Vesting management of corporate debtor with resolution professional [ Section 54J ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Vesting management of corporate debtor with resolution professional [ Section 54J read with regulation 14 51 of IBBI of (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ] Make a application [ Section 54J(1) ] Where the committee of creditors, at any time during the pre-packaged insolvency resolution process period resolves to vest the management of the corporate debtor with the resolution professional , by a vote of not less than 66% of the voting shares, the resolution professional shall make an application for this purpose to the Adjudicating Authority, in Form P14 and manner as may be specified. Order passed by the Adjudicating Authority [ Section 54J(2) ] On an application made under section 54J(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. Other provisions also applicable with section 54J [ Section 54J(3) ] Notwithstanding anything to the contrary contained in this Chapter, the following provisions of shall, mutatis mutandis apply, to the proceedings under this Chapter, from the date of the order under section 54J(2), until the pre-packaged insolvency resolution process period comes to an end. (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 , Appointment Fees of Management of corporate Debtor under section 54J [ Regulation 14 of of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ] The approval of the terms of appointment of resolution professional under clause (e) of section 54A(2) shall be in Form P3 . [ Regulation14(5) ] The terms of appointment of the resolution professional under this regulation shall include fee payable to him and expenses to be incurred by him in case management of the corporate debtor is vested with him under section 54J . [ Regulation 14(6)(c) ] Power of make Regulation [ Section 240 ] The Board may, by notification, make regulations consistent with this Code and the rules made thereunder, to carry out the provisions of this Code. [ Sub-section (1) ] In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, Clause (zko) the form and manner of making application under sub-section (1) of section 54J. [ Sub - section (2) ]