APPLICATION TO INITIATE PIRP- SECTION 54C
Where a CD is eligible under Section 54A, the CD may then file an Application before the AA for initiation of PIRP while furnishing Declarations, Resolutions and other documents as under Section 54 along with the Application to initiate PIRP accompanied with as may be prescribed.
The AA shall admit or reject such Application within 14 days of receipt of such Application and shall give Notice to the Applicant to rectify defect, if any within 7 days from date of receipt of the Notice. The commencement of PIRP shall be from the date of admission of the Application by the AA.
TIME LIMIT FOR COMPLETION OF PIRP- SECTION 54D
The PIRP is to be completed within a period of 120 days from the date of commencement.
The Resolution Plan as approved by the Committee of Creditors (“CoC”) is to be submitted by the RP within 90 days from the date of commencement of PIRP. When a Resolution Plan is not approved by the CoC, the RP shall file an Application for termination of PIRP after the expiry of 90 days period.
DECLARATION OF MORATORIUM AND PUBLIC ANNOUNCEMENT DURING PIRP- SECTION 54E
Moratorium will be declared for the purpose as mentioned under Section 14 of the IBC.
Public Announcement of initiation of PIRP is to be made immediately after appointment of the RP for the purpose of PIRP.
Effect of Moratorium: From date of commencement of PIRP till the PIRP comes to an end.
DUTIES AND POWERS OF RESOLUTION PROFESSIONAL DURING PIRP- SECTION 54F
Duties of the RP- The RP shall:
Check and confirm the list of claims by the CD under Section 54G; Inform the Creditors regarding their claims that have been confirmed;
Maintain and update the list of claims; Monitor the management of the affairs of the CD;
Constitute the CoC along with conduction and attending meetings; Inform the CoC in case any breach is done by the CD of the obligations laid down by Board of Directors (BoD) or Partners and of Rules and Regulations made;
Prepare the Information Memorandum based on the information submitted under Section 54G;
File Applications for avoidance of transactions under Chapter III/Fraud/Wrongful Trading under Chapter VI.
Powers of the RP
Access to all the books of Accounts, records and information, electronic records available about the CD from any Information Utility; relevant documents available with the Government bodies, Statutory Authority or Accountants of the CD;
Attend the meetings of Members, Board of Directors (“BoD”) or Partners of the CD;
Appoint accountants and legal professionals; Collect all the information with respect to assets, finances and operation of the CD for the purpose of determining the financial position of the CD;
Further, the Financial Institutions, Promoters and other related personnel associated with the CD shall provide assistance to the RP from his date of appointment.
In the part IV, we shall de dealing about list of claims and preliminary information memorandum under Section 54 G of the Code.
For any query or feedback, feel free to connect with rohit.lalwani@amlegals.com or alternatively call on 91-8448548549.
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