Section 2B in Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016
2B. Compromise or arrangement.
(1)Where a compromise or arrangement is proposed under section 230 of the Companies Act, 2013 (18 of 2013), it shall be completed within ninety days of the order of liquidation under sub-sections (1) and (4) of section 33.[Provided that a person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor, shall not be a party in any manner to such compromise or arrangement.] [Inserted by Notification No. IBBI/2019-20/GN/REG053, dated 6.01.2020 (w.e.f. 15.12.2016).](2)The time taken on compromise or arrangement, not exceeding ninety days, shall not be included in the liquidation period.(3)Any cost incurred by the liquidator in relation to compromise or arrangement shall be borne by the corporate debtor, where such compromise or arrangement is sanctioned by the Tribunal under sub-section (6) of section 230:Provided that such cost shall be borne by the parties who proposed compromise or arrangement, where such compromise or arrangement is not sanctioned by the Tribunal under sub-section (6) of section 230.]
