IBC-SECTION 17 TO SECTION 19

Section 17 Management of affairs of corporate debtor by interim resolution professional.

INSOLVENCY AND BANKRUPTCY CODE SECTION 17 MANAGEMENT OF AFFAIRS OF CORPORATE DEBTOR BY INTERIM RESOLUTION PROFESSIONAL

1. NCLT has appointed an IRP and IRP from the date of the appointment hold or shall vest the management of affairs of corporate debtors.
2. The Powers of Board of directors, Partners of the corporate debtors has suspended and all the powers exercised by IRP.
3. Mangers, officers of the corporate debtors shall report to the IRP then IRP to access the all information and documents or records of the corporate debtors.
4. IRP has given an instruction to the financial institutions for maintaining the accounts of the corporate debtors.
5. IRP vested with the management of the corporate debtors and IRP shall act and execute a work in the names and on the behalf of the corporate debtors.
6. IRP takes such actions on the respect of the  instruction or manners has been provided by the  board (IBBI).
7. IRP have authority to access through electronically all the records, documents, all information from the information utility having financial information of the corporate debtors and IRP has been responsible for complying all the works on the behalf of the corporate debtors under any laws for the time being in force.

SECTION 17 CHART

Section 18 Duties of Interim resolution professional 

INSOLVENCY AND BANKRUPTCY CODE SECTION 18 DUTIES OF INTERIM                RESOLUTION PROFESSIONAL

IRP shall perform the following duties:-

1. IRP Collect all information of the corporate debtors relating to assets, finances and operations and Business/ financial & operational payments for the previous 2 years and also list of assets and liabilities as at the intimation date and such others matters as may be specified for  determining the financial position of the corporate debtors.
2. IRP has Receive and collate all the claims submitted by the creditors.
3. Constitute a committee of creditors refer to section 21.
4. Committee of creditors is appointed an RP and RP has monitored and managed all the assets and operation of the corporate debtors.
5. IRP has collected file information from the information utility, if necessary.
6. Any Assets of the corporate debtors have ownership rights as recorded in the balance sheets/ information utility/ depository of securities and all others records take controls on the custody of the IRP.

SECTION 18 CHART

Section 19 Personnel to extend co-operation to interim resolution professional 

INSOLVENCY AND BANKRUPTCY CODE SECTION 19 PERSONNEL TO EXTEND CO-OPERATION TO INTERIM RESOLUTION PROFESSIONAL

• Promoters or any other person associated with the management of the corporate debtors to assist or corporate to the IRP.

• If doesn’t assist or corporate to the IRP then IRP may make an application to the NCLT for necessary directions. 

• From the date of receiving the application of the NCLT then NCLT shall by an order, such personnel or other person to comply with the instructions to corporate or assist to IRP.

SECTION 19 CHART

INSOLVENCY AND BANKRUPTCY CODE, SECTION 14 TO 16

Section 14 Moratorium

INSOLVENCY AND BANKRUPTCY CODE SECTION 14 MORATORIUM

NCLT shall by order declare moratorium for prohibiting all the following namely :

• Institution of suits or any bodies doers not suits or  proceeding against corporate debtors  including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority within 180 days under corporate insolvency resolution process.

• Corporate debtors does not transferring , encumbering, alienating or disposing off of any of its assets, any legal right or beneficial interest under the CIRP. 

• Corporate debtors does not transfers any assets or enforce any security interest in respect of its property including any action under securitization and reconstruction of financial assets and enforcement of security interest act,2002.

• If property is occupied or possession by corporate debtors then recovery of any property by an owner or lessor.

• Essential goods or service provide to corporate debtors during the moratorium period.

SECTION 14 CHART

Section 15  Public announcement of corporate                    insolvency resolution process.

INSOLVENCY AND BANKRUPTCY CODE SECTION 15 

 Public announcement of corporate insolvency resolution process

NCLT is appointed IRP and IRP is within 3 days from the date of appointment to provided a public announcement.

1. Name & Address of the corporate debtors under CIRP.
2. Name of the authority of financial creditors is incorporated or registred.
3. Last date for submission of claims.
4. IRP vested in the management of the corporate debtors and its responsible for receing a claims.
5. Penalties for misleading claims.
6. CIRP shall be close within 180 days from the date of admission of the application u/s 7,9 or section 10, as the case may be.

SECTION 15 CHART

Section 16 Appointment and tenure of interim resolution professional.

INSOLVENCY AND BANKRUPTCY CODE SECTION 16 Appointment and tenure of interim resolution professional

NCLT shall appoint an IRP within 14 days from the Insolvency commencement date.

Application is made by financial creditors or corporate debtors for CIRP.

RP as proposed respectively in the application under section 7 or section 10 shall be appointed as the IRP, if no disciplinary proceedings are pending against him.

Operational creditors is made an appliocation for CIRP.

1. No proposal for IRP is made then NCLT shall make a reference to the board ( IBBI) for the recommendation of an IP who acts as an IRP.
2. A proposal for an RP as proposed shall be appointed as the IRP, if no disciplinary proceeding are pending against him.

The IBBI has recommended IP acts as IRP within 10 days from the date of receipts of reference from the NCLT.

SECTION 16 CHART