A Complete Guide on Resolution Plan under Insolvency & Bankruptcy

ABOUT A Complete Guide on Resolution Plan under 

CONTENTS

Preface………………………………………………………………………………………………………………….v
Table of Cases……………………………………………………………………………………………………… xi
CHAPTER 1
Introduction of Process and Role of Resolution Professional
1.1 Introduction of Process of Resolution Plan………………………………………….1
1.2 Role of Resolution Profiessional………………………………………………………….4
1.3 Duties of Resolution Professional ………………………………………………………5
CHAPTER 2
Information Memorandum
2.1 Introduction………………………………………………………………………………………..8
2.2 Definition of Information Memorandum…………………………………………….8
2.3 Access of Information Memorandum to Prospective
Resolution Applicant…………………………………………………………………………..8
2.4 Time Limit for Preparation of Information Memorandum………………….9
2.5 Contents/details in Information Memorandum…………………………………..9
2.6 Undertaking of Confidentiality …………………………………………………………11
2.7 Relevant Statutory Provision …………………………………………………………….13
CHAPTER 3
Expression of Interest
3.1 Introduction………………………………………………………………………………………22
3.2 Point of Time for Publication…………………………………………………………….22
3.3 Place of Publication and Medium ……………………………………………………..23
3.4 Last Date for Expression of Interest…………………………………………………..24
3.5 Necessary Contents of Detailed Invitation ………………………………………..41
3.6 Undertaking, etc., with Expression of Interest…………………………………..42
3.7 Due Diligence by Resolution Professional…………………………………………44
3.8 Provisional and Final List of Prospective Resolution Applicant………..45
3.9 Re-issuance of Expression of Interest ……………………………………………….47
3.10 Relevant Statutory Provision …………………………………………………………….51
CHAPTER 4
Request for Resolution Plan
4.1 Introduction………………………………………………………………………………………54
4.2 Issuance of Request for Resolution Plan ……………………………………………54

viii Contents
4.3 Details in Request for Resolution Plan ………………………………………………54
4.4 Timeline for Submission of Resolution Plan……………………………………..57
4.5 Deposit for Submission of Resolution Plan ……………………………………….57
4.6 Performance Security ………………………………………………………………………..57
4.7 Modification in Request for Resolution Plan……………………………………..57
4.8 Request for Resolution Plan for Sale of Assets of the Corporate
debtor ……………………………………………………………………………………………….57
4.9 Re-issue of Request for Resolution Plan…………………………………………….58
4.10 Sample Format of RFRP…………………………………………………………………….59
4.11 Relevant Statutory Provision …………………………………………………………….71
CHAPTER 5
Evaluation Matrix
5.1 Introduction………………………………………………………………………………………74
5.2 Meaning of Evaluation Matrix…………………………………………………………..74
5.3 Evaluation Criteria ……………………………………………………………………………74
5.4 Building of Evaluation Matrix …………………………………………………………..77
5.5 Evaluation Matrix Sample…………………………………………………………………77
CHAPTER 6
Resolution Plan
6.1 Introduction………………………………………………………………………………………81
6.2 Contents of Resolution Plan………………………………………………………………92
6.3 Transfer of Assets of Corporate Debtor to Resolution Applicant ……100
6.4 Distribution of Resolution Fund………………………………………………………151
6.5 Discrimination in Payment………………………………………………………………342
6.6 Supply of Goods and Services & Transferred of Real Estate
Related Right…………………………………………………………………………………..348
6.7 Contingent Claim…………………………………………………………………………….389
6.8 Claim Submitted after Approval of Resolution Plan by CoC……………392
6.9 Other Creditors’ Claim …………………………………………………………………..397
6.10 Change in Nature of Business………………………………………………………….404
6.11 Conditional or Contingent Resolution Plan……………………………………..409
6.12 Miscellaneous………………………………………………………………………………….411
6.13 Sample Resolution Plan …………………………………………………………………..419
6.14 Related Statutory Provision …………………………………………………………….432

Contents ix

CHAPTER 7
Mandatory Contents of Resolution Plan
7.1 Introduction…………………………………………………………………………………….434
7.2 Mandatory Details of Resolution Plan……………………………………………..434
7.3 Related Statutory Provisions …………………………………………………………..473
CHAPTER 8
Person not Eligible to Submit Resolution Plan
8.1 Background & Introduction ……………………………………………………………475
8.2 No Ineligibility if Clauses (A) to (G) not Attracted ………………………….488
8.3 Constitutional Validity…………………………………………………………………….490
8.4 Resolution Applicatnt has no Vested Right ……………………………………..491
8.5 Persons Ineligible to Submit Resolution Plan…………………………………..493
8.6 Exemption to MSME ……………………………………………………………………….544
8.7 Ineligibility has to be Seen Strictly in the Lens of Section 29A
(Strict Adherence to Section 29A for Ineligibility)……………………………566
8.8 Effect of Pending Cases against Resolution Applicant …………………….571
8.9 Statutory Provision (Section 29A) ……………………………………………………573
CHAPTER 9
Submission of Resolution Plan
9.1 Submission of Resolution Plan ………………………………………………………..580
9.2 Examiantion/Scrutiny by RP [Section 30(2)]…………………………………….596
9.3 Permission to Resolution Applicant to Attend Meeting of CoC……….604
9.4 Relevant Statutory Provisions………………………………………………………….604
CHAPTER 10
Consideration by Committee of Creditors
10.1 Introduction…………………………………………………………………………………607
10.2 Copy of Resoution Plan ……………………………………………………………….619
10.3 Commercial Wisdom of CoC ……………………………………………………….629
10.4 Consideration ……………………………………………………………………………..644
10.5 Challenge Mechanism …………………………………………………………………671
10.6 Rejection………………………………………………………………………………………691
10.7 Objection ……………………………………………………………………………………..701
10.8 Evaluation of Resolution Plan………………………………………………………704
10.9 Voting & Approval………………………………………………………………………712
10.10 Effect of Approval………………………………………………………………………..744
10.11 Withdrawal of Resolution Plan…………………………………………………….748
10.12 Statutory Provision………………………………………………………………………760