(1) Where the Adjudicating Authority,—
(a) does not receive a resolution plan for approval, within the period stipulated under section 58D;
(b) is satisfied that the corporate debtor or its personnel have failed to assist or cooperate with the resolution professional; or
(c) rejects the resolution plan under sub-section (2) of section 58J read with sub-section (2) of section 31, it shall, by an order,–
(i) convert the creditor-initiated insolvency resolution process to corporate insolvency resolution process under Chapter II and provisions of such Chapter shall apply;
(ii) decide the stage from which the corporate insolvency resolution process shall commence, after considering any recommendation of the committee of creditors, made in such manner as may be specified;
(iii) appoint the resolution professional for the creditor-initiated insolvency resolution process, as the interim resolution professional or the resolution professional for the corporate insolvency resolution process, as the case may be;
(iv) declare a moratorium for the purposes referred to in section 14; and
(v) declare that the costs incurred during the creditor-initiated insolvency resolution process, if any, shall be included as part of insolvency resolution process costs for the purposes of the corporate insolvency resolution process of the corporate debtor.
(2) Where the committee of creditors, at any time during the creditor-initiated insolvency resolution process period, by a vote of not less than sixty-six per cent. of the voting share, resolves to convert the creditor-initiated insolvency resolution process to the corporate insolvency resolution process in respect of the corporate debtor, the resolution professional shall make an application for this purpose to the Adjudicating Authority in such form and manner as may be specified, and the Adjudicating 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.”.