Genesis of th e C ode Multiple laws – multiple fora - PowerPoint Presentation

1. Genesis ofthe CodeMultiple laws – multiple foraLack of holistic remedyInsolvency resolution framework for Individuals stagnant for over 100 years!The 1861 Indian High Courts Act led to the setting up of the High Court system in place of the Presidency towns Supreme Courts, which also has jurisdiction over insolvencyThe Presidency Towns Insolvency Act, 1909, The Provincial Insolvency Act, 1920, Framework for resolution of Corporate bankruptcyCompanies Act, 1956The Micro, Small and Medium Enterprise Development Act, 2006, The SARFAESI Act, 2002The RDDBFI Act, 1993SICA-1985 (BIFR)Informal framework (prominently based on RBI Guidelines)Corporate Debt RestructuringJoint Lenders ForumStrategic Debt RestructuringS4A Sustainable Structuring of Stressed Assets

2. DemographicsNCLT admitted cases by Applicant-CIRP- ongoingTotal- 678IPs Registered with IPAsIIIICAI (ICAI)- 1072ICAIIPA (ICSI)- 1080ICAIIPA (ICAI-CMA)- 149IPE- 76NCLT admitted 192 voluntary liquidation casesNCLT admitted 97 voluntary liquidation cases

3. Technical understanding requirement to act as IPs Responsibility as IRPResponsibility as RPAct as CEO & MD of the corporate to maintain gong concern status and momentum. Need to arrange interim Finance, if required.. Collect all information relating to the assets, finances and operations of the corporate debtor for past 2 years.Assess & segregate the Liability of Financial & Operational CreditorsIdentify Related Party, Undervalue, Erroneous, Preferred transactions, Prepare information memorandumAct as CEO & MD of the corporate to maintain gong concern status and momentum. Need to arrange interim Finance, if required.. Take concurrence from COC on all matters.Identify Related Party, Undervalue, Erroneous, Preferred transactions,Push for Resolution Plan within 120 days from takeover Successfully steer the Resolution plan according to Code guideline.Select the appropriate Resolution plan after following the procedures set in Ordnance of IBC code.

4. Major Challenges Establish Related party transactionAfter a FDD for last 2 years Related PartyTransactions influenced by KMPTransactions between SubsidiariesTransactions between JVsTransactions between AssociatesRefer IAS-24, IAS-28, IFRS-3, 10, 11, 12IndAS- 24, 28, 113, 110, 111, 112 Operational Challenges Managing changed management situation within the corporateManaging inter relationship within external stake holdersManaging Information flows with complete security and integrityManaging Going Concern MomentumsGet the best out of Resolution PackageNot only ends only dealing with Legal issues but a lots besides.Assets Valuation- the latest debate, but new hassle for IPInfrastructure & Talent poolCross Country Insolvency

5. Major Challenges- Resolution Issues in Resolution PlanPrepare most accurate Information Memorandum of information Prepare evaluation matrix for submitted resolution proposalEstablish the credentials of resolution applicants- Section 29AEvaluating resolution plan in view to understand complete stakeholder satisfaction.Convince COC on best plan Convince AA for the best resolution plant and execution modalities.Operational Challenges Cost implication for engaging best professions (valuers, market intelligence, predictive analytics) are high. Get resistance from COC.Developing a Managing Information flows with complete security and integrityManaging Going Concern MomentumsGet the best out of Resolution PackageNot only ends only dealing with Legal issues but a lots besides.

6. Opportunities for CMAs Comparative StrengthStrong process understanding or incline for process understanding. This professional attributes will help to be a successful resolution professionalIndustry working experience will help to stand in challenges like Change management, Man & Situational management. Analytical skills of CMAs will help to identify “what went wrong”Glaring weaknessWeak networking and lack in Team effort.Poor Visibility and lack of prime institute support.Regular updating of skill sets.OpportunitiesIndian banking sector has second highest NPA 17.78% of GDP after Italy with 27.22. Japan has no NPA, USA 2.12%, UK 1.78% Brazil-11.18%After increasing in the rank of ease of doing business, FIIs are interested for setting AMF for stressed assets. CMAs can convert this opportunities with strength after working on the weakness.

7. Operational Debtsa claim in respect of the provision of goods or services including employment or a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authorityCase Matters for referenceThe NCLAT in Pslogix Infrastructure Pvt. Ltd. v. lClCl Bank Ltd has held that a general power of attorney holder is not authorised to present an insolvency application under sections 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 ("IBC")International Road Dynamics South Asia Pvt. Ltd. Vs. Reliance Infrastructure Ltd. Interpreting section 9 of the Code, the Hon’ble NCLAT held: “We are of the view that different claim(s) arising out of different agreements or work order, having different amount and different dates of default, cannot be clubbed together for alleged default of debt, the cause of action is being separate. For the said reasons, we hold that the joint application preferred by appellant under Section 9 is defective, as distinct from incomplete, and, was not maintainable.” Defaultnon-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and is not repaid by the debtor orthe corporate debtor, as the case may be;Minimum DefaultRupees. 1,00,000 OnlyMobilox Innovations Private Limited Vs. Kirusa Software Private Limited-SC- The Hon’ble Supreme Court has settled several issues in this matter. As regards ‘existence of a dispute’ under section 8(2)(a) of the Code, it clarified that what is material is that a dispute must exist in fact. It should not be spurious, hypothetical or illusory and it should not be a patently feeble legal argument or an assertion of fact unsupported by evidence.

8. money borrowed against the payment of interest;any amount raised by acceptance under any acceptance credit facilityany amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;the amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards receivables sold or discounted other than any receivables sold on nonrecourse basis;any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing;any derivative transactionany counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution;Case Matters for referenceFinancial DebtsInnoventive Industries Limited vs. ICICI Bank Limited-SCNikhil Mehta and Sons vs AMR Infrastructure Limited Committed return plan in a real estate transaction should be considered as financial debt and the applicant should be considered as FC.M/s Uttam Galva Steel Limited Financial debt is money borrowed to repay on a future date along with interest. The money is lent for value addition to the money as agreed between parties. Bills of exchange along withinterest would become “financial debt” not “operational debt.”Industrial & Commercial Bank of China vs Alok Industries Financial debt is money borrowed to repay on a future date along with interest. The money is lent for value addition to the money as agreed between parties.Bills of exchange along with interest would become “financial debt” not “operational debt.”

9. Resolution Plan"resolution plan" means a plan proposed by any person for insolvency resolution of the corporate debtor as a going concern in accordance"resolution applicant" means any person who submits a resolution plan to the resolution professional;"resolution professional", for the purposes of this Part, means an insolvency professional appointed to conduct the corporate insolvency resolution process and includes an interim resolution professional; "resolution process cost", amounts due to suppliers of essential goods and services under Regulation 32; amounts due to a person whose rights are prejudicially affected on account of the moratorium imposed under section 14(1)(d); expenses incurred on or by the interim resolution professional to the extent ratified under Regulation 33; expenses incurred on or by the resolution professional fixed under Regulation 34; and other costs directly relating to the corporate insolvency resolution process and approved by the committee.

10. A resolution plan may provide for the measures required for implementing it, including but not limited to the following- 37 of the Regulation.(a) transfer of all or part of the assets of the corporate debtor to one or more persons; (b) sale of all or part of the assets whether subject to any security interest or not; (c) the substantial acquisition of shares of the corporate debtor, or the merger or consolidation of the corporate debtor with one or more persons; (d) satisfaction or modification of any security interest; (e) curing or waiving of any breach of the terms of any debt due from the corporate debtor; (f) reduction in the amount payable to the creditors; (g) extension of a maturity date or a change in interest rate or other terms of a debt due from the corporate debtor; (h) amendment of the constitutional documents of the corporate debtor; (i) issuance of securities of the corporate debtor, for cash, property, securities, or in exchange for claims or interests, or other appropriate purpose; and (j) obtaining necessary approvals from the Central and State Governments and other authorities.

11. Mandatory contents of the resolution plan.- Regulation 38 (1) A resolution plan shall identify specific sources of funds that will be used to pay the - (a) insolvency resolution process costs and provide that the insolvency resolution process costs will be paid in priority to any other creditor; (b) liquidation value due to operational creditors and provide for such payment in priority to any financial creditor which shall in any event be made before the expiry of thirty days after the approval of a resolution plan by the Adjudicating Authority; and (c) liquidation value due to dissenting financial creditors and provide that such payment is made before any recoveries are made by the financial creditors who voted in favour of the resolution plan. A resolution plan shall provide: (a) the term of the plan and its implementation schedule; (b) the management and control of the business of the corporate debtor during its term; and (c) adequate means for supervising its implementation.

12. A resolution plan shall contain details of the resolution applicant and other connected persons ‘details’ shall include the following in respect of the resolution applicant and other connected person, namely:- (a) identity; (b) conviction for any offence , if any, during the preceding five years; (c) criminal proceedings pending, if any; (d) disqualification, if any, under Companies Act, 2013, to act as a director; (e) identification as a wilful defaulter, if any, by any bank or financial institution or consortium thereof in accordance with the guidelines of the Reserve Bank of India; (f) debarment, if any, from accessing to, or trading in, securities markets under any order or directions of the Securities and Exchange Board of India,; and (g) transactions, if any, with the corporate debtor in the preceding two years.”; (ii) the expression ‘connected persons’ means- persons who are promoters or in the management or control of the resolution applicant; persons who will be promoters or in management or control of the business the corporate debtor during the implementation of the resolution plan; holding company, subsidiary company, associate company and related party of the persons referred to in items (a) and (b) The resolution professional shall submit to the committee all resolution plans which comply with the requirements of the Code and regulations made thereunder along with the details of following preferential transactions under section 43; undervalued transactions under section 45; extortionate credit transactions under section 50; and fraudulent transactions under section 66, and the orders, if any, of the adjudicating authority in respect of such transactions.”.

13. IBC guides for winding up, liquidation and dissolutionSection 2(94A) of the Companies Act 2013 defines “winding up”- introduced by section 255 schedule XI of the IBC 2016, briefly

14. Quick idea of global insolvency regimesGlobal insolvency regimes may be classed intoPro-debtor jurisdictionsPro-creditor jurisdictionsIndifferent, or unclearEnacted in countriesUSA, France, UK, and other commonwealth countriesIslamic countries, and until recently, China passed a law in 2006Indicators of a pro creditor stance of a jurisdiction- identical to Indian Scenario The scope and efficiency, in bankruptcy, of security and title financing (such as retention of title, factoring and financial leasing);Insolvency set-off;Corporate rehabilitation statutes;Ownership of assets in the possession of the debtor (trust, tracing);Preferential transfers;Contract and lease rescission.Based on Philip Wood’s write up

15. Why …..CODE….. not an…… ACT ??A "Code", as per Black’s law dictionary is, “A Collection or Compendium of Laws”Systematic and comprehensive compilation of laws, rules and regulations that are consolidated and classified for a particular subject.Codes of IndiaThe Indian Penal Code 1860The Code of Civil Procedure 1908The Code of Criminal Procedure 1860The insolvency and Bankruptcy Code 2016Companies (excluding BSFI) LLP Partnership & Individual The IBC Codes Applies to……Other body incorporated

16. Journey towards the CodeCommittees on bankruptcy reforms in India196426th Report of Law Commission on Insolvency Laws, recommended consolidation of extant two personal insolvency laws into one.198119911998Tiwari Committee, led to enactment of SICA, became an Act in 1985Narasimha Committee-1, led to enactment of the RDDBFI Act, 1993Narasimha Committee 2, led to enactment of the SARFAESI Act, 200219992001200520132014Justice Eradi Committee. Recommended amendment in Companies (Amendment) Act, 2002, proposed setting up of NCLT for rehabilitation of sick companies –but never enforcedL. N. Mitra Committee, First proposed a Comprehensive bankruptcy codeIrani Committee, made aamendments to RDDBFI and SARFAESIFinancial Sector Legislative Reforms Commission, prepared a draft on Indian Financial Code includes a for resolving distressed financial firms.The Bankruptcy Law Reform Committee (BLRC) under the Chairmanship of Mr. T.K. Viswanathan, led to The Insolvency and Bankruptcy Bill, 2015, received the assent of the President on 28th May 2016

17. The IBC does not apply to…….Part II of the code pertaining to insolvency to Individuals & Firms – does not apply to State Jammu & Kashmir Part II of the code pertaining to insolvency code – does not apply to Financial Service providersFor MFIs, NBFCs and financial service providers the Ministry of Finance has released draft of “The Financial Resolution and Deposit Insurance Bill, 2016”.Cabinet approves proposal to introduce the Financial Resolution and Deposit Insurance Bill 2017- ref- Press Information Bureau Government of India - The Financial Resolution and Deposit Insurance Bill.docxThe IBC-2016 Applies for……...InsolvencyLiquidation Voluntary LiquidationBankruptcyFresh Start process General Understanding.docx

18. Acts repealed by the CodeImpact of the IBC 2016Presidency Towns Insolvency Act, 1909Provincial Insolvency Act, 1920BIFR and SICA go off completelyCorporate resolutions comes under NCLTTimelines under the new law – entire process of resolution to be over in 180 to max 270daysDebtors under banker-driven restructuring also go for NCLT/DRT resolution –In view of mandatory timelines, the case may reach bankruptcy

19. Impact of the IBC 2016Companies and guarantors can be both brought under a common forum – NCLT/DRTWhile borrowers may file resolution applications seeking moratorium, but borrower will have to face the threat of liquidation/bankruptcy ;Accelerating provisioning – faster transition into a case of loss assets.Brings greater financial disciplineCreditors have an upper hand in resolution plansIf revival does not work out, entity to mandatorily go into liquidation

20. The Finance Bill, 2017Made the amendments , in turn, provide for amendments to infavour of the CodeThe Indian Partnership Act, 1932 The Central Excise Act, 1944The Income-tax Act, 1961The Customs Act, 1962The Recovery of Debts due to Banks and Financial Institutions Act, 1993The Finance Act, 1994The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002The Sick Industrial Companies (Special Provisions) Repeal Act, 2003The Payment and Settlement Systems Act, 2007The Limited Liability Partnership Act, 2008The Companies Act, 2013

21. the CodeEco-System of IBCInsolvency and Bankruptcy Board of India (IBBI)IBBI – apex body for promoting transparency & governance in the administration of the Code; will be involved in setting up the infrastructure and accrediting IPs & Ius.IUs - centralized repository of financial and credit information of borrowers; would validate the information and claims of creditors vis-à-vis borrowers, as neededIPAs - professional bodies registered by the Board to promote and regulate the insolvency profession; these bodies will enrol Ips-IPs - licensed professionals regulated by the IBBI; will conduct resolution process; to act as Liquidator; appointed by creditors and will assume the powers of suspended board of directors NationalAA- would be the NCLT for corporate insolvency; to entertain or dispose any insolvency application, approve/reject resolution plans, decide in respect of claims or matters of law/facts thereofCoCs - consists of financial creditors who will appoint and supervise actions of IPs; need to approve the resolution planNational Company Law Tribunal (Adjudicating Authority)IPAsIUsIPsCOCsInsolvent unit

22. Framework of the Code5 Parts, 7 Chapters in Part- II, III, IV255 Sections & 11 Schedules (245 to 255) IBC, 2016 – Analysing the 5 PartsPART-I-PRELIMINARY - 1Chapter –Section 1 - 3PART IICIRP & LIQUIDATION7 Chapters - Sections 4-77Section 5 definitionsPart III IIRP& BANKRUPCY7 ChaptersSection 78-187Section 79 definitionsPart IVREGULATION OF IPA & IU 7 ChaptersSection 188-223Part VMISCELLANEOUSSection 224-255(Section 245- 255 enablesAmendments in other statutes, 11 legislations

23. the CodeDeals with

24. Part II of IBC 2016 ( S 4 to 77)- CIRP & Liquidation of Corporate personC I Preliminary S 4 & 5C II Corporate Insolvency Resolution Process S 6 to 32C III Liquidation Process S 33 to 54C IV Fast Track Corporate Insolvency Resolution Process S 55 to 58C V Voluntary Liquidation of Corporate Persons S 59C VI Adjudicating Authority for Corporate PersonsC VII Offences and PenaltiesCode (Act)Rules & Regulations- framed by IBBIThe Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (w.e.f. 01.12.2016). Specifies the application forms for filing the matters in AA- form 1 to form 6 Insolvency and Bankruptcy Board of India (Insolvency Resolution Process For Corporate Persons) Regulations, 2016. 3rd Amendment. 7th Nov. 2017) Insolvency and Bankruptcy Board of India (Voluntary Liquidation process) Regulations, 2017 3rd Amendment. 7th Nov. 2017) The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 (w.e.f. 15th June, 2017) 3rd Amendment. 7th Nov. 2017)

25. What is 'Insolvency’Insolvency is when an organization, or individual, can no longer meet its financial obligations with its lender or lenders as debts become due. Before an insolvent company, or person, gets involved in insolvency proceedings, it will likely be involved in informal arrangements with creditors, such as making alternative payment arrangements. Insolvency can arise from poor cash management, a reduction in cash inflow forecasts or from an increase in expenses.Read more: http://www.investopidia.com In legal terminology, the situation where the liabilities of a person or firm exceed its assets. In practice, however, insolvency is the situation where an entity cannot raise enough cash to meet its obligations, or to pay debts as they become due for payment. Properly called technical insolvency, it may occur even when the value of an entity's total assets exceeds its total liabilities. Mere insolvency does not afford enough ground for lenders to petition for involuntary bankruptcy of the borrower, or force a liquidation of his or her assets.Read more: http://www.businessdictionary.com/definition/insolvency.html General Understanding.docx

26. CIRP is a 360D ApproachWho can TriggerFC- Financial Creditors- any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to….CD/CA- corporate debtor; ora member or partner of the corporate debtor who is authorised to make an application for the corporate insolvency resolution process under the constitutional document of the corporate debtor; oran individual who is in charge of managing the operations and resources of the corporate debtor; ora person who has the control and supervision over the financial affairs of the corporate debtorOC- a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred…Mandatory Time for CIRP-180 days with one time maximum extension of 90 days. Total 270 days

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28. The Codeon the groundSource www.ibbi.gov.in data dated 22nd Nov 2017, 397

29. Implementation Hitches of the CodeIBC was approved by both Houses of the Parliament and received the presidential assent in May 2016. It was made operational from 1 December 2016. Everyone involved has been surprised with the speed and commitment with which it has moved forward in the last 12–18 months. IBC is often touted as the second most important legislative reform (after GST) that the incumbent Government has undertaken, as it is expected to resolveThe NPA problem, make the exit process easier for investors, attract fresh capital and foreign investors, channelize capital to more productive assets and give a fillip to India’s ease of doing business ranking. While the new Code elicited praises and excitement from market participants, it also led to concerns regarding the readiness of the infrastructure for proper implementation.The following is a point-of-view onthe top 10 concerns raised at the beginning of the journey and also how the market seems to be developing. These are our views and understanding of the on-ground situation and are purely based on our experience in the last few months and interactions with other IPs, lawyers, bankers, creditors, promoters and various other stakeholders involvedConcernsRemarksConstitutional Validity of the CodeIBC is a transformational reform in many ways and looks to make some very important structural changes. Many concerns were raised initially around the constitutional validity of some of the provisions of the Code. Essar Steel filed a petition in Gujarat High Court Challenging Reserve Bank of India’s decision to refer it to the NCLT to start CIRP. Similarly, multiple cases/appeals are filled against the applications filed for CIRP; however, no appeal has significantly impacted the CIRP process, once initiated. In the first case admitted under IBC, Innovative vs. ICICI Bank, a writ petition was filed challenging the constitutional validity of section 4 to section 32 of the Code. However, NCLAT decided that the provisions of the Code shall have effect notwithstanding the provisions of any other law for the time being in force. The Innovative matter is currently. Presentation 2.pptxThe NCLT may not be able to handle plethora of proceedings under IBCThe NCLT may not be able to handle plethora of proceedings under IBC. The NCLT was constituted on 1 June 2016 with 10 benches and one principal bench. A major challenge foreseen for the Code was the tidal flow of cases to the NCLT. In addition to new cases filed for resolution under IBC, there was a significant backlog of cases that were transferred from CLB. Also, winding up cases with high courts, corporate recovery cases with the debt recovery tribunals (DRTs) and rehabilitation cases with the BIFR were transferred to the NCLT. We understand that as of now ~ 1,540 cases are filed with the NCLT under IBC, of which ~ 299 are admitted, and we understand that the NCLT has coped well with the workload. The NCLT would continue to play a very critical role in the IBC ecosystem as more complex filings happen over the next few months. We also understand that, discussions are already onto increase the number of benches and change single-member benches to double-member

30. ConcernsRemarksRole of RegulatorIBBI has a critical role in holding thee tire ecosystem of IBC together and making sure the Code is moving forward in the right direction. It was established on 1 October 2016 and has already made significant progress in setting up the IPA, conducting exams to registers IPs and issuing multiple regulations to support the smooth implementation of the Code. IBBI has been at the forefront in building capacity, educating the market and proactively supporting the implementation of the Code. However, the job has not been easy and the expectations are high. Looking at the role played by the regulator in matured markets, we believe IBBI must continue to provide a lead role in a smooth implementation of the Code over the next few years.Stringent Timelines provided in the CodeOne of the hallmark of IBC is the strict time-bound resolution process it proposes. Erstwhile insolvency laws and regulations were not very effective in terms of standing by the timelines specified. The specified time limits for resolution under IBC is a breath of fresh air to the creditors but at the same time, is considered an uphill task to achieve. There have been deviations in a few cases from the 14-day timeline for the NCLT to admit or reject a case. NCLAT in the case of J K Jute Mills Company Limited. stated that the 14-day timeline for the NCLT was not mandatory. However, other procedural timelines, for example, for public announcement, have been broadly adhered to. The real test for IBC timelines would be to get cases resolved within a period of 180/270 days with all necessary approvals.No Information Utilities is in placeIn the IBC design, the IU enables quicker initiation of cases by providing access to irrefutable and transparent evidence of default. In the absence of IUs, initiating a case as well as forming the CoC will take longer and be more challenging than envisaged. This in turn will make it difficult to meet the 180-day timeline. IBBI notified Information Utilities Regulations, effective from 1 April 2017. The regulations provide for a framework and technical standards for registration and regulation of IUs. National E-Governance Services Limited has been appointed as IU on 27th Sep 2017.Speed of decision making by COC The CoC is a key decision making bodyin every CIRP. The speed of decision making at the CoC should match the pace at which the Code has progressed. Banks are in the process of developing internal guidelines & decision matrices to enable the attendees of CoC to have efficient decisions in time. The speed of CoC would also depend upon the expertise of the IP. The IP should provide relevant information before time to CoC members, to help them take internal approvals and come better prepared for CoC voting.

31. ConcernsRemarksOCs misusing the intent of the CodeSince the trigger of the Code is a default of only INR1 lakh, there were concerns regarding frivolous fillings by OCs. Out of the ~ 299 cases admitted by the NCLT, ~ 50% have been initiated by OCs. Also, most of the cases withdrawn from the total of ~1,000 filed, are related to cases where the corporate debtor and OC make an out-of-court settlement. This has resulted in the use of IBC as a mechanism for recovery instead of resolution. However, this is also driven by lack of other remedies available to OCs following the introduction of the Code Better understanding of the position of OCs under liquidation waterfall and the costs involved as anAvailability of IPsIPs form the backbone of the Code. However, with limited guidance and significant liabilities, there were initially many apprehensions around professionals coming forward to take up the role of IP. Their role requires a fine balancing act, given that they are in charge of managing the debtor company and are accountable to the CoC and the adjudicating authority for their actions. Equally important are and there are already ~ 1095 IPs registered with more than 10 years of professional experience. Only ~ 299 cases have been admitted untill now and the outcome of most of them would only be tested in the next few months, hence most of the registered IPs still do not have practical experience of successfully running and closing CIRP. Therefore, while the supply side concern has been addressed, the jury is still out on the quality and performance of IPs. Personal qualities, such as integrity and independence. Fortunately, professionals have reacted very positively toward the opportunityPushback from the promoters/ managements. Transition from “Debtors in possession to creditors in control” would be challenging Taking control of the corporate debtor and suspending the powers of the BoD (promoters) has been seen a major challenge in the implementation of the Code. Based on our experience and discussion with other IPs, if the communication is kept clear and transparent with the promoters and other stakeholders, promoters are largely co-operating with the process. Promoters genuinely interested in the revival of enterprises. At the same time, there have been sporadic instances of physical threats to IPs from promoters and promoters threatening to sue IPs for loss of a contract. CIRP has to be seen and communicated by IP as a resolution process for the benefit of all stakeholders. The experience and knowledge of the BoD (promoters) should be actively leveraged by IP, to maintain a going concern and cause minimal disruption to operations while a resolution is being worked out to maximize return for all stakeholders. would not see their displacement as threat but as an opportunity to focus on putting together a resolution plan.

32. Who to become an IP Applicable for the period 1st July, 2017 to 31st December, 2017…….. Syllabus_revised_LIE_2.pdfApplicable for the period 1st Jan, 2018 to 31st Mar, 2018…….. Exam Syllabus-Jan-2018.docxApplicable for the period 1st April, 2018 to 30th June, 2018…….Proposed change in examination pattern- LIE_consultation_paper (3).pdf

33. Examination Resources Bare Acts- www.ibbi.gov.inMock Papers from www.icsiipa.comE-Reources from www.iiipaicai.in Books from Taxman- IBC codeCase Laws from IBC practical cases-ICSI publicationsGeneral Laws from ICSI intermediate study materialsCase laws from www.ibbi.gov.inFinance and accounts- CMA final study materialsMiscellaneous topics NCERT- Civics- class X & IXPass Mark- 60Total Marks 100Questions-87Negative Marks-25%Test time- 2 hours

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