•clause ( a), in such manner as may be specified;
(c)maintain an updated list of claims, in such manner as may be
•specified;
(d)monitor management of the affairs of the corporate debtor;
(e)inform the committee of creditors in the event of breach of any of
•the obligations of the Board of Directors or partners, as the case may be, of
•the corporate debtor, under the provisions of this Chapter and the rules and
•regulations made thereunder;
(f)constitute the committee of creditors and convene and attend all its
•meetings;
(g)prepare the information memorandum on the basis of the
•preliminary information memorandum submitted under section 54G and any
•other relevant information, in such form and manner as may be specified;
(h)file applications for avoidance of transactions under Chapter III or
•fraudulent or wrongful trading under Chapter VI, if any; and
(i)such other duties as may be specified.
(3)The resolution professional shall exercise the following powers, namely:—
(a)access all books of account, records and information available
•with the corporate debtor;
(b)access the electronic records of the corporate debtor from an
•information utility having financial information of the corporate debtor;
(c)access the books of account, records and other relevant documents
•of the corporate debtor available with Government authorities, statutory
•auditors, accountants and such other persons as may be specified;
(d)attend meetings of members, Board of Directors and committee of
•directors, or partners, as the case may be, of the corporate debtor;
(e)appoint accountants, legal or other professionals in such manner
•as may be specified;
(f)collect all information relating to the assets, finances and operations
•of the corporate debtor for determining the financial position of the corporate
•debtor and the existence of any transactions that may be within the scope
•of provisions relating to avoidance of transactions under Chapter III or
•fraudulent or wrongful trading under Chapter VI, including information
•relating to—
(i)business operations for the previous two years from the date
•of pre-packaged insolvency commencement date;
•Duties and
•powers of
•resolution
•professional
•during pre-
•packaged
•insolvency
•resolution
process.
•45
•5
•10
•15
•20
•25
•30
•35
•40
•8
•(ii) financial and operational payments for the previous two years
•from the date of pre-packaged insolvency commencement date;
•(iii) list of assets and liabilities as on the initiation date; and
•(iv) such other matters as may be specified;
(g)take such other actions in such manner as may be specified.
(4)From the date of appointment of the resolution professional, the financial
•institutions maintaining accounts of the corporate debtor shall furnish all
•information relating to the corporate debtor available with them to the resolution
•professional, as and when required by him.
(5)The personnel of the corporate debtor, its promoters and any other
•person associated with the management of the corporate debtor shall extend all
•assistance and cooperation to the resolution professional as may be required by
•him to perform his duties and exercise his powers, and for such purposes, the
•provisions of sub-sections ( 2) and (3) of section 19 shall, mutatis mutandis apply,
•in relation to the proceedings under this Chapter.
(6)The fees of the resolution professional and any expenses incurred by
•him for conducting the pre-packaged insolvency resolution process shall be
•determined in such manner as may be specified:
•Provided that the committee of creditors may impose limits and conditions
•on such fees and expenses:
•Provided further that the fees and expenses for the period prior to the
•constitution of the committee of creditors shall be subject to ratification by it.
(7)The fees and expenses referred to in sub-section ( 6) shall be borne in
•such manner as may be specified.
54G.(1) The corporate debtor shall, within two days of the pre-packaged
•insolvency commencement date, submit to the resolution professional the
•following information, updated as on that date, in such form and manner as may
•be specified, namely:—
(a)a list of claims, along with details of the respective creditors, their
•security interests and guarantees, if any; and
(b)a preliminary information memorandum containing information
•relevant for formulating a resolution plan.
(2)Where any person has sustained any loss or damage as a consequence
•of the omission of any material information or inclusion of any misleading
•information in the list of claims or the preliminary information memorandum
•submitted by the corporate debtor, every person who—
(a)is a promoter or director or partner of the corporate debtor, as the
•case may be, at the time of submission of the list of claims or the preliminary
•information memorandum by the corporate debtor; or
(b)has authorised the submission of the list of claims or the preliminary
•information memorandum by the corporate debtor,
•shall, without prejudice to section 77A, be liable to pay compensation to every
•person who has sustained such loss or damage.
(3)No person shall be liable under sub-section ( 2), if the list of claims or the
•preliminary information memorandum was submitted by the corporate debtor
•without his knowledge or consent.
•List of claims
•and
•preliminary
•information
memorandum.
•5
•10
•15
•20
•25
•30
•35
•40
•45
•9
(4)Subject to section 54E, any person, who sustained any loss or damage
•as a consequence of omission of material information or inclusion of any misleading
•information in the list of claims or the preliminary information memorandum shall
•be entitled to move a court having jurisdiction for seeking compensation for such
•loss or damage.
54H.During the pre-packaged insolvency resolution process period,—
(a)the management of the affairs of the corporate debtor shall continue
•to vest in the Board of Directors or the partners, as the case may be, of the
•corporate debtor, subject to such conditions as may be specified;
(b)the Board of Directors or the partners, as the case may be, of the
•corporate debtor, shall make every endeavour to protect and preserve the
•value of the property of the corporate debtor, and manage its operations as
•a going concern; and
(c)the promoters, members, personnel and partners, as the case may
•be, of the corporate debtor, shall exercise and discharge their contractual or
•statutory rights and obligations in relation to the corporate debtor, subject
•to the provisions of this Chapter and such other conditions and restrictions
•as may be prescribed.
•54-I. ( 1) The resolution professional shall, within seven days of the
•pre-packaged insolvency commencement date, constitute a committee of creditors,
•based on the list of claims confirmed under clause ( a) of
•sub-section ( 2) of section 54F:
•Provided that the composition of the committee of creditors shall be altered
•on the basis of the updated list of claims, in such manner as may be specified, and
•any such alteration shall not affect the validity of any past decision of the
•committee of creditors.
(2)The first meeting of the committee of creditors shall be held within seven
•days of the constitution of the committee of creditors.
(3)The provisions of section 21, except sub-section (1) thereof, shall, mutatis
•mutandis apply, in relation to the committee of creditors under this Chapter:
•Provided that for the purposes of this sub-section, references to "resolution
•professional" under sub-sections ( 9) and (10) of section 21, shall be construed as
•references to "corporate debtor or the resolution professional".
54J.( 1) Where the committee of creditors, at any time during the
•pre-packaged insolvency resolution process period, by a vote of not less than
•sixty-six per cent. of the voting shares, resolves to vest the management of the
•corporate debtor with the resolution professional, the resolution professional
•shall make an application for this purpose to the Adjudicating Authority, in such
•form and manner as may be specified.
(2)On an application made under sub-section ( 1), if the Adjudicating
•Authority is of the opinion that during the pre-packaged insolvency resolution
•process—
(a)the affairs of the corporate debtor have been conducted in a
•fraudulent manner; or
(b)there has been gross mismanagement of the affairs of the corporate
•debtor,
•it shall pass an order vesting the management of the corporate debtor with the
•resolution professional.
•Management
•of affairs of
•corporate
debtor.
•Committee of
creditors.
•Vesting
•management
•of corporate
•debtor with
•resolution
professional.
•45
•5
•10
•15
•20
•25
•30
•35
•40
•10
(3)Notwithstanding anything to the contrary contained in this Chapter, the
•provisions of—
(a)sub-sections ( 2) and ( 2A) of section 14;
(b)section 17;
(c)clauses ( e) to (g) of section 18;
(d)sections 19 and 20;
(e)sub-section ( 1) of section 25;
(f)clauses (a) to (c) and clause (k) of sub-section (2) of section 25; and
(g)section 28,
•shall, mutatis mutan dis apply, to the proceedings under this Chapter, from the
•date of the order under sub-section ( 2), until the pre-packaged insolvency
•resolution process period comes to an end.
54K.(1) The corporate debtor shall submit the base resolution plan, referred
•to in clause ( c) of sub-section ( 4) of section 54A, to the resolution professional
•within two days of the pre-packaged insolvency commencement date, and the
•resolution professional shall present it to the committee of creditors.
(2)The committee of creditors may provide the corporate debtor an
•opportunity to revise the base resolution plan prior to its approval under
•sub-section (4) or invitation of prospective resolution applicants under sub-section
(5), as the case may be.
(3)The resolution plans and the base resolution plan, submitted under this
•section shall conform to the requirements referred to in sub-sections ( 1) and (2) of
