Can A Promoter Submit A Resolution Plan?

What is Section 29a of IBC?

Section 29A was introduced in the Insolvency and Bankruptcy Code 2016 (IBC) in 2017 to prevent certain kinds of persons, painted tainted under the law, from becoming contenders to revive a company undergoing the Corporate Insolvency Resolution Process (CIRP) under the IBC..

What is a resolution plan under IBC?

TABLE 1: COMPLIANCES UNDER IBC. Code Regulations Provisions Scope Explanation Section 5(26) of the Code Definition of Resolution Plan It means a plan proposed by resolution applicant for insolvency resolution of the corporate debtor as a going concern.

The definition stated that a related party means anyone in relation to the individual (defaulter promoter) or their spouse; partner in a partnership firm or trustee in a trust in which the defaulter individual is associated; a private company in which is the individual is a director and holds over 2% share capital …

What is the effect of moratorium?

Borrowers who had opted for the loan moratorium were not required to pay EMIs during that period. During the moratorium period, the interest is not waived off and will continue to accrue on the outstanding amount. Further, individuals have to pay additional interest on the months for which the EMI moratorium was taken.

Can a promoter be a resolution applicant?

The Insolvency and Bankruptcy Code (IBC) 2016 in its preamble identifies itself as a law for reorganisation and resolution of companies. … Under it, promoters or persons who controlled the insolvent company cannot apply as resolution applicant.

Who Cannot be a resolution applicant?

(c) A person shall not be eligible to submit a resolution plan, if such person, or any other person acting jointly or in concert with such person at the time of submission of the resolution plan has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is …

What is the minimum and maximum period of moratorium under IBC 2016?

Under Section 74 of the IBC, officials of the corporate debtor who violate provisions of moratorium can be imprisoned for a minimum of three years, which may be extended up to five years. Such officials will also be fined a minimum of Rs 100,000 but not more than Rs 300,000.

What is a resolution professional?

“Resolution Professional”, means an insolvency professional appointed to conduct the corporate insolvency resolution process and includes an interim-resolution professional; Provisions Relating to appointment of resolution Professional. The committee of creditors in its first meeting may.

Who is adjudicating authority under IBC?

[i] IBC designated National Company Law Tribunal (“NCLT”) as the Adjudicating Authority for corporate persons and Debts Recovery Tribunal (“DRT”) as the Adjudicating Authority for individuals and partnership firms (except in some situations), thereby providing for the insolvency resolution, liquidation and bankruptcy …

What happens if the customer doesn’t wish to avail the moratorium period?

SBI has told customers who have given standing instructions to their banks that if they don’t want to avail the moratorium, no action is required from their end as the monthly EMI will be deducted from their accounts.

Who can be a resolution applicant under IBC?

Resolution Applicant means a person who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the invitation made under clause (h) of sub-section (2) of Section 25. No changes to the IBC Ordinance have been made.

What happens after resolution plan is approved?

Once the resolution plan is approved by the Adjudicating Authority, the Corporate debtor is discharged and the said decision is binding on the creditor. Thus, the guarantor cannot be said to be discharged of its liability towards the creditor on the discharge of Principal Debtor’s liability under the IBC.