April 12, 2021
Summary of the notifications issued by MCA and IBBI on 09/04/2021
Government notifies the minimum amount of default to initiate Pre-Packaged Insolvency Resolution Process (IRP) of Corporate Debtor under IBC, 2016
Through this notification, the Central Government has notified Ten Lakh rupees as the minimum amount of default for the matters relating to the pre-packaged insolvency resolution process of corporate debtor under Chapter to III-A of the Code.
MCA notifies Insolvency and Bankruptcy (prepackaged insolvency resolution process) Rules, 2021
The said Rules specifies the process through which a corporate applicant shall file an application for initiating pre-package insolvency resolution process under the IBC, 2016 in Form 1 (prescribed in the Rules), accompanied with affidavit, documents or records as referred in Annexures therein, in electronic form, along with a fee of rupees fifteen thousand or in the physical form, as required in the said Rules. The Corporate Applicant shall also serve a copy of the application to the Board and the Adjudication Authority in the prescribed manner.
IBBI notifies Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021.
Key Highlights of the regulations are as follows:
– the eligibility, appointment, fees and reporting requirements of the Resolution Professional
– Process of Initiation of the Prepackaged IRP including manner of obtaining the approval from financial creditors
– Manner of making public announcements and publishing the list of claims
– Constitution and Meetings of Creditors
– Appointment of Registered Valuers and Determination of Fair Value
– Preparation, Evaluation and Submission of Resolution Plan
– Managing the affairs of the Corporate Debtor and procedure to vest the same with the Resolution Professional
These notifications are available on our free to use website www.ca2013.com for your quick reference.