Initiation of corporate insolvency resolution process [ Section 54O ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Initiation of corporate insolvency resolution process The committee of creditors, 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 , by a vote of sixty-six per cent. of the voting shares, may resolve to initiate a corporate insolvency resolution process in respect of the corporate debtor, if such corporate debtor is eligible for corporate insolvency resolution process under Chapter II. [ Section 54O(1) ] Notwithstanding anything to the contrary contained in Chapter II, where the resolution professional intimates the Adjudicating Authority of the decision of the committee of creditors under sub-section (1), the Adjudicating Authority shall, within thirty days of the date of such intimation , pass an order to - (a) terminate the pre-packaged insolvency resolution process and initiate corporate insolvency resolution process under Chapter II in respect of the corporate debtor; (b) appoint the resolution professional referred to in clause (b) of section 54E(1) as the interim resolution professional, subject to submission of written consent by such resolution professional to the Adjudicatory Authority in Form P01 as may be specified; and (c) declare that the pre-packaged insolvency resolution process costs, if any, shall be included as part of insolvency resolution process costs for the purposes of the corporate insolvency resolution process of the corporate debtor. [ Section 54O(2) ] Where the resolution professional fails to submit written consent under clause (b) of sub-section (2), the Adjudicating Authority shall appoint an interim resolution professional by making a reference to the Board for recommendation, in the manner as provided under section 16 . [ Section 54O(3) ] Where the Adjudicating Authority passes an order under sub-section (2) - (a) such order shall be deemed to be an order of admission of an application under section 7 and shall have the same effect; (b) the corporate insolvency resolution process shall commence from the date of such order; (c) the proceedings initiated for avoidance of transactions under Chapter III or proceedings initiated under section 66 and section 67A , if any, shall continue during the corporate insolvency resolution process; (d) for the purposes of sections 43 , 46 and 50 , references to insolvency commencement date shall mean pre-packaged insolvency commencement date ; and (e) in computing the relevant time or the period for avoidable transactions, the time-period for the duration of the pre-packaged insolvency resolution process shall also be included, notwithstanding anything to the contrary contained in sections 43 , 46 and 50 . [ Section 54O(4) ]