Application to initiate prepackaged insolvency resolution process [ Section 54C ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Application to initiate prepackaged insolvency resolution process [ Section 54C ] Eligible for filling for Application [ Section 54C(1) ] Where a corporate debtor meets the requirements of section 54A , a corporate applicant thereof may file an application with the Adjudicating Authority for initiating pre-packaged insolvency resolution process. Filing of application [ Section 54C(2) read with Rule 4 of IBBI (prepackaged insolvency resolution process) Rules, 2021 ] The application under section 54C(1) shall be filed in form 1, containing such particulars, in such manner and accompanied with Proof that the application fee of ₹15,000 has been paid. File application with following documents [ Section 54C(3) ] The corporate applicant shall, along with the application, furnish- (a) the declaration, special resolution or resolution , as the case may be, and the approval of financial creditors for initiating pre-packaged insolvency resolution process in terms of section 54A ; (b) the name and written consent , in such form as may be specified, of the insolvency professional proposed to be appointed as resolution professional, as approved under clause (e) of section 54A(2) , and his report as referred to in clause (a) of section 54B(1); (c) a declaration regarding the existence of any transactions of the corporate debtor that may be within the scope of provisions in respect of avoidance of transactions under Chapter III or fraudulent or wrongful trading under Chapter VI, in form P7 as may be specified; [ Read with Regulation 16 of IBBI (prepackaged insolvency resolution process) Regulation, 2021 ] (d) information relating to books of account of the corporate debtor and such other documents relating to such period as may be specified. [ Read with Regulation 18 of IBBI (prepackaged insolvency resolution process) Regulation, 2021 ] Time period for Accepting or Rejecting Application [ Section 54C(4) ] The Adjudicating Authority shall , within a period of 14 days of the receipt of the application, by an order, (a) admit the application, if it is complete; or (b) reject the application, if it is incomplete, Before rejecting an application , give notice to the applicant to rectify the defect in the application within 7 days from the date of receipt of such notice from the Adjudicating Authority. Commencement date of admission of application [ Section 54C(5) ] The pre-packaged insolvency resolution process shall commence from the date of admission of the application under clause (a) of section 54C(4).