What Happens After Resolution Plan Is Approved?

What is meant by resolution?

Resolution measures the number of pixels in a digital image or display.

It is defined as width by height, or W x H, where W is the number of horizontal pixels and H is the number of vertical pixels.

For example, the resolution of an HDTV is 1920 x 1080..

What is a resolution plan?

A resolution plan is a comprehensive document, which details the characteristics of a bank and describes the preferred resolution strategy for that bank, including which resolution tools to apply.

Who are resolution applicants?

Resolution Applicant means a person who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the invitation made under clause (h) of sub-section (2) of Section 25. No changes to the IBC Ordinance have been made.

Who approves resolution plan?

Section 31 of the Code Approval of the plan If the AA is satisfied that the resolution plan as approved by the committee of creditors as per terms of Section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, including the Central …

What is insolvency resolution plan?

An Insolvency Resolution Plan for any CD is a unique combination of financial, legal, management and technical features which would provide a reasonable assurance of sustainable viability over the period of recovery from internal or external stresses.

Can a Promoter submit a resolution plan?

According to the amendments, especially newly inserted Sec. 29A in the Code vide Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017, a person (including promoter) cannot submit Resolution Plan if such person or any other person acting jointly with such person is: Adjudged Insolvent.

What is resolution plan in IBC?

(1-A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor. a. Status of workmen (if any) and compliance with respect to labour laws. b.

When can Cirp be initiated?

After the completion of threshold of 10 days from the delivery of the Demand Notice and no reply has been given by the Corporate Debtor on the occurrence of default, the Operational Creditor can file an application to initiate CIRP against the Corporate Debtor under Section 9 of IBC with the prescribed fees i.e. two …

When can corporate insolvency resolution process be initiated?

(1) A financial creditor either by itself or jointly with 1[other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government] may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating …

Who is ineligible to be a resolution applicant?

Therefore, any company (including the promoters/persons in the management of or control of such company) which has its account classified as NPA for last 1 year will not be able to file a resolution plan however, the Code provides for a carve out that such person shall be eligible to submit the resolution plan if such …

What is a recovery and resolution plan?

The term refers to planning by a financial institution and the authorities for the eventuality the firm suffers life-threatening losses. The standards state each firm should maintain a recovery plan that spells out what the management could do to keep the firm solvent. …

Can a financial creditor be a resolution applicant?

The resolution plan which is approved by the committee of creditors is submitted to the NCLT for approval. … As such, a resolution applicant could have been any person – a creditor, a promoter, a guarantor, a prospective investor, an employee, or any other person.

What is a bank resolution plan?

A resolution. plan is a plan for liquidating, reorganizing, recapitalizing or otherwise resolving. a systemically important financial institution (“SIFI”) that has reached the point. of insolvency, non-viability or failure.

Who Cannot be a resolution applicant?

(c) A person shall not be eligible to submit a resolution plan, if such person, or any other person acting jointly or in concert with such person at the time of submission of the resolution plan has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is …

What is the point of resolution?

The resolution is often used to express the body’s approval or disapproval of something which they cannot otherwise vote on, due to the matter being handled by another jurisdiction, or being protected by a constitution.

What is a bank resolution letter?

The banking resolution document is drafted and adopted by a company’s members or Board of Directors to define the relationship, responsibilities and privileges that the members or directors maintain with respect to the company’s banking needs. … It is provided to the bank and then held internally within the company.

Who can initiate proceedings under IBC?

Initiation of Insolvency Proceedings. Section 6 of the Code provides that a financial creditor, operational creditor, or a corporate debtor itself can initiate insolvency proceedings upon any default made by the corporate debtor.

What is the amount of default when can Cirp be initiated?

Rupees Five LakhWhen can CIRP be initiated: A The minimum amount of default is Rupees Five Lakh or such higher amount which shall not exceed Rupees Two Crore. shall not exceed Rupees One Crore.