Question: Who Approves Resolution Plan?

Who is resolution applicant?

“resolution applicant” means a person, who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the invitation made under clause (h) of sub-section (2) of section 25”..

What is a bank resolution plan?

A resolution. plan is a plan for liquidating, reorganizing, recapitalizing or otherwise resolving. a systemically important financial institution (“SIFI”) that has reached the point. of insolvency, non-viability or failure.

Who can submit resolution plan IBC?

Proviso to Section 29A (C) Ineligibility to be a Resolution Applicant A person can be eligible to submit resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to nonperforming asset accounts before submission of resolution plan.

What happens after resolution plan is approved?

Once the resolution plan is approved by the Adjudicating Authority, the Corporate debtor is discharged and the said decision is binding on the creditor. Thus, the guarantor cannot be said to be discharged of its liability towards the creditor on the discharge of Principal Debtor’s liability under the IBC.

What is insolvency resolution plan?

An Insolvency Resolution Plan for any CD is a unique combination of financial, legal, management and technical features which would provide a reasonable assurance of sustainable viability over the period of recovery from internal or external stresses.

Is IBC applicable to banks?

Financial service providers are ordinarily not covered under the Insolvency and Bankruptcy Code. Under the rules notified, the code can be invoked to find a resolution for stressed finance companies such as Dewan Housing Finance Corporation Ltd. (DHFL). These rules will not apply to banks.

Can a promoter be a resolution applicant?

The Insolvency and Bankruptcy Code (IBC) 2016 in its preamble identifies itself as a law for reorganisation and resolution of companies. … Under it, promoters or persons who controlled the insolvent company cannot apply as resolution applicant.

What is the voting requirement for approval of resolution plan by creditors as per IBC 2016?

Further, Section 30(4) states that the CoC may approve a resolution plan by a vote of not less than sixty-six per cent of voting share of the financial creditors, after considering its feasibility and viability, the manner of distribution proposed, which may take into account the order of priority amongst creditors as …

Who Cannot be a resolution applicant?

(c) A person shall not be eligible to submit a resolution plan, if such person, or any other person acting jointly or in concert with such person at the time of submission of the resolution plan has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is …

What is a 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.

Who is the regulator under IBC?

Who regulates the IBC proceedings? Insolvency and Bankruptcy Board of India has been appointed as a regulator and it can oversee these proceedings. IBBI has 10 members; from Finance Ministry and Law Ministry the Reserve Bank of India.

What is meant by resolution?

Resolution measures the number of pixels in a digital image or display. It is defined as width by height, or W x H, where W is the number of horizontal pixels and H is the number of vertical pixels. For example, the resolution of an HDTV is 1920 x 1080.

What is resolution and recovery planning?

The term refers to planning by a financial institution and the authorities for the eventuality the firm suffers life-threatening losses. The standards state each firm should maintain a recovery plan that spells out what the management could do to keep the firm solvent. …

Who is covered in the definition of financial service regulator under the code?

For instance, the Reserve Bank of India (RBI) is the regulator for banks, and Insurance Regulatory and Development Authority of India (IRDAI) for insurance companies.

Can Nclt order be challenged?

NCLT, may prefer an appeal to the National Company Law Appellate Tribunal (“NCLAT”) under Section 61. … Further, any person aggrieved by an order of the NCLAT or DRAT may file an appeal to the Supreme Court on a question of law arising out of such order.

What is CoC in IBC?

The Committee of Creditors (‘CoC’) is the most important cog in the wheel of IBC. The CoC, consisting of financial creditors in general, call the shots in relation to a company undergoing corporate insolvency resolution process (CIRP). The CoC takes several decisions during the CIRP period.

Who is ineligible to be a resolution applicant?

Therefore, any company (including the promoters/persons in the management of or control of such company) which has its account classified as NPA for last 1 year will not be able to file a resolution plan however, the Code provides for a carve out that such person shall be eligible to submit the resolution plan if such …

What is resolution plan in IBC?

(1-A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor. a. Status of workmen (if any) and compliance with respect to labour laws. b.