[Duties and powers of resolution professional during prepackaged insolvency resolution process [ Section 54F ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Duties and powers of resolution professional during prepackaged insolvency resolution process Duties of Resolution Professional during the insolvency resolution process [ Section 54F (1) (2) ] The resolution professional shall conduct the pre-packaged insolvency resolution process of a corporate debtor during the pre-packaged insolvency resolution process period. [ Sub section (1) ] The resolution professional shall perform the following duties, namely:- (a) confirm the list of claims submitted by the corporate debtor under section 54G , in such manner as may be specified in Regulation 20(2) of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ; (b) inform creditors regarding their claims as confirmed under clause (a), in such manner as may be specified Sub-Regulation (3) to (7) of Regulation 20 of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ;; (c) maintain an updated list of claims, in such manner as may be specified in Sub-Regulation (8) (9) of Regulation 20 of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ; (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 in Regulation 40(2) of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ; (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. [ Sub-section (2) ] Power of Resolution Professional during the insolvency resolution process [ Section 54F (3) ] The resolution professional shall exercise the following powers, namely:- (a) access all books of accounts, 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 accounts, records and other relevant documents of the corporate debtor available with Government authorities, statutory auditors, accountants and such other persons as may be specified in the Regulation 9 of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ; (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 in Regulation 10 of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 (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; (ii) financial and operational payments for the previous two years from the date of prepackaged 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. Financial institutions maintaining accounts and the personnel of corporate debtor has any duty with respect to resolution professional conducting prepackaged insolvency resolution process [ Section 54F(4) (5) ] 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. [ Sub-section (4) ] 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. [ Sub-section (5) ] Fee to be charge by the Resolution professional [ Section 54F(6) (7) ] The fees of the resolution professional and any expenses incurred by him for conducting the prepackaged 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. [ Sub- section (6) ] The fees and expenses referred to in sub-section (6) shall be borne in such manner as may be specified. [ Sub-section (7) ] Determination of Claim as per Regulation 21 IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ; (1) Where the amount of claim of a creditor is not precise due to any contingency or other reason, the resolution professional shall make the best estimate of the amount of the claim based on the information available with him. (2) The resolution professional shall revise the amount of claims confirmed, including the estimates of claims made under sub-regulation (1), as soon as may be practicable, when he comes across additional information warranting such revision. Debt in foreign currency as per Regulation 22 IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ; The claims denominated in foreign currency shall be valued in Indian currency at the official exchange rate as on the pre-packaged insolvency commencement date. Explanation .- official exchange rate is the reference rate published by the Reserve Bank of India or derived from such reference rates.