The Insolvency and Bankruptcy Code, 2016
IBBI (Pre-Packaged Insolvency Resolution Process) Regulations, 2021
Chapter X – Management of Affairs of the Corporate Debtor
Regulation 50: Management during the process.
50. (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.
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