TMI BlogConsideration and approval of resolution plan [ Section 54K ]X X X X Extracts X X X X X X X X Extracts X X X X ..... the resolution professional within two days of the pre-packaged insolvency commencement date, and the resolution professional shall present it to the committee of creditors . [ Section 54K(1) ] Provide opportunity to corporate debtor (2) The committee of creditors may provide the corporate debtor an opportunity to revise the base resolution plan prior to its approval under sub-section (4) or invitation of prospective resolution applicants under sub-section (5), as the case may be. [ Section 54K(2) ] (3) The resolution plans and the base resolution plan, submitted under this section shall conform to the requirements referred to in sub-sections (1) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the corporate debtor and such other conditions as may be specified. [ Section 54K(6) ] (7) The resolution professional shall present to the committee of creditors, for its evaluation, resolution plans which conform to the requirements referred to in section 30(2) . [ Section 54K(8) ] (8) The committee of creditors shall evaluate the resolution plans presented by the resolution professional and select a resolution plan from amongst them. [ Section 54K(9) ] Select the Resolution Plan (9) Where the committee of creditors decides that the resolution plan selected under sub-section (9) is significantly better than the base resolution plan, such resolution plan may be selected for approval under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vote of not less than 66% of the voting shares, after considering its feasibility and viability, the manner of distribution proposed, taking into account the order of priority amongst creditors as laid down in section 53(1) , including the priority and value of the security interest of a secured creditor and such other requirements as may be specified. [ Section 54K(13) ] (13) While considering the feasibility and viability of a resolution plan, where the resolution plan submitted by the corporate debtor provides for impairment of any claims owed by the corporate debtor, the committee of creditors may require the promoters of the corporate debtor to dilute their shareholding or voting or control rights in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns (4) and (14), claims shall be considered to be impaired where the resolution plan does not provide for the full payment of the confirmed claims as per the updated list of claims maintained by the resolution professional. Time-limit for completion of pre-packaged insolvency resolution process [ Section 54D(2) (3) ] Without prejudice to sub- section (1), within a period of 90 days from the pre-packaged insolvency commencement date , the resolution professional shall submit the resolution plan, as approved by the committee of creditors, to the Adjudicating Authority under sub- section (4) or subsection (12), as the case may be, of section 54K , . [ Section 54D(2) ] Where no resolution plan is approve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the resolution plan has provisions for its effective implementation. Termination of pre-packaged insolvency resolution process [ Section 54N(1) ] Where the resolution professional files an application with the Adjudicating Authority, (a) under the proviso to sub- section (12) of section 54K ; or (b) under sub- section (3) of section 54D , the Adjudicating Authority shall, within thirty days of the date of such application, by an order, - (i) terminate the pre-packaged insolvency resolution process; and (ii) provide for the manner of continuation of proceedings initiated for avoidance of transactions under Chapter III or proceedings initiated under section 66 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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