valid as on 28/07/2021

2.18.50. Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021

(1) The corporate debtor shall not manage the affairs of the corporate debtor in a manner prejudicial to the creditors of the corporate debtor or in a fraudulent manner.

(2) The corporate debtor shall not undertake any of the following actions without obtaining prior approval of the committee, namely:-

(a) transaction above a threshold as decided by the committee; and

(b) any other matter as decided by the committee and not covered under section 28.

(3) The corporate debtor in consultation with the resolution professional shall prepare a monthly report and forward it to the members of the committee with the following details:-

(a) details of legal proceedings having a material impact on the business of the corporate debtor;

(b) details of key contracts executed during the reporting period; and

(c) any other relevant matter(s) that may have a material impact on the business of the corporate debtor.

(4) The resolution professional may-

(a) call for information related to operations of the corporate debtor, including payments made;

(b) visit premise(s) of the corporate debtor;

(c) inspect the assets of the corporate debtor;

(d) call for information related to compliances applicable to the corporate debtor and its status;

(e) ask for details related to litigation initiated by or against corporate debtor; and

(f) ask details for ascertaining the conduct of corporate debtor during the process.

Inserted vide Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 dated 09.04.2021. To view the notification, Click Here.

Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 dated 09.04.2021


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