THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - PRS

1 (i)THE INSOLVENCY AND BANKRUPTCY code , 2016 ARRANGEMENT OF CLAUSES PART IPRELIMINARY1. Short title, extent and Definitions. PART I IINSOLVENCY RESOLUTION AND LIQUIDATION FOR CORPORATE PERSONSCHAPTER IPRELIMINARY4. Application of this IICORPORATE INSOLVENCY RESOLUTION PROCESS6. Persons who may initiate corporate INSOLVENCY resolution Initiation of corporate INSOLVENCY resolution process by financial INSOLVENCY resolution by perational Application for initiation of corporate INSOLVENCY resolution process by Initiation of corporate INSOLVENCY resolution process by corporate Persons not entitled to make Time-limit for completion of INSOLVENCY resolution Declaration of moratorium and public Public announcement of corporate INSOLVENCY resolution Appointment and tenure of interim resolution Management of affairs of corporate debtor by interim resolution Duties of interim resolution Personnel to extend co-operation

2 To interim resolution Management of operations of corporate debtor as going Committee of Appointment of resolution Resolution professional to conduct corporate INSOLVENCY resolution Meeting of committee of Duties of resolution PASSED BY LOK SABHA ON No. 349-C of 2015 CLAUSES(ii)26. Application for avoidance of transactions not to affect Replacement of resolution professional by committee of Approval of committee of creditors for certain Preparation of information Submission of resolution Approval of resolution IIILIQUIDATION PROCESS33. Initiation of Appointment of liquidator and fee to be Powers and duties of Liquidation Powers of liquidator to access Consolidation of Verification of Admission or rejection of Determination of valuation of Appeal against the decision of Preferential transactions and relevant Orders in case of preferential Avoidance of undervalued Relevant period for avoidable Application by creditor in cases of undervalued Order in cases of undervalued Transactions defrauding Extortionate credit Orders of Adjudicating Authority in respect of extorionate credit Secured creditor in liquidation Distribution of

3 Dissolution of corporate IVFAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS55. Fast track corporation INSOLVENCY resolution Time period for completion of fast track corporate INSOLVENCY resolution Manner of initiating fast track corporate INSOLVENCY resolution Applicability of Chapter II to this VVOLUNTARY LIQUIDATION59. Voluntary liquidation of corporate VIADJUDICATING AUTHORITY FOR CORPORATE PERSONS60. Adjudicating Authority for corporate Appeals and Appellate (iii)62. Appeal to Supreme Civil court not to have Expeditious disposal of Fraudulent or malicious intiation of Fraudulent trading or wrongful Proceedings under section VIIOFFENCES AND PENALTIES68.

4 Punishment for concealment of Punishment for transactions defrauding Punishment for misconduct in course of corporate INSOLVENCY resolution Punishment for falsification of books of corporate Punishment for wilful and material omissions from statements relating to affairs ofcorporate Punishment for false representations to Punishment for contravention of moratorium or the resolution Punishment for false information furnished in Punishement for non-disclosure of dispute or repayment of debt by Punishment for providing false information in application made by corporate IIIINSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNER-SHIP FIRMSCHAPTER IPREMILINARY78.

5 IIFRESH START PROCESS80. Eligibility for making an Application for fresh start Appointment of resolution Examination of application by resolution Admission ore rejection of application by Adjudicating Effect of admission of Objections by creditor and their examination by resolution Application against decision of resolution General duties of Replacement of resolution Directions for compliances of restrictions, Revocation of order admitting Discharge Standard of (iv)CHAPTER IIIINSOLVENCY PRESOLUTION PROCESS94. Application by debtor to initiate INSOLVENCY resolution Application by creditor to initiate INSOLVENCY resolution Appointment of resolution Replacement of resolution Submission of report by resolution or rejection of notice and claims form of claims by of list of of resolution professional on repayment of meeting of of meeting of Voting rights in meeting of of secured creditors in relations to repayment of repayment plan by of meeting of creditors on repayment of decisions taken at meeting of of Adjudicating Authority on repayment Effect of order of Adjudicating Authority on repayment and supervision of repayment of repayment plan

6 Coming to end of IVBANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP for by by of of INSOLVENCY professional as BANKRUPTCY Validity of BANKRUPTCY Effect of BANKRUPTCY of financial notice inviting claims from of of list of of meeting of of meeting of Voting rights of (v) and distribution of estate of of of of on or recall of BANKRUPTCY of of BANKRUPTCY of BANKRUPTCY by BANKRUPTCY Vacancy in office of BANKRUPTCY of BANKRUPTCY VADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE of BANKRUPTCY of bankrupt towards BANKRUPTCY of BANKRUPTCY powers of BANKRUPTCY of creditors for certain Vesting of estate of bankrupt in BANKRUPTCY of of property and documents to BANKRUPTCY of control by BANKRUPTCY on disposition of property of property of to disclaim onerous of against disclaimed Effect of credit under of proceedings on death of of estate of deceased of of debt by

7 Secured Mutual credit and of interim of of of payment of (vi)CHAPTER VIADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP Authority for individuals and partnership court not to have to Debt Recovery Appellate to Supreme disposal of VIIOFFENCES AND PENAL for false information, etc., by creditor in INSOLVENCY for contravention of for false information, concealment, etc., by for certain RT I VREGULATION OF INSOLVENCY PROFESSIONAL, AGENCIES ANDINFORMATION UTILITIESCHAPTER ITHE INSOLVENCY AND BANKRUPTCY BOARD OF and incorporation of of of member from of of not to participate in meetings in certain Vacancies, etc., not to invalidate proceedings of Board, Officers and employees to designate financial sector IIPOWERS AND FUNCTIONS OF THE and functions of of advisory committee, executive committee or other of IIIINSOLVENCY PROFESSIONAL AGENCIES199.

8 No person to function as INSOLVENCY professional agency without valid certificateof governing registration of INSOLVENCY professional of INSOLVENCY professional to National Company Law Appellate Board of INSOLVENCY professional of INSOLVENCY professional professional to make (vii)CHAPTER IVINSOLVENCY and registered persons to act as INSOLVENCY of INSOLVENCY and obligations of INSOLVENCY VINFORMATION UTILITIES209. No person to function as information utility without valid certificate of of information to National Company Law Appellate Board of information services, etc., of information of information for submission, etc., of financial and obligations of persons submitting financial VIINSPECTION AND against INSOLVENCY professional agency or its member or of INSOLVENCY professional agency or its member or information cause notice to INSOLVENCY professional agency or its member or of disciplinary VIIFINANCE, ACCOUNTS AND by Central s and and Bankruptey of Central Government to issue of Central Government to supersede of Central Government to notify financial service providers, of.

9 Officers and employees of Board to the public of action taken in good with foreign of request to a country outside India in certain Trial of offences by Special and of this code to override other (viii) to make to make and regulations to be laid before to remove of certain enactments and of Act 9 of of Act 1 of of Act 43 of of Act 52 of of Act 51 of of Act 32 of of Act 54 of of Act 1 of of Act 51 of of Act 6 of of Act 18 of FIRST SCHEDULETHE SECOND SCHEDULETHE THIRD SCHEDULETHE FOURTH SCHEDULETHE FIFTH SCHEDULETHE SIXTH SCHEDULETHE SEVENTH SCHEDULETHE EIGHTH SCHEDULETHE NINTH SCHEDULETHE TENTH SCHEDULETHE ELEVENTH SCHEDULECLAUSES1 THE INSOLVENCY AND BANKRUPTCY code , 2016 ABILLto consolidate and amend the laws relating to reorganisation and INSOLVENCY resolution ofcorporate persons.

10 Partnership firms and individuals in a time bound manner formaximisation of value of assets of such persons, to promote entrepreneurship,availability of credit and balance the interests of all the stakeholders includingalteration in the order of priority of payment of Government dues and to establish anInsolvency and BANKRUPTCY Board of India, and for matters connected therewith orincidental it enacted by Parliament in the Sixty-seventh Year of the Republic of India asfollows: PA RT IPRELIMINARY1. (1) This code may be called the INSOLVENCY and BANKRUPTCY code , 2016 .(2) It extends to the whole of India:Provided that Part III of this code shall not extend to the State of Jammu and Kashmir.