Report of Insolvency Law Committee – March, 2018

Report of Insolvency Law Committee-March, 2018

The Committee recommended on following issues:

1. Definitions

Financial debt
Interim Finance
Operational Debt 
Related party 

2. Insolvency Resolution by Operational Creditor 
3. Requirement for Operational Creditors to Submit a Certificate from Financial Institutions 
4. Initiation of CIRP by the Corporate Applicant 
5. Moratorium under Section 14 
6. Last Date for Submission of Claims 
7. Tenure of the IRP 
8. Responsibility of Statutory Compliances at various stages of CIRP 
9. Trigger of CIRP by Financial Creditors 
10. Manner of Representation of Large Number of Creditors in the CoC 
11. Voting Share Threshold For Decisions of the CoC 
12. Consent of Insolvency Professional for Appointment 
13. Running the Corporate Debtor 
14. Eligibility to Submit a Resolution Plan 
15. Acceleration of Debt 
16. Resolution Plans Requiring Approval from Regulators or Authorities 
17. Exemption from Shareholder Approval 
18. Value Guaranteed to Operational Creditors under a Resolution Plan 
19. Appeal from Acceptance of Claims in Liquidation 
20. Avoidance of Undervalued Transactions 
21. Treatment of Subordination Agreements within the Liquidation Waterfall 
22. Fast-Track CIRP 
23. Linking Proceedings of Corporate Guarantor with Corporate Debtor 
24. Punishment for Transactions Defrauding Creditors 
25. Treatment of Winding up Proceedings Initiated under CA 1956/ CA 2013 vis- a-vis provisions of the Code 
26. Enabling the Central Government to Exempt or Vary the Code for Certain Classes of Companies 
27. Treatment of MSMEs 
28. Application of Limitation Act, 1963 
29. Withdrawal of CIRP Proceedings Pursuant to Settlement
30. Value Guaranteed to Dissenting Financial Creditors 
31. Default Amount For Triggering Insolvency Resolution Process

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