AA for CPs (Sec. 60 – 67)

“(1) The Adjudicating Authority, in relation to insolvency resolution and liquidation for
corporate persons including corporate debtors and personal guarantors thereof shall be the
National Company Law Tribunal having territorial jurisdiction over the place where the
registered office of a corporate person is located.
(2) Without prejudice to sub-section (1) and notwithstanding anything to the contrary
contained in this Code, where a corporate insolvency resolution process or liquidation
proceeding of a corporate debtor is pending before a National Company Law Tribunal, an
application relating to the insolvency resolution or 1
[liquidation or bankruptcy of a corporate
guarantor or personal guarantor, as the case may be, of such corporate debtor] shall be filed before the
National Company Law Tribunal.
(3) An insolvency resolution process or 2
[liquidation or bankruptcy proceeding of a
corporate guarantor or personal guarantor, as the case may be, of the corporate debtor] pending in
any court or tribunal shall stand transferred to the Adjudicating Authority dealing with
insolvency resolution process or liquidation proceeding of such corporate debtor.
(4) The National Company Law Tribunal shall be vested with all the powers of the
Debt Recovery Tribunal as contemplated under Part III of this Code for the purpose of subsection (2).
(5) Notwithstanding anything to the contrary contained in any other law for the time
being in force, the National Company Law Tribunal shall have jurisdiction to entertain or
dispose of –
(a) any application or proceeding by or against the corporate debtor or corporate
person;
(b) any claim made by or against the corporate debtor or corporate person,
including claims by or against any of its subsidiaries situated in India; and
(c) any question of priorities or any question of law or facts, arising out of or in
relation to the insolvency resolution or liquidation proceedings of the corporate debtor
or corporate person under this Code.
(6) Notwithstanding anything contained in the Limitation Act, 1963 or in any other
law for the time being in force, in computing the period of limitation specified for any suit
or application by or against a corporate debtor for which an order of moratorium has been
made under this Part, the period during which such moratorium is in place shall be excluded ” VL Note : –

“(1) Notwithstanding anything to the contrary contained under the Companies Act
2013 (18 of 2013), any person aggrieved by the order of the Adjudicating Authority under
this part may prefer an appeal to the National Company Law Appellate Tribunal.
(2) Every appeal under sub-section (1) shall be filed within thirty days before the
National Company Law Appellate Tribunal:
Provided that the National Company Law Appellate Tribunal may allow an appeal to
be filed after the expiry of the said period of thirty days if it is satisfied that there was
sufficient cause for not filing the appeal but such period shall not exceed fifteen days.
(3) An appeal against an order approving a resolution plan under section 31 may be
filed on the following grounds, namely: –
(i) the approved resolution plan is in contravention of the provisions of any law for
the time being in force;
(ii) there has been material irregularity in exercise of the powers by the
resolution professional during the corporate insolvency resolution
period;
(iii) the debts owed to operational creditors of the corporate debtor have not been
provided for in the resolution plan in the manner specified by the Board;
(iv) the insolvency resolution process costs have not been provided for repayment
in priority to all other debts; or
(v) the resolution plan does not comply with any other criteria specified by the
Board.
(4) An appeal against a liquidation order passed under section 33 may be filed on
grounds of material irregularity or fraud committed in relation to such a liquidation order.” VL Note : –

“(1) Any person aggrieved by an order of the National Company Law Appellate Tribunal
may file an appeal to the Supreme Court on a question of law arising out of such order under
this Code within forty-five days from the date of receipt of such order.
(2) The Supreme Court may, if it is satisfied that a person was prevented by sufficient
cause from filing an appeal within forty-five days, allow the appeal to be filed within a
further period not exceeding fifteen days.” VL Note : –

“No civil court or authority shall have jurisdiction to entertain any suit or proceedings in
respect of any matter on which National Company Law Tribunal or the National Company Law Appellate Tribunal has jurisdiction under this Code. Civil court not to have jurisdiction” VL Note : –

“(1) Where an application is not disposed of or order is not passed within the period
specified in this Code, the National Company Law Tribunal or the National Company Law
Appellate Tribunal, as the case may be, shall record the reasons for not doing so within the
period so specified; and the President of the National Company Law Tribunal or the
Chairperson of the National Company Law Appellate Tribunal, as the case may be, may,
after taking into account the reasons so recorded, extend the period specified in the Act but
not exceeding ten days.
(2) No injunction shall be granted by any court, tribunal or authority in respect of any
action taken, or to be taken, in pursuance of any power conferred on the National Company
Law Tribunal or the National Company Law Appellate Tribunal under this Code.” VL Note : –

“(1) If, any person initiates the insolvency resolution process or liquidation
proceedings fraudulently or with malicious intent for any purpose other than for the
resolution of insolvency, or liquidation, as the case may be, the Adjudicating Authority may
impose upon a such person a penalty which shall not be less than one lakh rupees, but may
extend to one crore rupees.
(2) If, any person initiates voluntary liquidation proceedings with the intent to
defraud any person, the Adjudicating Authority may impose upon such person a penalty
which shall not be less than one lakh rupees but may extend to one crore rupees.” VL Note : –

“(1) If during the corporate insolvency resolution process or a liquidation process, it
is found that any business of the corporate debtor has been carried on with intent to defraud
creditors of the corporate debtor or for any fraudulent purpose, the Adjudicating Authority
may on the application of the resolution professional pass an order that any persons who
were knowingly parties to the carrying on of the business in such manner shall be liable to
make such contributions to the assets of the corporate debtor as it may deem fit.
(2) On an application made by a resolution professional during the corporate insolvency
resolution process, the Adjudicating Authority may by an order direct that a director or
partner of the corporate debtor, as the case may be, shall be liable to make such contribution
to the assets of the corporate debtor as it may deem fit, if-
(a) before the insolvency commencement date, such director or partner knew or
ought to have known that the there was no reasonable prospect of avoiding the
commencement of a corporate insolvency resolution process in respect of such corporate debtor; and
(b) such director or partner did not exercise due diligence in minimising the
potential loss to the creditors of the corporate debtor.
Explanation. – For the purposes of this section a director or partner of the corporate
debtor, as the case may be, shall be deemed to have exercised due diligence if such diligence
was reasonably expected of a person carrying out the same functions as are carried out by
such director or partner, as the case may be, in relation to the corporate debtor. ” VL Note : –

“(1) Where the Adjudicating Authority passes an order under sub-section (1) or subsection (2) of section 66, as the case may be, it may give such further directions as it may
deem appropriate for giving effect to the order, and in particular, the Adjudicating Authority
may—
(a) provide for the liability of any person under the order to be a charge on any debt
or obligation due from the corporate debtor to him, or on any mortgage or charge or any
interest in a mortgage or charge on assets of the corporate debtor held by or vested in
him, or any person on his behalf, or any person claiming as assignee from or through
the person liable or any person acting on his behalf; and
(b) from time to time, make such further directions as may be necessary for
enforcing any charge imposed under this section.
Explanation. – For the purposes of this section, “assignee” includes a person to whom
or in whose favour, by the directions of the person held liable under clause (a) the debt,
obligation, mortgage or charge was created, issued or transferred or the interest created, but
does not include an assignee for valuable consideration given in good faith and without
notice of any of the grounds on which the declaration has been made.
(2) Where the Adjudicating Authority has passed an order under sub-section (1) or
(2) of section 66, as the case may be, in relation to a person who is a creditor of the corporate
debtor, it may, by an order, direct that the whole or any part of any debt owed by the
corporate debtor to that person and any interest thereon shall rank in the order of priority of
payment under section 53 after all other debts owed by the corporate debtor. ” VL Note : –