Regulation 29 - Sale of assets outside the ordinary course of business. - Insolvency and Bankruptcy Board of India (Insolvency Resolution Process For Corporate Persons) Regulations, 2016

Sale of assets outside the ordinary course of business. 29. (1) The resolution professional may sell unencumbered asset(s) of the corporate debtor, other than in the ordinary course of business, if he is of the opinion that such a sale is necessary for a better realisation of value under the facts and circumstances of the case: Provided that the book value of all assets sold during corporate insolvency resolution process period in aggregate under this sub-regulation shall not exceed ten percent of the total claims admitted by the interim resolution professional. (2) A sale of assets under this Regulation shall require the 1 [ approval of the committee by a vote of sixty-six per cent of voting share of the members ] (3) A bona fide purchaser of assets sold under this Regulation shall have a free and marketable title to such assets notwithstanding the terms of the constitutional documents of the corporate debtor, shareholders' agreement, joint venture agreement or other document of a similar nature. ******** Notes 1. Substituted vide Notification No. IBBI/2018-19/GN/REG031 dated 03-07-2018 before it was read as approval of the committee