Termination of pre-packaged insolvency resolution process [ section 54N ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Termination of pre-packaged insolvency resolution process File Application for termination of process Where the resolution professional files an application with the Adjudicating Authority, - (a) under the proviso to section 54K(12) ; or (b) under sub- section (3) of section 54D , the Adjudicating Authority shall, within thirty days of the date of such application, by an order, - (i) terminate the pre-packaged insolvency resolution process; and (ii) provide for the manner of continuation of proceedings initiated for avoidance of transactions under Chapter III or proceedings initiated under section 66 and section 67A , if any. [ Section 54N(1) ] The Resolution professional files an application in Form P13 as per Regulation 49 of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 . Intimate to Adjudicating Authority Where the resolution professional, at any time after the pre-packaged insolvency commencement date, but before the approval of resolution plan under sub- section (4) or sub- section (12), as the case may be, of section 54K , intimates the Adjudicating Authority of the decision of the committee of creditors, approved by a vote of sixty-six per cent. of the voting shares, to terminate the pre-packaged insolvency resolution process, the Adjudicating Authority shall pass an order under sub- section (1). [ Section 54N(2) ] Insolvency Process cost Where the Adjudicating Authority passes an order under sub- section (1), the corporate debtor shall bear the pre-packaged insolvency resolution process costs, if any. [ Section 54N(3) ] Exception of this Section Notwithstanding anything to the contrary contained in this section , where the Adjudicating Authority has passed an order under sub- section (2) of section 54J and the pre-packaged insolvency resolution process is required to be terminated under sub- section (1), the Adjudicating Authority shall pass an order - (a) of liquidation in respect of the corporate debtor as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub- section (1) of section 33 ; and (b) declare that the pre-packaged insolvency resolution process costs, if any, shall be included as part of the liquidation costs for the purposes of liquidation of the corporate debtor. [ Section 54N(4) ] Appeal file against the order passed under section 54N(4) ​​ An appeal against a liquidation order passed under section 33 , or sub- section (4) of section 54L , or sub- section (4) of section 54N , may be filed on grounds of material irregularity or fraud committed in relation to such a liquidation order. [ Section 61(4) ]