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[Cites 0, Cited by 0] [Section 2A] [Entire Act]

Union of India - Subsection

Section 2A(1) in Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

(1)Where the committee of creditors did not approve a plan under sub-regulations (3) of regulation 39B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall call upon the financial creditors, being financial institutions, to contribute the excess of the liquidation costs over the liquid assets of the corporate debtor, as estimated by him, in proportion to the financial debts owed to them by the corporate debtor.Illustration
Sl. No. Financial creditors Amount of debt due to financial creditors(Rs.) Amount to be contributed towards liquidationcost (Rs.)
(1) (2) (3) (4)
1 Financial institution A 40 04
2 Financial institution B 60 06
3 Non-financial institution A 50 00
4 Non-financial institution B 50 00
Total 200 10
Assume that the excess of liquidation costs over liquid assets is Rs.10, as estimated by the liquidator. Financial creditors will be called upon to contribute, as under: