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What do you mean by the term resolution plan under insolvency and bankruptcy code 2016?
A Resolution Plan is a rehabilitation plan for a CD going in insolvency. Section 5(26) of IBC, 2016 says -“Resolution plan means a plan proposed by resolution applicant for insolvency resolution of the corporate debtor as a going concern in accordance with Part II.”
What is the meaning of resolution plan?
A resolution plan is a comprehensive document, which details the characteristics of a bank and describes the preferred resolution strategy for that bank, including which resolution tools to apply. It concludes with a resolvability assessment of the bank.
What is insolvency resolution plan?
The Corporate Insolvency Resolution Process (‘CIRP’) is a recovery mechanism for the creditors of a corporate debtor. The Insolvency and Bankruptcy Code, 2016 (‘IBC’) lays down the provisions for conducting insolvency or bankruptcy of individuals, partnership firms, LLP and companies.
Who proposes resolution plan?
Ans: As section 5(26) of the Code, resolution plan means a plan proposed by any person for insolvency resolution of the corporate debtor as a going concern in accordance with Part II. It may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger.
Who prepares resolution plan?
Resolution applicant to prepare resolution plan – Resolution Professional can invite prospective resolution applicant/s, who fulfil such criteria as may be laid down by him with the approval of Committee of Creditors (CoC), having regard to the complexity and scale of operations of the business of the corporate debtor …
Who approves the resolution plan under IBC 2016?
(1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve3 the resolution plan which shall be binding on the corporate debtor and …
Who can submit resolution plan?
Such resolution plan is approved by the NCLT subject to the compliance of certain conditions as laid down in Section 30 of the Code. As such, a resolution applicant could have been any person – a creditor, a promoter, a guarantor, a prospective investor, an employee, or any other person.
Who approve the resolution plan?
the committee of creditors
After the resolution plan is approved by the committee of creditors, the resolution professional submits the resolution plan to the Adjudicating Authority. Thereafter, the Adjudicating Authority accords final approval to the resolution plan under section 31(1) of the Code.
Who makes resolution plan?
Effect of Approval: If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub section (4) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, including the Central …
Who can initiate insolvency resolution process?
Financial Creditor
Financial Creditor can initiate insolvency resolution proceedings. “Financial creditor” means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to – Section 5(7) of Insolvency Code, 2016.