TaxTMI 
TaxTMI 
Stakeholders’ consultation committee
X X X X Extracts X X X X
X X X X Extracts X X X X
....gulation (2) of regulation 35; (e) the manner in which proceedings in respect of preferential transactions, undervalued transaction, extortionate credit transaction or fraudulent or wrongful trading, if any, shall be pursued after closure of liquidation proceedings and the manner in which the proceeds, if any, from these proceedings shall be 15[distributed;]]] 16[(f) review of marketing strategy in case of failure of sale of corporate debtor as a going concern; (g) continuation or institution of any suits or legal proceedings by or against the corporate debtor; (h) extension of payment of balance sale consideration as provided in clause (12) of Para 1 of Schedule I, beyond ninety days, to be disclosed in the auction notice.] 7[(1A)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntatives in the consultation committee shall have access to all relevant records and information as may be required to provide advice to the liquidator under sub-regulation (1). 11[(6) The liquidator shall convene the first meeting of the consultation committee within seven days of the liquidation commencement date and may convene other meetings, if he considers necessary, on a request received from one or more members of the consultation committee: Provided that when a request is received by the liquidator from members, individually or collectively, having at least thirty three percent of the total voting rights, the liquidator shall mandatorily convene the meeting.] 17[Provided further that the liquidator shall convene subsequent mee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tee shall not be binding on the liquidator: Provided that where the liquidator takes a decision different from the advice given by the consultation committee, he shall record the reasons for the same in writing 4[13[submit the records relating to the said decision, to the Adjudicating Authority and to the Board within five days of the said decision; and include it in the next progress report]]. 5[Explanation.- It is hereby clarified that the requirements of this regulation shall apply to the liquidation processes commencing on or after the date of the commencement of the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019.] 14[(11) The consultation committee, after recording the reasons, may by a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t was read as "(4) If the stakeholders of any class fail to nominate their representatives, the required number of stakeholders with the highest claim amount in that class shall be included in the consultation committee. " 4. Inserted vide Notification No. IBBI/2021-22/GN/REG079 dated 30-09-2021 5. Inserted vide Notification No. IBBI/2022-23/GN/REG082 dated 28-04-2022 6. Substitute vide Notification No. IBBI/2022-23/GN/REG094 dated 16-09-2022, before it was read as :- "(1) The liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date, based on the list of stakeholders prepared under regulation 31, to advise him on matters relating to- (a) appointment of professionals and....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., subject to a maximum of 1 Number of creditors in the category, subject to a maximum of 2 Workmen and employees 1 1 Governments 1 1 Operational creditors other than Workmen, employees and Governments Where claims of such creditors admitted during the liquidation process is less than 25% of liquidation value Number of creditors in the category, subject to a maximum of 1 Where claims of such creditors admitted during the liquidation process is at least 25 % of liquidation value Number of creditors in the category, subject to a maximum of 2 Shareholders or partners, if any 1" 9. Substitute vide Notification No. IBBI/2022-23/GN/REG094 dated 16-09-2022, before it was read as :- "The liquidator may facilitate the stakeholders....