Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 0, Cited by 0] [Entire Act]

Union of India - Section

Section 31A in Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

31A. [ Stakeholders' consultation committee. [Inserted by Notification No. IBBI/2019-20/GN/REG047, dated 25.7.2019 (w.e.f. 15.12.2016).]

(1)The liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date,based on the list of stakeholders prepared under regulation 31, to advise him on the matters relating to sale underregulation 32.
(2)The composition of the consultation committee under sub-regulation (1) shall be as shown in the Table below:Table
Class of Stakeholders Description Number of Representatives
(1) (2) (3)
Secured financial creditors, who haverelinquished their security interests under section 52 Where claims of such creditors admitted duringthe liquidation process is less than 50% of liquidation value Number of creditors in the category, subject toa maximum of 2
Where claims of such creditors admitted duringthe liquidation process is at least 50% of liquidation value Number of creditors in the category, subject toa maximum of 4
Unsecured financial creditors Where claims of such creditors admitted duringthe liquidation process is less than 25% of liquidation value Number of creditors in the category, subject toa maximum of 1
Where claims of such creditors admitted duringthe liquidation process is at least 25% of liquidation value Number of creditors in the category, subject toa maximum of 2  
Workmen and employees 1 1
Governments 1 1
Operational creditors other than Workmen,employees and Governments Where claims of such creditors admitted duringthe liquidation process is less than 25% of liquidation value Number of creditors in the category, subject toa maximum of 1
Where claims of such creditors admitted duringthe liquidation process is at least 25% of liquidation value Number of creditors in the category, subject toa maximum of 2
Shareholders or partners, if any   1
(3)The liquidator may facilitate the stakeholders of each class to nominate their representatives for inclusion in the consultation committee.
(4)If the stakeholders of any class fail to nominate their representatives, the required number of stakeholders with the highest claim amount in that class shall be included in the consultation committee.
(5)Subject to the provisions of the Code and these regulations, representatives in the consultation committee shall have access to all relevant records and information as may be required to provide advice to the liquidator under sub-regulation (1).
(6)The liquidator shall convene a meeting of the consultation committee when he considers it necessary and shall convene a meeting of the consultation committee when a request is received from at least fifty-one percent of representatives in the consultation committee.
(7)The liquidator shall chair the meetings of consultation committee and record deliberations of the meeting.
(8)The liquidator shall place the recommendation of committee of creditors made under sub-regulation (1) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, before the consultation committee for its information.
(9)The consultation committee shall advise the liquidator, by a vote of not less than sixty-six percent of the representatives of the consultation committee, present and voting.
(10)The advice of the consultation committee shall not be binding on the liquidator:Provided that where the liquidator takes a decision different from the advice given by the consultation committee, he shall record the reasons for the same in writing.]