18:59:30","date_gmt":"2022-11-21T13:29:30","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=23670"},"modified":"2024-06-08T14:53:12","modified_gmt":"2024-06-08T09:23:12","slug":"ibc-code-on-resolution-plan","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/","title":{"rendered":"IBC Provisions of the Code &#038; Regulations on Resolution Plan"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ee486f0b97f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ee486f0b97f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#IBC_provisions_of_the_Code_Regulations_on_Resolution_Plan\" title=\"IBC provisions of the Code &amp; Regulations on Resolution Plan \">IBC provisions of the Code &amp; Regulations on Resolution Plan <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Provisions_compliances_under_IBC_Code_Provision_on_Resolution_Plan\" title=\"Provisions compliances under IBC Code Provision on Resolution Plan\">Provisions compliances under IBC Code Provision on Resolution Plan<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Applicability_of_moratorium_contains_under_the_Proviso_to_Section_144_of_the_IBC_Code\" title=\"Applicability of moratorium contains under the Proviso to Section 14(4) of the IBC Code: \">Applicability of moratorium contains under the Proviso to Section 14(4) of the IBC Code: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Definition_of_Resolution_Plan_provided_Us_526_of_the_IBC_Code\" title=\"Definition of Resolution Plan provided U\/s 5(26) of the IBC Code\">Definition of Resolution Plan provided U\/s 5(26) of the IBC Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Duties_of_Resolution_Professional_contains_under_the_Section_252h_of_the_IBC_Code\" title=\"Duties of Resolution Professional contains under the Section 25(2)(h) of the IBC Code\">Duties of Resolution Professional contains under the Section 25(2)(h) of the IBC Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Preparation_of_Information_Memorandum_contains_under_the_Explanation_to_Section_292_c_of_the_IBC_Code\" title=\"Preparation of \u00a0Information Memorandum contains under the Explanation to Section 29(2)( c) of the IBC Code\">Preparation of \u00a0Information Memorandum contains under the Explanation to Section 29(2)( c) of the IBC Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Ineligibility_to_be_a_Resolution_Applicant_contains_under_the_Section_29A_of_the_IBC_Code\" title=\"Ineligibility to be a Resolution Applicant contains under the Section 29A of the IBC Code\">Ineligibility to be a Resolution Applicant contains under the Section 29A of the IBC Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Ineligibility_to_be_a_Resolution_Applicant_contains_under_the_Proviso_to_Section_29AC_of_the_Insolvency_and_Bankruptcy_Code_2016\" title=\"Ineligibility to be a Resolution Applicant contains under the Proviso to Section 29A(C) of the Insolvency and Bankruptcy Code, 2016\">Ineligibility to be a Resolution Applicant contains under the Proviso to Section 29A(C) of the Insolvency and Bankruptcy Code, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Submission_of_resolution_plan_contains_under_the_Section_301_of_the_Insolvency_and_Bankruptcy_Code_2016\" title=\"Submission of resolution plan contains under the Section 30(1) of the Insolvency and Bankruptcy Code, 2016 \">Submission of resolution plan contains under the Section 30(1) of the Insolvency and Bankruptcy Code, 2016 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Contents_of_a_Resolution_Plan_contains_under_the_Section_302_of_the_IBC_Code\" title=\"Contents of a Resolution Plan contains under the Section 30(2) of the IBC Code \n\">Contents of a Resolution Plan contains under the Section 30(2) of the IBC Code \n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Approval_of_the_Plan_contains_under_the_Section_303_and_304_of_the_IBC_Code\" title=\"Approval of the\u00a0\u00a0 Plan contains under the Section 30(3) and 30(4) of \u00a0\u00a0the IBC Code\">Approval of the\u00a0\u00a0 Plan contains under the Section 30(3) and 30(4) of \u00a0\u00a0the IBC Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Meeting_of_Approval_contains_under_the_Section_305_of_the_Insolvency_and_Bankruptcy_Code_2016\" title=\"Meeting of Approval contains under the Section 30(5) of the Insolvency and Bankruptcy Code, 2016 \">Meeting of Approval contains under the Section 30(5) of the Insolvency and Bankruptcy Code, 2016 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Approval_of_the_plan_contains_under_the_Section_31_of_the_IBC_Code\" title=\"Approval of the plan contains under the Section 31 of the IBC Code \">Approval of the plan contains under the Section 31 of the IBC Code <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Combination_in_Resolution_Plan_contains_under_the_Proviso_to_Section_314_of_the_IBC_Code\" title=\"Combination in Resolution Plan contains under the Proviso to Section 31(4) of the IBC Code \">Combination in Resolution Plan contains under the Proviso to Section 31(4) of the IBC Code <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Appeal_contains_under_the_Section_32_of_the_Code\" title=\"Appeal contains under the Section 32 of the Code\">Appeal contains under the Section 32 of the Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Grounds_of_appeal_against_the_Resolution_Plan_contains_under_the_Section_613_of_the_The_Insolvency_and_Bankruptcy_Code_2016\" title=\"Grounds of appeal against the Resolution Plan contains under the Section 61(3) of the The Insolvency and Bankruptcy Code, 2016 \u00a0\">Grounds of appeal against the Resolution Plan contains under the Section 61(3) of the The Insolvency and Bankruptcy Code, 2016 \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Criminal_proceedings_against_corporate_debtor_contains_under_the_Section_32A2_of_the_IBC_Code\" title=\"Criminal proceedings against corporate debtor contains under the Section 32A(2) of the IBC Code\">Criminal proceedings against corporate debtor contains under the Section 32A(2) of the IBC Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Liquidation_contains_under_the_Section_33_of_the_IBC_Code\" title=\"Liquidation contains under the Section 33 of the IBC Code \">Liquidation contains under the Section 33 of the IBC Code <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Punishment_for_contravention_if_of_resolution_plan_contains_under_the_Section_743_of_the_IBC_Code\" title=\"Punishment for contravention if of resolution plan contains under the Section 74(3) of the IBC Code\">Punishment for contravention if of resolution plan contains under the Section 74(3) of the IBC Code<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#IBC_Regulations_on_Resolution_Plan\" title=\"IBC Regulations on Resolution Plan\">IBC Regulations on Resolution Plan<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Invitation_for_Expression_of_Interest_contains_under_the_Reg_36A_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\" title=\"Invitation for Expression of Interest contains under the Reg. 36A of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016\">Invitation for Expression of Interest contains under the Reg. 36A of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Request_for_Resolution_Plans_contains_under_the_Reg_36B_of_the_IBBI_corporate_insolvency_resolution_process_Regulations_2016\" title=\"Request for Resolution Plans contains under the Reg. 36B of the IBBI (corporate insolvency resolution process) Regulations, 2016\">Request for Resolution Plans contains under the Reg. 36B of the IBBI (corporate insolvency resolution process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Mandatory_Contents_of_Resolution_Plan_contains_under_the_Reg_38_of_the_IBBICorporate_Insolvency_Resolution_Process_Regulations_2016\" title=\"Mandatory Contents of Resolution Plan contains under the Reg. 38 of the IBBI(Corporate Insolvency Resolution Process) Regulations, 2016\">Mandatory Contents of Resolution Plan contains under the Reg. 38 of the IBBI(Corporate Insolvency Resolution Process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Approval_of_Resolution_Plan_contains_under_the_Reg_39_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\" title=\"Approval of Resolution Plan contains under the Reg. 39 of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016\">Approval of Resolution Plan contains under the Reg. 39 of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Approval_of_Resolution_Plan_by_Committee_of_Creditors_contains_under_the_Reg_393_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\" title=\"Approval of Resolution Plan by Committee of Creditors contains under the Reg. 39(3) of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016\">Approval of Resolution Plan by Committee of Creditors contains under the Reg. 39(3) of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Meeting_Liquidation_Cost_contains_under_the_Reg_39B_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\" title=\"Meeting Liquidation Cost contains under the Reg. 39B of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016\">Meeting Liquidation Cost contains under the Reg. 39B of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Assessment_of_sale_as_a_going_concern_contains_under_the_Reg_39C_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\" title=\"Assessment of sale as a going concern contains under the Reg. 39C of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016\">Assessment of sale as a going concern contains under the Reg. 39C of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/carajput.com\/blog\/ibc-code-on-resolution-plan\/#Intersection_between_Section_12A_29A_of_the_IBC\" title=\"Intersection between Section 12A &amp; 29A of the IBC\">Intersection between Section 12A &amp; 29A of the IBC<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"IBC_provisions_of_the_Code_Regulations_on_Resolution_Plan\"><\/span><span style=\"color: #000080;\"><strong><u>IBC provisions of the Code &amp; Regulations on Resolution Plan <\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the Blog have brief details about the provisions of the Insolvency and Bankruptcy Code, 2016 &amp; IBC Regulations made thereunder, in relation to the provision of Resolution Plans, its preparation, basic points to be contents along with approval<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Provisions_compliances_under_IBC_Code_Provision_on_Resolution_Plan\"><\/span><span style=\"color: #000080;\"><strong><u>Provisions compliances under IBC Code Provision on Resolution Plan<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Applicability_of_moratorium_contains_under_the_Proviso_to_Section_144_of_the_IBC_Code\"><\/span><strong><span style=\"color: #000080;\">Applicability of moratorium contains under the Proviso to Section 14(4) of the IBC Code:<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If at any time during the Corporate Insolvency Resolution Process period, if the Adjudicating Authorities approves the resolution plan under sub-section (1) of section 31, the moratorium shall cease to have effect from the date of such approval.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Definition_of_Resolution_Plan_provided_Us_526_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Definition of Resolution Plan provided U\/s 5(26) of the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It means a plan proposed by bidder or resolution applicant for insolvency resolution of the corporate debtor as a going A resolution plan may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Duties_of_Resolution_Professional_contains_under_the_Section_252h_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Duties of Resolution Professional contains under the Section 25(2)(h) of the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is the duty of a Resolution Professional to invite prospective resolution applicants, who fulfill such criteria as may be laid down by him with the approval of committee of creditors, having regard to the complexity and scale of operations of the business of the corporate debtor and such other conditions as may be specified by the Board, to File a resolution<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Preparation_of_Information_Memorandum_contains_under_the_Explanation_to_Section_292_c_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Preparation of \u00a0Information Memorandum contains under the Explanation to Section 29(2)( c) of the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Relevant information in Information Memorandum means information to be given to bidder resolution applicants to make a resolution plan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ineligibility_to_be_a_Resolution_Applicant_contains_under_the_Section_29A_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Ineligibility to be a Resolution Applicant contains under the Section 29A of the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A person shall not be eligible to submit a resolution plan if any conditions U\/s 29A are<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ineligibility_to_be_a_Resolution_Applicant_contains_under_the_Proviso_to_Section_29AC_of_the_Insolvency_and_Bankruptcy_Code_2016\"><\/span><span style=\"color: #000080;\"><strong>Ineligibility to be a Resolution Applicant contains under the Proviso to Section 29A(C) of the Insolvency and Bankruptcy Code, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A person can be eligible to submit resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to nonperforming asset accounts before submission of resolution<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Submission_of_resolution_plan_contains_under_the_Section_301_of_the_Insolvency_and_Bankruptcy_Code_2016\"><\/span><span style=\"color: #000080;\"><strong>Submission of resolution plan contains under the Section 30(1) of the Insolvency and Bankruptcy Code, 2016 <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A resolution applicant (bidder) may submit a resolution plan [along with an affidavit stating that he is eligible U\/s 29A] to the resolution professional prepared on the basis of the information<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Contents_of_a_Resolution_Plan_contains_under_the_Section_302_of_the_IBC_Code\"><\/span><strong><span style=\"color: #000080;\">Contents of a Resolution Plan contains under the Section 30(2) of the IBC Code<\/span><br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Insolvency professional shall examine each resolution plan received by him to confirm that each resolution plan<\/p>\n<ul>\n<li>provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the payment of other debts of the corporate debtor;<\/li>\n<li>provides for the payment of debts of operational creditors in such manner as may be specified by the Board<\/li>\n<li>provides for the management of the affairs of the Corporate debtor after approval of the resolution plan;<\/li>\n<li>The implementation and supervision of the resolution plan;<\/li>\n<li>does not contravene any of the provisions of the law for the time being in force<\/li>\n<li>confirms to such other requirements as may be specified by the Board.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Approval_of_the_Plan_contains_under_the_Section_303_and_304_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Approval of the\u00a0\u00a0 Plan contains under the Section 30(3) and 30(4) of \u00a0\u00a0the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Resolution professional shall present to the committee of creditors for its approval such resolution plans which confirm the conditions<\/p>\n<p>Committee of creditors may approve a resolution plan by a vote of not less than 66%. of voting share of the financial creditors, after considering its feasibility and viability, the manner of distribution proposed, which may take into account the order of priority amongst creditors, including the priority and value of the security interest of a secured<\/p>\n<p>Note: The plan should not be submitted by anyone ineligible U\/s 29A.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Meeting_of_Approval_contains_under_the_Section_305_of_the_Insolvency_and_Bankruptcy_Code_2016\"><\/span><strong><span style=\"color: #000080;\">Meeting of Approval contains under the Section 30(5) of the Insolvency and Bankruptcy Code, 2016<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Resolution applicant may attend the meeting of the committee of creditors in which the resolution plan of the applicant is The resolution applicant shall not have a right to vote at the meeting of the committee of creditors unless such resolution applicant is also a financial creditor.<\/p>\n<p>Resolution-professional shall submit the resolution plan as approved by the committee of creditors to the Adjudicating<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Approval_of_the_plan_contains_under_the_Section_31_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Approval of the plan contains under the Section 31 of the IBC Code <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If the Adjudicating Authorities is satisfied that the resolution plan as approved by the committee of creditors as per terms of Section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, including the Central Govt, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed, guarantors and other stakeholders involved in the resolution<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Combination_in_Resolution_Plan_contains_under_the_Proviso_to_Section_314_of_the_IBC_Code\"><\/span><strong><span style=\"color: #000080;\">Combination in Resolution Plan contains under the Proviso to Section 31(4) of the IBC Code<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where the resolution plan contains a provision for combination, as referred to in section 5 of the Competition Act, 2002, the resolution applicant shall obtain the approval of the Competition Commission of India under that Act prior to the approval of such resolution plan by the committee of creditors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Appeal_contains_under_the_Section_32_of_the_Code\"><\/span><span style=\"color: #000080;\"><strong>Appeal contains under the Section 32 of the Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Any appeal from an order approving the resolution plan shall be in the manner and on the grounds laid down in Section 61(3) the Insolvency and Bankruptcy Code.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Grounds_of_appeal_against_the_Resolution_Plan_contains_under_the_Section_613_of_the_The_Insolvency_and_Bankruptcy_Code_2016\"><\/span><span style=\"color: #000080;\"><strong>Grounds of appeal against the Resolution Plan contains under the Section 61(3) of the The Insolvency and Bankruptcy Code, 2016 \u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>There has been material irregularity in exercise of the powers by the resolution professional during the corporate insolvency resolution<\/li>\n<li>Approved resolution plan is in contravention of the provisions of any law for the time being in force.<\/li>\n<li>Debts owed to operational creditors of the corporate debtor have not been provided for in the resolution plan in the manner specified by the<\/li>\n<li>Insolvency resolution process costs have not been provided for repayment in priority to all other debts; or<\/li>\n<li>Resolution plan does not comply with any other criteria specified by the<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Criminal_proceedings_against_corporate_debtor_contains_under_the_Section_32A2_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Criminal proceedings against corporate debtor contains under the Section 32A(2) of the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No action shall be taken against the property of the corporate debtor in relation to an offence committed prior to the commencement of the corporate insolvency resolution process of the corporate debtor, where such property is covered under a resolution<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Liquidation_contains_under_the_Section_33_of_the_IBC_Code\"><\/span><strong><span style=\"color: #000080;\">Liquidation contains under the Section 33 of the IBC Code<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Liquidation proceedings will be initiated if resolution plan fails to get<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Punishment_for_contravention_if_of_resolution_plan_contains_under_the_Section_743_of_the_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong>Punishment for contravention if of resolution plan contains under the Section 74(3) of the IBC Code<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where the corporate debtor, any of its officers or creditors or any person on whom the approved resolution plan is binding U\/s 31 the Insolvency and Bankruptcy Code, knowingly and willfully contravenes any of the terms of such resolution plan or abets such contravention, such corporate debtor, officer, creditor or person shall be punishable with imprisonment of not less than one year, but may extend to five years, or with fine which shall not be less than one lakh rupees, but may extend to one crore rupees, or with both.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"IBC_Regulations_on_Resolution_Plan\"><\/span><span style=\"color: #000080;\"><strong><u>IBC Regulations on Resolution Plan<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Invitation_for_Expression_of_Interest_contains_under_the_Reg_36A_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Invitation for Expression of Interest contains under the Reg. 36A of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The resolution professional shall publish IBC Form G for interested and eligible prospective resolution applicants to File resolution<\/p>\n<p><span style=\"color: #000080;\"><strong>Resolution Plan contains under the Reg. 37 of the IBBI(Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><\/p>\n<p>A resolution plan shall provide for the measures, as may be necessary, for insolvency resolution of the corporate debtor for maximization of value of its<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Request_for_Resolution_Plans_contains_under_the_Reg_36B_of_the_IBBI_corporate_insolvency_resolution_process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Request for Resolution Plans contains under the Reg. 36B of the IBBI (corporate insolvency resolution process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Resolution professional shall issue the information memorandum, evaluation matrix and a request for resolution plans, within five days of the date of issue of the provisional list of prospective resolution<\/p>\n<p>The request for resolution plans shall detail each step in the process, and the manner and purposes of interaction between the resolution professional and the prospective resolution applicant, along with corresponding<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mandatory_Contents_of_Resolution_Plan_contains_under_the_Reg_38_of_the_IBBICorporate_Insolvency_Resolution_Process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Mandatory Contents of Resolution Plan contains under the Reg. 38 of the IBBI(Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The contents that are to be included in the resolution plan including but not Ltd. to a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor, the entire payment plan and its implementation<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Approval_of_Resolution_Plan_contains_under_the_Reg_39_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Approval of Resolution Plan contains under the Reg. 39 of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A prospective bidder or resolution applicant in the final list may file resolution plan or plans prepared in accordance with the Insolvency and Bankruptcy Code, 2016 and these regulations to the resolution professional electronically within the time given in the request for resolution plans under regulation 36B.<\/li>\n<li>The resolution professional shall endeavour to file the resolution plan approved by the committee to the Adjudicating Authority at least fifteen days before the maximum period for completion of corporate insolvency resolution process u\/s 12, along with a compliance certificate (IBBI &#8211; Form H)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Approval_of_Resolution_Plan_by_Committee_of_Creditors_contains_under_the_Reg_393_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Approval of Resolution Plan by Committee of Creditors contains under the Reg. 39(3) of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The committee shall evaluate the resolution plans received under regulation 39(1) strictly as per the evaluation matrix to identify the best resolution plan and may approve it with such modifications as it deems<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Meeting_Liquidation_Cost_contains_under_the_Reg_39B_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Meeting Liquidation Cost contains under the Reg. 39B of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>While approving a resolution plan, the committee may make a best estimate of the amount required to meet liquidation costs, in consultation with the Insolvency<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Assessment_of_sale_as_a_going_concern_contains_under_the_Reg_39C_of_the_IBBI_Corporate_Insolvency_Resolution_Process_Regulations_2016\"><\/span><span style=\"color: #000080;\"><strong>Assessment of sale as a going concern contains under the Reg. 39C of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>While approving \u00a0a\u00a0 \u00a0resolution\u00a0 \u00a0plan, the\u00a0 \u00a0committee\u00a0 \u00a0may recommend that the liquidator may first explore sale of the corporate debtor as a going<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Intersection_between_Section_12A_29A_of_the_IBC\"><\/span><span style=\"color: #000080;\"><strong>Intersection between Section 12A &amp; 29A of the IBC<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The intersection between Section 12A and Section 29A of the Insolvency and Bankruptcy Code (IBC) raises an important question: can resolution applicants who are ineligible under Section 29A apply for withdrawal under Section 12A?<\/li>\n<li>This issue was addressed by the National Company Law Appellate Tribunal. in the case of Shweta Vishwanath Shirke v. CoC (2019) National Company Law Appellate Tribunal. Referring to the Honorable Supreme Court&#8217;s judgment in Swiss Ribbons (supra),<\/li>\n<li>NCLAT held that promoters or shareholders of the CD are eligible to propose a settlement plan, &amp; Section 29A\u2019s ineligibility cannot be a bar for considering applications u\/s 12A of Insolvency and Bankruptcy Code.<\/li>\n<li>The rationale behind this is that both provisions serve different objectives within the Insolvency and Bankruptcy Code framework. Section 12A provides a mechanism for withdrawal from the insolvency process, aiming to facilitate a mutually agreeable resolution without proceeding to formal insolvency.<\/li>\n<li>On the other hand, Section 29A sets out criteria to bar certain individuals or entities from becoming resolution applicants to ensure that those who have contributed to the company&#8217;s financial distress do not regain control.<\/li>\n<li>Therefore, the NCLAT concluded that the ineligibility u\/s 29A does not preclude a resolution applicant from seeking withdrawal under Section 12A of the IBC. This interpretation ensures that the objectives of both provisions are respected while allowing stakeholders to pursue the most effective means of resolution<\/li>\n<\/ul>\n<p><strong>You may also know more about\u00a029A certificate\u00a0<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/learn\/section-29a-certification-services-under-ibc.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/section-29a-certification-services-under-ibc.htmlA\">29A Cerificate under the IBC law<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/section-29a-of-ibc-2016\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/section-29a-of-ibc-2016\/\">Related party under section 29a of ibc Code<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/publications\/ibc-laws-critical-analysis-of-section-29a-of-the-code.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/ibc-laws-critical-analysis-of-section-29a-of-the-code.pdf\">Section 29A of IBC act<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/overviews-of-principles-of-avoidable-preferential-transactions-ibc-2016\/\">Overviews of Principles of Avoidable Preferential Transactions IBC-2016<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/services\/how-does-the-role-of-resolution-professional-help.php\">How does the Role of Resolution Professional help under IBC<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/quick-review-on-insolvency-and-bankruptcy-code.html\">quick overview of IBC<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>IBC provisions of the Code &amp; Regulations on Resolution Plan Under the Blog have brief details about the provisions of the Insolvency and Bankruptcy Code, 2016 &amp; IBC Regulations made thereunder, in relation to the provision of Resolution Plans, its preparation, basic points to be contents along with approval Provisions compliances under IBC Code Provision &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8788],"tags":[10152],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23670"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=23670"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23670\/revisions"}],"predecessor-version":[{"id":23672,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23670\/revisions\/23672"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=23670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=23670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=23670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}