The regulations in exercise of its powers conferred by section 58, 196 and 208 read with section 240 of the Insolvency and bankruptcy Code,2016 is announced by the board.
Some Key points:
- The process from initiating of Insolvency resolution of eligible corporate debtors will be provided by these regulations till its conclusion with approval of the resolution plan by the Adjudicating authority.
- The process shall be completed within a period of 90 days as against 180 days in other case.
- For initiating fast track resolution process, a creditor or a corporate debtor may file an application, along with the proof of existence of default. After this, the Interim Resolution Professional (IRP) is appointed. If the IRP is of the opinion based on the records of corporate debtor, he shall file an application before the expiry of 21 days from the date of his appointment to Adjudicating authority for pass an order to convert the fast track process into a normal corporate insolvency resolution process.
- The relevant section 55 to 58 of the Insolvency and Bankruptcy code, 2016 pertaining to the fast track process has been notified by the ministry of corporate affairs.
- In addition, a small company, a start-up as defined in under clause (85) of section 2 of the companies act, 2013 and notification dated 23 May 2017 of the ministry of commerce and industry respectively.
- As reported in the financial statement of the immediately preceding financial year, an unlisted company with total assets, not exceeding Rs.1 crore.
