(1) The resolution professional shall prepare an information memorandum in such form and manner containing such as may be specified by the Board for formulating a resolution plan.

(2) The  shall provide to the resolution applicant access to all relevant information in physical and electronic form, provided such resolution applicant undertakes—

(a) to comply with provisions of law for the time being in force relating to confidentiality and insider trading;

(b) to protect any intellectual property of the corporate debtor it may have access to; and

(c) not to share relevant information with third parties unless clauses (a) and (b) of this sub-section are complied with.

Explanation.—For the purposes of this section, “relevant information” means the information required by the resolution applicant to make the resolution plan for the corporate debtor, which shall include the financial position of the corporate debtor, all information related to disputes by or against the corporate debtor and any other matter pertaining to the corporate debtor as may be specified.

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—

(a) is an undischarged insolvent;

(b) is a wilful defaulter in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949;

(c) has an account , or an account of a corporate debtor under the management or control of such person or of whom such person is a promoter, classified as non-performing asset in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949  and at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor:

Provided that the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to non-performing asset accounts before submission of resolution plan;

 nothing in this clause shall apply to a resolution applicant where such applicant is a financial entity and is not a related party to the corporate debtor.

Explanation I.-For the purposes of this proviso, the expression “related party’ shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shares or instruments convertible into equity shares , prior to the insolvency commencement date.

Explanation II.-For the purposes of this clause, where a resolution applicant has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is a promoter, classified as non-performing asset and such account was acquired pursuant  to a prior resolution plan approved under this Code, then, the provisions of this clause shall not apply to such resolution applicant for a period of three years from the date of approval of such resolution plan by the Adjudicating Authority under this Code.

(d) has been convicted for any offence punishable with imprisonment for two years or more;

has been convicted for any offence punishable with imprisonment-

(i) for two years or more under any Act specified under the  ; or

(ii) for seven years or more under any other law for the time being in force:

Provided that this clause shall not apply to a person after the expiry of a period of two years from the date of his release from imprisonment:

Provided further that this clause shall not apply in relation to a connected person referred to in clause (iii) of Explanation I;

(e) is disqualified to act as a director under the Companies Act, 2013;
this clause shall not apply in relation to a connected person referred to in clause (iii) of Explanation I;

(f) is prohibited by the Securities and Exchange Board of India from trading in securities or accessing the securities markets;

(g) has been a promoter or in the management or control of a corporate debtor in which a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place and in respect of which an order has been made by the Adjudicating Authority under this Code;

this clause shall not apply if a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place prior to the acquisition of the corporate debtor by the resolution applicant pursuant to a resolution plan approved under this Code or pursuant to a scheme or plan approved by a financial sector regulator or a court, and such resolution applicant has not otherwise contributed to the preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction;

(h) has executed an enforceable guarantee  in favour of a creditor in respect of a corporate debtor against which an application for insolvency resolution made by such creditor has been admitted under this Code ;

(i) has been subject to any disability, corresponding to clauses (a) to (h), under any law in a jurisdiction outside India; or

(j) has a connected person not eligible under clauses (a) to (i).

Explanation. — For the purposes of this clause, the expression “connected person” means—

(i) any person who is the promoter or in the management or control of the resolution applicant; or

(ii) any person who shall be the promoter or in management or control of the business of the corporate debtor during the implementation of the resolution plan; or

(iii) the holding company, subsidiary company, associate company or related party of a person referred to in clauses (i) and (ii):

Provided that nothing in clause (iii) of this Explanation shall apply to—

(A) a scheduled bank; or

(B) an asset reconstruction company registered with the Reserve Bank of India under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; or

(C) an Alternate Investment Fund registered with the Securities and Exchange Board of India.

nothing in clause (iii) of Explanation I shall apply ro aresolution applicant where such applicant is a financial entity and is not a related party of the corporate debtor:

Provided further that the expression “related party” shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shares or instruments convertible into equity shares , prior to the insolvency commencement date;

For the purposes of this section, “financial entity” shall mean the Central Government may, in consultation with the financial sector regulator, notify in this behalf, namely:-

(a) a scheduled bank;

(b) any entity regulated by a foreign central bank or a securities market regulator of a jurisdiction outside India which jurisdiction is compliant with the Financial Action Task Force Standards and is a signatory to the International Organisation of Securities Commissions Multilateral Memorandum of Understanding;

(c) any investment vehicle, registered foreign institutional investor, registered foreign portfolio investor or a foreign venture capital investor, where the terms shall have the meaning assigned to them in regulation 2 of the Foreign Exchange Management (transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 made under the Foreign Exchange Management Act, 1999

(d) an asset reconstruction company registered with the Reserve Bank of India under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

(e) an Alternate Investment Fund registered with the Securities and Exchange Board of India;

(f) such categories of persons as may be notified by the Central Government.

A person shall not be eligible to submit a resolution plan, if such person, or any other person acting jointly with such person, or any person who is a promoter or in the management or control of such person,—

(a) is an undischarged insolvent;

(b) has been identified as a wilful defaulter in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949;

(c) whose account is classified as non-performing asset in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949 and period of one year or more has lapsed from the date of such classification and who has failed to make the payment of all overdue amounts with interest thereon and charges relating to non-performing asset before submission of the resolution plan;

(d) has been convicted for any offence punishable with imprisonment for two years or more; or

(e) has been disqualified to act as a director under the Companies Act, 2013;

(f) has been prohibited by the Securities and Exchange Board of India from trading in securities or accessing the securities markets;

(g) has indulged in preferential transaction or undervalued transaction or fraudulent transaction in respect of which an order has been made by the Adjudicating Authority under this Code;

(h) has executed an enforceable guarantee in favour of a creditor, hi respect of a corporate debtor under insolvency resolution process or liquidation under this Code;

(i) where any connected person in respect of such person meets any of the criteria specified in clauses (a) to (h).

Explanation.— For the purposes of this clause, the expression “connected person” means—

(i) any person who is promoter or in the management or control of the resolution applicant; or

(ii) any person who shall be the promoter or in management or control of the business of the corporate debtor during the implementation of the resolution plan; or

(iii) the holding company, subsidiary company, associate company or related party of a person referred to in clauses (i) and (ii)

(j) has been subject to any disability, corresponding to clauses (a) to (i), under any law in a jurisdiction outside India.

IBC-Enforcement Notification [S.O.3594(E)] dated 30/11/2016

Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 [repealed by the Insolvency and Bankruptcy Code (Amendment) Act, 2018 w.e.f., 23.11.2017]

Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 dated 06.06.2018 [repealed by the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018]

The Insolvency and Bankruptcy Code (Amendment) Act, 2018 (effective from 23.11.2017)

The Insolvency and Bankruptcy Code (Amendment) Act, 2020 dated 13.03.2020 w.e.f. 28.12.2019

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 dated 28.12.2019

The Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018

Circular No. IP(CIRP)/007/2018 dated 23.02.2018

IBBI Clarification dated 13.11.2020 regarding Mistakes committed by insolvency professionals in conduct of corporate insolvency resolution process

Twelfth Schedule

(See clause (d) of Section 29A)

ACTS FOR THE PURPOSES OF CLAUSE (d) OF SECTION 29A
(1) The Foreign Trad (Development and Regulation) Act, 1992 (22 of 1922)
(2) The Reserve Ban of India Act, 1934 (2 of 1934)
(3) The Central Excise Act, 1944 (1 of 1944)
(4) The Preservation of Food Adulteration Act, 1954 (37 of 1954)
(5) The Essential Commodities Act, 1955 (10 of 1955)
(6) The Securities Contracts (Regulation) Act,1956 (42 of 1956)
(7) The Income- tax Act,1961 (43 of 1961)
(8) The Customs Act, 1962 (52 of 1962)
(9) The Water (Preservation and Control of Pollution) Act, 1974 (6 of 1974)
(10) The Conservation of Foreign Exchange and Preservation of Smuggling Activities Act, 1974 (52 of 1974)
(11) The Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981)
(12) The Sick Industrial Companies (Special provisions) Act, 1985 (1 or 1986)
(13) The Environment (Protection) Act, 1986 (23 of 1986)
(14) The prohibition of Benami Property Transactions Act, 1988 (45 of 1988)
(15) The Preservation of Corruption Act, 1988 (49 of 1988)
(16) The Securities and Exchange Board of India Act, 1992 (15 of 1992)
(17) The Foreign Exchange Management Act, 1999 (42 of 1999)
(18) The Competition Act, 2002 (12 of 2003)
(19) The Prevention of Money-laundering Act,2002 (15 of 2003)
(20) The Limited Liability Partnership Act, 2008 (6 of 2009)
(21) The Foregin Contribution (Regulation) Act, 2010 (42 of 2010)
(22) The Companies Act, 2013 (18 of 2013) or any previous company law
(23) The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015)
(24) The Insolvency and bankruptcy Code. 2016 (31 of 016)
(25) The Central Goods and Services Tax Act, 2017 (12 of 2017) and respective State Acts imposing State goods and service tax
(26) such other Acts as may be notified by the Central Government

Every notification issued under this Schedule shall be laid, as soon as may be after it is issued, before each House of Parliament.