IBC-SECTION-24 TO SECTION-26

Section 24 Meeting of committee of Creditors 

Insolvency And Bankruptcy Code, Section 24 Meeting of Committee of Creditors

IRP has made a constitute a committee of creditors (COC) and within 7 days first meeting held of committee of creditors.

1. All the members of COC may meet electronically to person or such other persons.
2. All the meetings of the COC shall be conduct by RP.
3. RP shall give notice to members, authorised representatives of the COC and to members of the suspended BOD or partners of the Corporate debtors and operational creditors or its other representatives its amount of debts should not be less than 10% of the debts.
4. All the partners/directors/& one representatives of the operation creditors may attend the meetings of COC but not right to vote in such meeting.
5. If the operational creditors its absence of the meetings of COC shall not invalidate proceeding of such meetings.
6. Any creditors who is the members of the COC may appoint an IP. And fees payable to such IP representing any individual creditors will be borne by such creditors.

SECTION 24-CHART

Section 25 Duties of Resolution Professional

Insolvency And Bankruptcy Code, Section 25 Duties of Resolution Professional

The Duties of resolution professional to preserve and protect the assets of the corporate debtor and its also to manage the business operations of the corporate debtors.  

The RP shall take following actions in sub-section(1)

1. All the records/assets of the business of the corporate debtor in the custody and  control of the RP.
2. RP shall exercise the right, represent and act on behalf of the corporate debtor with the third parties.
3. If increase the interim finances of the corporate debtors then subject to the approval of the COC u/s28.
4. RP has a right to appoint accountants,legal or other professionals in the manner as specified by IBBI.
5. RP has maintained an updated list of claims.
6. RP has prepared the information and also to attend the meeting of the COC..

SECTION 25-CHART

Section 25-A Rights and duties of authorized representatives of financial creditors 

Insolvency And Bankruptcy Code, Section 25-A A Right and Duties of authorized representatives of financial creditors

• Authorized representative of financial creditors has a right to participate and voting at a meeting of COC. Before voting authorized representative represents to financial creditors through physical or electronic and also authorized representative shall not act against financial creditors.

• If the authorized representative represents several financial creditors, then he cast his vote in respect of each financial creditors.

• If the financial creditor does not give prior instruction to the authorized representative through physical or electronic then financial creditors have not right against authorized representative. 

• Authorized representative file with the COC any instructions received by way of physical or electronic means from the financial creditor he represents for voting to insure correctness of voting.

SECTION 25A-CHART

Section 26 Application for avoidance of transactions not to affect proceedings

Insolvency And Bankruptcy Code, Section 26 Application for avoidance of transactions not to affect proceedings

Filing of an avoidance application under section 25(2)(J) by RP shall not affect the proceedings of the CIRP.

SECTION 26-CHART