TaxTMI 
TaxTMI 
Insertion of new Chapter IV-A in Part II.
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....ill undergoing under the provisions of Part II; and (b) that has undergone a creditor-initiated insolvency resolution process, pre-packaged insolvency resolution process or completed a corporate insolvency resolution process, during the period of three years preceding the creditor-initiated insolvency commencement date. Initiation of creditor-initiated insolvency resolution process. 58B. (1) A financial creditor, belonging to such class of financial institutions as may be notified by the Central Government, in respect of which a default is committed by a corporate debtor, may initiate the creditor-initiated insolvency resolution process for such corporate debtor by appointing a resolution professional in accordance with the provisions of this section, and subject to such conditions, as may be prescribed. (2) The financial creditor seeking to initiate the creditor-initiated insolvency resolution process shall, before appointing the resolution professional,-- (a) obtain the approval of the financial creditors of the corporate debtor belonging to the class of financial institutions notified under sub-section (1), who represent not less than....
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....er as may be specified, and the creditor-initiated insolvency resolution process shall be deemed to have commenced from the date of such public announcement. (5) Notwithstanding anything contained in sections 7, 9, 10 and 54C, no application for initiation of the corporate insolvency resolution process or the pre-packaged insolvency resolution process in respect of the corporate debtor shall be filed or admitted during the creditor-initiated insolvency resolution process period. Explanation.--For the purposes of this Chapter,-- (i) "creditor-initiated insolvency commencement date" means the date of the public announcement referred to in sub-section (4) of section 58B; and (ii) "creditor-initiated insolvency resolution process period" means the period beginning from the creditor-initiated insolvency commencement date and ending on the date on which an order is passed under sub-section (1) of section 58H or under sub-section (1) of section 58-I or under section 58J read with section 31. Objections to commencement of process. 58C. (1) If the corporate debtor has any objection to the commencement of the process under section 58B, it....
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....n professional. 58E. (1) The resolution professional, shall exercise and perform the following powers and duties during the creditor-initiated insolvency resolution process period, in such manner and subject to such conditions as may be specified, namely:-- (a) call for the submission of claims; (b) prepare the information memorandum; (c) prepare a report in such form as may be specified, confirming whether the conduct of the creditor-initiated insolvency resolution process is in accordance with the procedural requirements and that the resolution plan, filed along with it, complies with the requirements of sections 29A and 30 which shall, mutatis mutandis, apply to the proceedings under this Chapter; (d) duties referred to in clauses (a) to (c) of section 18 and clauses (e) to (j) of sub-section (2) of section 25 which shall, mutatis mutandis, apply to the proceedings under this Chapter; (e) powers as referred to in sub-sections (3) and (4) of section 54F which shall, mutatis mutandis, apply to the proceedings under this Chapter; (f) file such report and documents with the Board, as may be specified; and (g) pe....
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....n application to the Adjudicating Authority for a moratorium for the purposes referred to in sub-section (1) read with sub-section (3) of section 14, which shall, mutatis mutandis apply, to the proceedings under this Chapter: Provided that the resolution professional may file such application before the constitution of the committee of creditors, after obtaining approval of the financial creditors of the corporate debtor belonging to the class of financial institutions notified under sub-section (1) of section 58B, who represent not less than fifty-one per cent. in value of the debt due to such financial creditors, in such manner as may be specified. (2) Where an application has been made in sub-section (1), a moratorium for the purposes referred to in sub-section (1) read with sub-section (3) of section 14 shall commence from the date of the application and continue to be in operation during the creditor-initiated insolvency resolution process period, and the Adjudicating Authority may confirm the moratorium, if it is satisfied that the moratorium is required for the proper and efficient conduct of the creditor-initiated insolvency resolution process, or reject t....
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....cating Authority shall pass an order as referred to in sub-clauses (i) to (v) of sub-section (1). (3) Where the Adjudicating Authority passes an order to convert the creditor-initiated insolvency resolution process to the corporate insolvency resolution process under Chapter II- (a) the proceedings initiated for an avoidance transaction or fraudulent or wrongful trading or under section 47, if any, during the creditor-initiated insolvency resolution process shall continue during the corporate insolvency resolution process; (b) such order shall be deemed to be an order of admission of an application under section 7 and the financial creditor who initiated the creditor-initiated insolvency resolution process under section 58B, shall be considered as the applicant for that purpose; and (c) for the purposes of sections 43, 46 and 50, the references to "initiation date and ending on the insolvency commencement date" shall be construed as "creditor-initiated insolvency commencement date and ending on the insolvency commencement date.". Withdrawal of public announcement made under section 58B. 58-I. (1) Subject to sub-section (2), the ....