Section 38 in Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
38. Mandatory contents of the resolution plan.
- [(1) The amount payable under a resolution plan -(a)to the operational creditors shall be paid in priority over financial creditors; and(b)to the financial creditors, who have a right to vote under sub-section (2) of section 21 and did not vote in favour of the resolution plan, shall be paid in priority over financial creditors who voted in favour of the plan.](1A)[ A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor.] [Inserted by Notification No. IBBI/2017-18/GN/REG018, dated 5.10.2017, (w.e.f. 31.11.2016).](1B)[ A resolution plan shall include a statement giving details if the resolution applicant or any of its related parties has failed to implement or contributed to the failure of implementation of any other resolution plan approved by the Adjudicating Authority at any time in the past.] [Inserted by Notification No. IBBI/2019-20/GN/REG040, dated 24.1.2019 (w.e.f. 30.11.2016).](2)A resolution plan shall provide:(a)the term of the plan and its implementation schedule;(b)the management and control of the business of the corporate debtor during its term; and(c)adequate means for supervising its implementation.(3)[ A resolution plan shall demonstrate that -(a)it addresses the cause of default;(b)it is feasible and viable;(c)it has provisions for its effective implementation;(d)it has provisions for approvals required and the timeline for the same; and(e)the resolution applicant has the capability to implement the resolution plan.]
