TAMIL NADU

GOVERNMENT GAZETTE

PUBLISHED BY AUTHORITY

No. 19]

chennai, WEDNESday, May 12, 2021

Chithirai 29, Saarvari, Thiruvalluvar Aandu – 2052

Part IV—Section 4

Central Acts and Ordinances

[ 7 ]

19-IV-4

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2021

[Price: Rs. 21.60 Paise.

CONTENTS

Pages.

Ordinance :

No. 2 of 2021—The Tribunals Reforms (Rationalisation and Conditions of

Service) Ordinance, 2021.

9-30

No. 3 of 2021—The Insolvency and Bankruptcy Code (Amendment)

Ordinance, 2021.

31-59

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ministry of law and justice

(Legislative Department)

New Delhi, the 4th April 2021 / Chaitra 14, 1943 (Saka).

The following Central Ordinance promulgated by the President of India is hereby

republished for general information:

THE TRIBUNALS REFORMS

(RATIONALISATION AND CONDITIONS OF

SERVICE) ORDINANCE, 2021

NO. 2 OF 2021

Promulgated by the President in the Seventy-Second

Year of the Republic of India.

An Ordinance further to amend the Cinematograph

Act, 1952, the Customs Act, 1962, the Airports Authority

of India Act, 1994, the Trade Marks Act, 1999 and the

Protection of Plant Varieties and Farmers’ Rights Act,

2001 and certain other Acts.

WHEREAS The Tribunal Reforms (Rationalisation

and Conditions of Service) Bill, 2021 has been

introduced in the House of the People on the 13^th day of

February, 2021;

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[Part IV—Sec. 4

AND WHEREAS the aforesaid Bill could not be taken

up for consideration and passing in the House of the

People;

AND WHEREAS Parliament is not in session and

the President is satisfied that circumstances exist which

render it necessary for him to take immediate action;

NOW, THEREFORE, in exercise of the powers

conferred by clause (1) of article 123 of the Constitution,

the President is pleased to promulgate the following

Ordinance:—

CHAPTER I

PRELIMINARY

1.(1) This Ordinance may be called the Tribunals

Reforms (Rationalisation and Conditions of Service)

Ordinance, 2021.

Short title and

commencement.

(2) It shall come into force at once.

Definitions.

2.In this Ordinance, unless the context otherwise

requires,–

(a)

“notified

date”

means

the

date

commencement of this Ordinance;

(b) “Schedule” means the Schedule appended to

this Ordinance;

CHAPTER II

AMENDMENTS TO THE CINEMATOGRAPH ACT, 1952

Amendment of

Act 37 of 1952.

3. In the Cinematograph Act, 1952, —

(a) in section 2, clause (h) shall be omitted;

(b) in section 5C,–

(i) for the word “Tribunal”, at both the

places where it occurs, the words “High Court”

shall be substituted;

(ii) sub-section (2) shall be omitted;

(d) in section 6, the words “or, as the case may be,

decided by the Tribunal (but not including any

proceeding in respect of any matter which is pending

before the Tribunal)” shall be omitted;

(e) in sections 7A and 7C, for the word

“Tribunal”, wherever it occurs, the words “High

Court” shall be substituted;

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(f) in sections 7D, 7E and 7F, the words “the

Tribunal,”, wherever they occur, shall be omitted;

(g) in section 8, in sub-section (2), clauses (h), (i),

(j), and (k) shall be omitted.

CHAPTER III

AMENDMENTS TO THE COPYRIGHT ACT, 1957

Amendment of

Act 14 of 1957.

3. In the Copyright Act, 1957,—

(a) in section 2,––

(i) clause (aa) shall be omitted;

(ii) clause (fa) shall be re-lettered as clause (faa)

and before the clause (faa) as so re-lettered, the

following clause shall be inserted, namely:––

‘(fa) “Commercial Court”, for the purposes of any

State, means a Commercial Court constituted under

section 3, or the Commercial Division of a High

Court constituted under section 4, of the Commercial

Courts Act, 2015;’;

4 of 2016.

(iii) for clause (u), the following clause shall be

substituted, namely:––

‘(u) “prescribed” means,—

(A) in relation to proceedings before a High

Court, prescribed by rules made by the High

Court; and

(B) in other cases, prescribed by rules made

under this Act;’;

(b) in section 6,––

(i) for the words “Appellate Board”, wherever

they occur, the words “Commercial Court” shall be

substituted;

(ii) the words “constituted under section 11 whose

decision thereon shall be final” shall be omitted;

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“AND APPELLATE BOARD” shall be omitted;

(d) sections 11 and 12 shall be omitted;

(e) in sections 19A, 23, 31, 31A, 31B, 31C, 31D, 32,

32A and 33A, for the words “Appellate Board”, wherever

they occur, the words “Commercial Court” shall be

substituted;

(f) in section 50, for the words “Appellate Board”,

wherever they occur, the words “High Court” shall be

substituted;

(g) in section 53A,––

(i) for the words “Appellate Board”, wherever

they occur, the words “Commercial Court” shall be

substituted;

(ii) in sub-section (2), the words “and the

decision of the Appellate Board in this behalf shall

be final” shall be omitted;

(h) in section 54, for the words “Appellate Board”,

the words “Commercial Court” shall be substituted;

(i) for section 72, the following section shall be

substituted, namely:––

“72. (1) Any person aggrieved by any final

decision or order of the Registrar of Copyrights may,

within three months from the date of the order or

decision, appeal to the High Court.

Appeals against

orders

Registrar

Copyrights.

(2) Every such appeal shall be heard by a single

Judge of the High Court:

Provided that any such Judge may, if he so

thinks fit, refer the appeal at any stage of the

proceeding to a Bench of the High Court.

(3) Where an appeal is heard by a single Judge,

a further appeal shall lie to a Bench of the High

Court within three months from the date of decision

or order of the single Judge.

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(4) In calculating the period of three months

provided for an appeal under this section, the time

taken in granting a certified copy of the order or

record of the decision appealed against shall be

excluded.”;

(j) in sections 74 and 75, the words “and the

Appellate Board”, wherever they occur, shall be omitted;

(k) in section 77, the words “and every member of

the Appellate Board” shall be omitted;

(l) in section 78, in sub-section (2),––

(i) clauses (cA) and (ccB) shall be omitted;

(ii) in clause (f), the words “and the Appellate

Board” shall be omitted.

CHAPTER IV

AMENDMENTS TO THE CUSTOMS ACT, 1962

Amendment of

Act 52 of 1962.

5. In the Customs Act, 1962,–

(a) in section 28E, clauses (ba), (f) and (g) shall be

omitted;

(b) in section 28EA, the proviso shall be omitted;

(d) in section 28KA,––

(i) in sub-section (1), for the word “Appellate

Authority”, at both the places where they occur, the

words “High Court” shall be substituted;

(ii) sub-section (2) shall be omitted;

(e) in section 28L, the words “or Appellate

Authority”, wherever they occur, shall be omitted;

(f) in section 28M,––

(i) in the marginal heading, the words “and

Appellate Authority” shall be omitted;

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(ii) sub-section (2) shall be omitted.

CHAPTER V

AMENDMENTS TO THE PATENTS ACT, 1970

Amendment of

Act 39 of 1970.

6. In the Patents Act, 1970,—

(a) in section 2, in sub-section (1),––

(i) clause (a) shall be omitted;

(ii) in clause (u), sub-clause (B) shall be omitted;

(b) in section 52, the words “Appellate Board or”,

wherever they occur, shall be omitted;

(i) the words “the Appellate Board or”, wherever

they occur, shall be omitted;

(ii) the words “as the case may be” shall be

omitted;

(d) in section 59, the words “the Appellate Board or”

shall be omitted;

(e) in section 64, in sub-section (1), the words “by

the Appellate Board” shall be omitted;

(f) in section 71, for the words “Appellate Board”

and “Board”, wherever they occur, the words “High

Court” shall be substituted;

(g) in section 76, the words “or Appellate Board”

shall be omitted;

(h) in section 113,––

(i) in sub-section (1),––

(A) the words “the Appellate Board or”,

wherever they occur, shall be omitted;

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(B) the words “as the case may be” shall be

omitted;

(ii) in sub-section (3), the words “or the Appellate

Board” shall be omitted;

(i) in Chapter XIX, for the Chapter heading, the

Chapter heading “APPEALS” shall be substituted;

(j) sections 116 and 117 shall be omitted;

(k) in section 117A, for the words “Appellate

Board”, wherever they occur, the words “High Court”

shall be substituted;

(l) sections 117B, 117C and 117D shall be omitted;

(m) in section 117E, for the words “Appellate

Board”, wherever they occur, the words “High Court”

shall be substituted;

(n) sections 117F, 117G and 117H shall be omitted;

(o) in section 151,––

(A) in sub-section (1), the words “or the

Appellate Board”, at both the places where they

occur, shall be omitted;

(B) in sub-section (3), for the words “the

Appellate Board or the courts, as the case may be”,

the words “the courts” shall be substituted;

(p) in section 159, in sub-section (2), clauses (xiia),

(xiib) and (xiic) shall be omitted.

CHAPTER VI

AMENDMENTS TO THE AIRPORT AUTHORITY

OF INDIA ACT, 1994

7. In the Airports Authority of India Act, 1994,—

Amendment of

Act 55 of 1994.

(a) in section 28A, clause (e) shall be omitted;

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(b) in section 28E, for the word “Tribunal”, at

both the places where it occurs, the words “Central

Government” shall be substituted;

(d) in section 28K,–––

(i) in sub-section (1),––

(A) for the words “Tribunal in such form as

may be prescribed”, the words “High Court” shall

be substituted;

(B) in the proviso, for the word “Tribunal”, the

words “High Court” shall be substituted;

(ii) sub-sections (2), (3), (4) and (5) shall be

omitted;

(e) section 28L shall be omitted;

(f) in section 28M, the words “or the Tribunal”

shall be omitted;

(g) in section 28N, in sub-section (2), for the word

“Tribunal”, the words “High Court” shall be

substituted;

(h) in section 33, the words “or the Chairperson of

the Tribunal” shall be omitted;

(i) in section 41, in sub-section (2), clauses (gvi),

(gvii), (gviii) and (gix) shall be omitted.

CHAPTER VII

AMENDMENTS TO THE TRADE MARKS

ACT, 1999

Amendment of

Act 47 of 1999.

8. In the Trade Marks Act, 1999,—

(a) in section 2, in sub-section (1), ––

(i) clauses (a), (d), (f), (k), (n), (ze) and (zf)

shall be omitted;

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(ii) for clause (s), the following clause shall be

substituted, namely:––

‘(s) “prescribed” means,—

(i) in relation to proceedings before a High

Court, prescribed by rules made by the High

Court; and

(ii) in other cases, prescribed by rules

made under this Act;’;

(b) in section 10, for the word “tribunal”, the

words “Registrar or the High Court, as the case may

be,” shall be substituted;

words “Registrar or the High Court, as the case may

be,” shall be substituted;

(d) in section 46, in sub-section (3), for the word

“tribunal”, the words “Registrar or the High Court,

as the case may be,” shall be substituted;

(e) in section47, ––

(i) for the words “Appellate Board”, at both

the places where it occurs, the words “High

Court” shall be substituted;

(ii) for the word “tribunal”, wherever it occurs,

the words “Registrar or the High Court, as the

case may be,” shall be substituted;

(f) in section 55, in sub-section (1), for the word

“tribunal”, the words “Registrar or the High Court,

as the case may be,” shall be substituted;

(g) in section 57, ––

(i) for the words “Appellate Board”, wherever it

occurs, the words “High Court” shall be

substituted;

(ii) for the word “tribunal”, wherever it occurs,

the words “Registrar or the High Court, as the case

may be,” shall be substituted;

(h) in section 71, in sub-section (3), for the word

“tribunal”, the words “Registrar or the High Court,

as the case may be,” shall be substituted;

(i) in Chapter XI, for the Chapter heading, the

Chapter heading “APPEALS” shall be substituted;

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(j) sections 83, 84, 85, 86, 87, 88, 89, 89A and 90

shall be omitted;

(k) in section 91,for the words “Appellate

Board”, wherever they occur, the words “High

Court” shall be substituted;

(l) sections 92 and 93 shall be omitted;

(m) for section 94, the following section shall be

substituted, namely:––

Bar to appear

before

Registrar.

“94. On ceasing to hold the office, the erstwhile

Chairperson, Vice-Chairperson or other Members,

shall not appear before the Registrar.”;

(l) sections 95 and 96 shall be omitted;

(m) in section 97, for the words “Appellate

Board”, wherever they occur, the words “High

Court” shall be substituted;

(n) in section 98, for the words “Appellate Board”

and “Board”, wherever they occur, the words “High

Court” shall be substituted;

(o) sections 99 and 100 shall be omitted;

(p) in section 113, ––

(i) for the words “Appellate Board”, at both

the places where they occur, the words “High

Court” shall be substituted;

(ii) for the word “tribunal”, the words

“Registrar or the High Court, as the case may be,”

shall be substituted;

(q) in section 123, the words “and every Member

of the Appellate Board” shall be omitted;

(r) in sections 124 and 125, for the words

“Appellate Board”, wherever they occur, the words

“High Court” shall be substituted;

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(s) in section 130, the words “the Appellate Board

or” shall be omitted;

(t) in section 141, for the words “Appellate

Board”, at both the places where they occur, the

words “High Court” shall be substituted;

(u) in section 144, for the word “tribunal”, the

words “Registrar or the High Court, as the case may

be,” shall be substituted;

(v) in section 157, in sub-section (2),––

(i) clauses (xxxi) and (xxxii) shall be omitted;

(ii) in clause (xxxiii), for the words “Appellate

Board”, the words “High Court” shall be

substituted.

CHAPTER VIII

AMENDMENTS TO THE GEOGRAPHICAL

INDICATIONS OF GOODS (REGISTRATION AND

PROTECTION) ACT, 1999

Amendment of

Act 48 of 1999.

In the Geographical Indications of Goods

(Registration and Protection) Act, 1999,—

(a) in section 2, in sub-section (1), clauses (a)

and (p) shall be omitted;

(b) in section 19, for the word “tribunal”, the

words “Registrar or the High Court, as the case

may be,” shall be substituted;

Appellate Board before which”, the words “before

whom” shall be substituted;

(d) in section 27, ––

(i) for the words “Appellate Board”, wherever

they occur, the words “High Court” shall be

substituted;

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the words “Registrar or the High Court, as the

case may be,” shall be substituted;

(e) in Chapter VII, for the Chapter heading, the

Chapter heading “APPEALS” shall be substituted;

(f) in section 31,––

(i) for the words “Appellate Board”, wherever

they occur, the words “High Court” shall be

substituted;

(ii) sub-section (3) shall be omitted;

(g) sections 32 and 33 shall be omitted;

(h) in sections 34 and 35, for the words “Appellate

Board”, wherever they occur, the words “High

Court” shall be substituted;

(i) section 36 shall be omitted;

(j) in sections 48,––

(i) for the words “Appellate Board”, at both the

places where it occurs, the words “High Court”

shall be substituted;

(ii) for the word “tribunal”, the words

“Registrar or the High Court, as the case may be,”

shall be substituted;

(k) in sections 57 and 58, for the words “Appellate

Board”, wherever they occur, the words “High

Court” shall be substituted;

(l) in section 63, the words “the Appellate Board

or” shall be omitted;

(m) in section 72, for the words “Appellate

Board”, wherever they occur, the words “High

Court” shall be substituted;

(n) in section 75, for the word “tribunal”, the

words “Registrar or the High Court, as the case may

be,” shall be substituted;

(ii) for the word “tribunal”, wherever it occurs,

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(o) in section 87, in sub-section (2), clause (n)

shall be omitted.

CHAPTER IX

AMENDMENTS TO THE PROTECTION OF

PLANT VARIETIES AND FARMERS’ RIGHTS

ACT, 2001

Amendment of

Act 53 of 2001.

10. In the Protection of Plant Varieties and Farmers’

Rights Act, 2001,–

(a) in section 2, ––

(i) clauses (d), (n) and (o) shall be omitted;

(ii) for clause (q), the following clause shall be

substituted, namely:––

‘(q) “prescribed” means,—

(A) in relation to proceedings before a High

Court, prescribed by rules made by the High

Court; and

(B) in other cases, prescribed by rules made

under this Act;’:

(iii) clauses (y) and (z) shall be omitted;

(b) in section 44, the words “or the Tribunal” shall

be omitted;

Chapter heading “APPEALS” shall be substituted;

(d) sections 54 and 55 shall be omitted;

(e) in section 56,––

(i) for the word “Tribunal”, wherever they occur,

the words “High Court” shall be substituted;

(ii) sub-section (3) shall be omitted;

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(i) for the word “Tribunal”, wherever it occurs, the

words “High Court” shall be substituted;

(ii) sub-section (5) shall be omitted;

(g) sections 58 and 59 shall be omitted;

(h) in section 89, the words “or the Tribunal” shall

be omitted.

CHAPTER X

AMENDMENTS TO THE CONTROL OF

NATIONAL HIGHWAYS (LAND AND TRAFFIC)

ACT, 2002

11. In the Control of National Highways (Land and

Traffic) Act, 2002,—

Amendment of

Act 13 of 2003.

(a) in section 2,–

(i) clause (a) shall be omitted;

(ii) after clause (d), the following clause shall be

inserted, namely:––

‘(da) “Court” means the principal Civil Court of

original jurisdiction in a district, and includes the

High Court in exercise of its ordinary original civil

jurisdiction;’;

(iii) clause (l) shall be omitted;

(b) in Chapter II, in the Chapter heading, the

words “AND TRIBUNALS, ETC.” shall be omitted;

(d) for section 14, the following section shall be

substituted, namely:–

Appeals.

“14. An appeal from any order passed, or any

action taken, excluding issuance or serving of

notices, under sections 26, 27, 28, 36, 37 and 38 by

the Highway Administration or an officer authorised

on its behalf, as the case may be, shall lie to the

(f) in section 57,–

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Court.”;

(e) sections 15 and 16 shall be omitted;

(f) in section 17, for the word “Tribunal”, at both

the places where it occurs, the word “Court” shall be

substituted;

(g) section 18 shall be omitted;

(h) in section 19, for the word “Tribunal”, at both

the places where it occurs, the word “Court” shall be

substituted;

(i) section 40 shall be omitted;

(j) in section 41,––

(i) the words “or every order passed or decision

made on appeal under this Act by the Tribunal”

shall be omitted;

(ii) the words “or Tribunal” shall be omitted;

(k) in section 50, in sub-section (2), clause (f) shall

be omitted.

CHAPTER XI

AMENDMENTS TO THE FINANCE ACT, 2017

Amendment of

Act 7 of 2017.

12. In the Finance Act, 2017 (hereinafter referred to

as the Finance Act),––

(i) for section 184, the following section shall be

substituted, namely:—

Qualifications,

appointment,

etc.,

Chairperson and

Members

Tribunal.

“184. (1) The Central Government may, by

notification, make rules to provide for the qualifications,

appointment, salaries and allowances, resignation,

removal and the other conditions of service of the

Chairperson and Members of the Tribunal as specified in

the Eighth Schedule:

Provided that a person who has not completed the

age of fifty years shall not be eligible for appointment as

a Chairperson or Member:

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Provided further that the allowances and benefits so

payable shall be to the extent as are admissible to a

Central Government officer holding the post carrying the

same pay:

Provided also that where the Chairperson or Member

takes a house on rent, he may be reimbursed a house rent

subject to such limits and conditions as may be provided

by rules.

(2) The Chairperson and Members of a Tribunal

shall be appointed by the Central Government on the

recommendation of a Search-cum-Selection Committee

(hereinafter referred to as the Committee) constituted

under sub-section (3), in such manner as the Central

Government may, by rules, provide.

(3) The Search-cum-Selection Committee shall

consist of—

(a) the Chief Justice of India or a Judge of

Supreme Court nominated by him–– Chairperson of

the Committee;

(b) two Secretaries nominated by the Government

of India –– Members;

(i) in case of appointment of a Chairperson

Tribunal,

shall

the

outgoing

Chairperson of the Tribunal; or

(ii) in case of appointment of a Member of a

Tribunal, shall be the sitting Chairperson of the

Tribunal; or

(iii) in case of the Chairperson of the

Tribunal seeking re-appointment, shall be a

retired Judge of the Supreme Court or a retired

Chief Justice of a High Court nominated by the

Chief Justice of India:

Provided that, in the following cases, such

Member shall always be a retired Judge of the

Supreme Court or a retired Chief Justice of a

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High Court nominated by the Chief Justice of

India, namely:––

(i) Industrial Tribunal constituted by the

Central Government under the Industrial

Disputes Act, 1947;

14 of 1947.

(ii) Tribunals and Appellate Tribunals

constituted under the Recovery of Debts Due to

Banks and Financial Institutions Act, 1993;

51 of 1993.

(iii) Tribunals where the Chairperson or the

outgoing Chairperson, as the case may be, of

the Tribunal is not a retired Judge of the

Supreme Court or a retired Chief Justice or

Judge of a High Court; and

(iv) such other Tribunals as may be notified

by the Central Government in consultation with

the Chairperson of the Search-cum-Selection

Committee of that Tribunal; and

(d) the Secretary to the Government of India in

the Ministry or Department under which the

Tribunal is constituted or established –– Member-

Secretary.

(4) The Chairperson of the Committee shall have

the casting vote.

(5) The Member-Secretary of the Committee

shall not have any vote.

(6) The Committee shall determine its procedure

for making its recommendations.

(7) Notwithstanding anything contained in any

judgment, order or decree of any court or in any law

for the time being in force, the Committee shall

recommend a panel of two names for appointment to

the post of Chairperson or Member, as the case may

be, and the Central Government shall take a decision

on the recommendations of the Committee preferably

within three months from the date on which the

Committee makes its recommendations to the

Government.

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(8) No appointment shall be invalid merely by

reason of any vacancy or absence in the Committee.

(9) The Chairperson and Member of a Tribunal

shall be eligible for re-appointment in accordance with

the provisions of this section:

Provided that in making such re-appointment,

preference shall be given to the service rendered by

such person.

(10) The Central Government shall, on the

recommendation of the Committee, remove from

office, in such manner as may be provided by rules,

any Member, who—

(a) has been adjudged as an insolvent; or

(b) has been convicted of an offence which

involves moral turpitude; or

incapable of acting as such a Member; or

(d) has acquired such financial or other

interest as is likely to affect prejudicially his

functions as a Member; or

(e) has so abused his position as to render his

continuance in office prejudicial to the public

interest:

Provided that where a Member is proposed to

be removed on any ground specified in clauses

(b) to (e), he shall be informed of the charges

against him and given an opportunity of being

heard in respect of those charges.

Explanation.–– For the purposes of this section, the

expressions ––

(i) “Tribunal” means a Tribunal, Appellate Tribunal

or Authority as specified in column (2) of the Eighth

Schedule;

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(ii) “Chairperson” includes Chairperson, Chairman,

President and Presiding Officer of a Tribunal;

(iii) “Member” includes Vice-Chairman, Vice-

Chairperson,

Vice-President,

Account

Member,

Administrative Member, Judicial Member, Expert

Member, Law Member, Revenue Member and

Technical Member, as the case may be, of a

Tribunal.”;

(ii) in section 184 as so substituted, after sub-section

(10) and before the Explanation, the following sub-

section shall be inserted and shall be deemed to have

been inserted with effect from the 26^th May, 2017,

namely:––

“(11) Notwithstanding anything contained in any

judgment, order, or decree of any court or any law for the

time being in force, ––

(i) the Chairperson of a Tribunal shall hold office

for a term of four years or till he attains the age of

seventy years, whichever is earlier;

(ii) the Member of a Tribunal shall hold office for

a term of four years or till he attains the age of sixty-

seven years, whichever is earlier:

Provided that where a Chairperson or Member is

appointed between the 26^th day of May, 2017 and the

notified date and the term of his office or the age of

retirement specified in the order of appointment issued by

the Central Government is greater than that which is

specified in this section, then, notwithstanding anything

contained in this section, the term of office or age of

retirement or both, as the case may be, of the Chairperson

or Member shall be as specified in his order of

appointment subject to a maximum term of office of five

years.”.

Amendment of

section 186.

13. Section 186 of the Finance Act shall be

renumbered as sub-section (1) thereof, and after sub-

section (1) as so renumbered, the following sub-section

shall be inserted, namely:––

“(2) Subject to the provisions of sections 184 and

185, neither the salary and allowances nor the other terms

and conditions of service of Chairperson, Vice-

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Chairperson, Chairman, Vice-Chairman, President, Vice-

President, Presiding Officer or Member of the Tribunal,

Appellate Tribunal or, as the case may be, other

Authority may be varied to his disadvantage after his

appointment.”.

14. In the Finance Act, in the Eighth Schedule, ––

Amendment of

Eighth

Schedule.

(i)items 10, 12, 14, and 15 shall be omitted;

(ii) for item 16, the following item shall be

substituted, namely:––

(1)

(2)

(3)

16.

National

Consumer

Disputes

Redressal

Commission

The

Consumer

Protection Act, 2019

(35 of 2019)

15. (1) Notwithstanding anything contained in any

law for the time being in force, any person appointed as

the Chairperson or Chairman or President or Presiding

Officer or Vice-Chairperson or Vice-Chairman or Vice-

President or Member of the Tribunal, Appellate Tribunal,

or, as the case may be, other Authorities specified in the

Schedule and holding office as such immediately before

the notified date, shall, on and from the notified date,

cease to hold such office, and he shall be entitled to claim

compensation not exceeding three months' pay and

allowances for the premature termination of term of his

office or of any contract of service.

Transitional

provisions.

(2) The officers and other employees of the

Tribunals, Appellate Tribunals and other Authorities

specified in the Schedule appointed on deputation, before

the notified date, shall, on and from the notified date,

stand reverted to their parent cadre, Ministry or

Department.

(3) Any appeal, application or proceeding pending

before the Tribunal, Appellate Tribunal or other

Authorities specified in the Schedule, other than those

pending before the Authority for Advance Rulings under

the Income-tax Act, 1961, before the notified date, shall

stand transferred to the Court before which it would have

been filed had this Ordinance been in force on the date of

filing of such appeal or application or initiation of the

43 of 1961.

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Tamil nadu government gazette

proceeding, and the Court may proceed to deal with such

cases from the stage at which it stood before such

transfer, or from any earlier stage, or de novo, as the

Court may deem fit.

(4) The balance of all monies received by, or

advanced to, the Tribunal, Appellate Tribunal or other

Authorities specified in the Schedule and not spent by it

before the notified date, shall, on and from the notified

date, stand transferred to the Central Government.

(5) All property of whatever kind owned by, or

vested in, the Tribunal, Appellate Tribunal or other

Authorities specified in the Schedule before the notified

date, shall stand transferred to, on and from the notified

date, and shall vest in the Central Government.

Power

remove

difficulties.

16. (1) If any difficulty arises in giving effect to the

provisions of this Ordinance, the Central Government

may, by general or special order published in the Official

Gazette, make such provisions, not inconsistent with the

provisions of this Ordinance, as appear to it to be

necessary or expedient for removing the difficulty.

(2) Every order made under this section shall, as

soon as may be after it is made, be laid before each

Houses of Parliament.

Tamil nadu government gazette

[Part IV—Sec. 4

THE SCHEDULE

(See section 15)

1. Appellate Tribunal under Cinematograph Act, 1952 (37 of 1952).

2. Authority for Advance Rulings under Income-tax Act, 1961 (43 of 1961).

3. Airport Appellate Tribunal under Airports Authority of India Act, 1994 (Act 55 of 1994).

4. Intellectual Property Appellate Board under Trade Marks Act, 1999 (47 of 1999).

5. Plant Varieties Protection Appellate Tribunal under Protection of Plant Varieties and

Farmers’ Rights Act, 2001 (53 of 2001).

Ram Nath Kovind,

President.

Dr. G. Narayana Raju,

Secretary to the Government of India.

(Re-published by Order of the Governor)

A.S. pasupathi,

Additional Secretary to Government,

Law Department.

May 12, 2021]

Tamil nadu government gazette

New Delhi, the 4th April, 2021/Chaitra 14, 1943 (Saka)

THE INSOLVENCY AND BANKRUPTCY CODE

(AMENDMENT) ORDINANCE, 2021

NO. 3 OF 2021

Promulgated by the President in the Seventy-second Year

of the Republic of India.

An Ordinance further to amend the Insolvency and

Bankruptcy Code, 2016.

WHEREAS COVID-19 pandemic has impacted

businesses, financial markets and economies all over the

world, including India, and has impacted the business

operations of micro, small and medium enterprises and

exposed many of them to financial distress;

AND WHEREAS the Government has taken several

measures to mitigate the distress caused by the pandemic,

including increasing the minimum amount of default for

initiation of corporate insolvency resolution process to

one crore rupees, and suspending filing of applications

for initiation of corporate insolvency resolution process

in respect of the defaults arising during the period of one

year beginning from 25th March 2020;

The following Central Ordinance promulgated by the

President of India is hereby republished for general information:

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[Part IV—Sec. 4

AND WHEREAS such suspension for filing of

applications for initiation of corporate insolvency

resolution process has ended on 24th March 2021;

AND WHEREAS the country has shown remarkable

resilience, be it tackling the pandemic or ensuring

economic recovery;

AND WHEREAS micro, small and medium enterprises

are critical for India’s economy as they contribute

significantly to its gross domestic product and provide

employment to a sizeable population;

AND WHEREAS it is considered necessary to urgently

address the specific requirements of micro, small and

medium enterprises relating to the resolution of their

insolvency, due to the unique nature of their businesses

and simpler corporate structures;

AND WHEREAS it is considered expedient to provide

an efficient alternative insolvency resolution process for

corporate persons classified as micro, small and medium

enterprises under the Insolvency and Bankruptcy Code,

2016, ensuring quicker, cost-effective and value

maximising outcomes for all the stakeholders, in a

manner which is least disruptive to the continuity of their

businesses and which preserves jobs;

AND WHEREAS in order to achieve these objectives,

it is considered expedient to introduce a pre-packaged

insolvency resolution process for corporate persons

classified as micro, small and medium enterprises;

AND WHEREAS Parliament is not in session and the

President is satisfied that circumstances exist which

render it necessary for him to take immediate action;

NOW, THEREFORE, in exercise of the powers

conferred by clause (1) of article 123 of the Constitution,

the President is pleased to promulgate the following

Ordinance: —

Short title and

commencement.

1. (1) This Ordinance may be called the Insolvency

and Bankruptcy Code (Amendment) Ordinance, 2021.

(2) It shall come into force at once.

Amendment

section 4.

2. In the Insolvency and Bankruptcy Code, 2016

(hereinafter referred to as the principal Act), in section 4,

after the proviso, the following proviso shall be inserted,

namely:—

31 of 2016.

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“Provided further that the Central Government

may, by notification, specify such minimum amount

of default of higher value, which shall not be more

than one crore rupees, for matters relating to the pre-

packaged insolvency resolution process of corporate

debtors under Chapter III-A.”.

3. In section 5 of the principal Act,—

Amendment of

section 5.

(i) after clause (2), the following clause shall be

inserted, namely: —

‘(2A)

“base

resolution

plan”

means

resolution plan provided by the corporate debtor

under clause (c) of sub-section (4) of section

54A;’;

(ii) in clause (5), in sub-clause (b), after the words

“corporate insolvency resolution process”, the words

“or the pre-packaged insolvency resolution process, as

the case may be,” shall be inserted;

(iii) in clause (11), after the words “corporate

insolvency resolution process”, the words “or pre-

packaged insolvency resolution process, as the case

may be” shall be inserted;

(iv) inclause (15), after the words, “process

period”, the words “or by the corporate debtor during

the pre-packaged insolvency resolution process

period, as the case may be,” shall be inserted;

(v) in clause (19), after the words “for the

purposes of”, the words and figures “Chapter VI and”

shall be inserted;

(vi) after clause (23), the following clauses shall

be inserted, namely: —

‘(23A)“preliminary information” means a

memorandum submitted by the corporate debtor

under clause (b) of sub-section (1) of section 54G;

(23B)“pre-packaged insolvency date” means

the date of admission of an application for

initiating the pre-packaged insolvency resolution

process by the Adjudicating Authority under

clause (a) of sub-section (4) of section 54C;

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[Part IV—Sec. 4

(23C) “pre-packaged insolvency resolution

process costs” means—

(a) the amount of any interim finance and the

costs incurred in raising such finance;

(b) the fees payable to any person acting as a

resolution

professional

and

any

expenses

incurred by him for conducting the pre-packaged

insolvency resolution process during the pre-

packaged insolvency resolution process period,

subject to sub-section (6) of section 54F;

professional in running the business of the

corporate debtor as a going concern pursuant to

an order under sub-section (2) of section 54J;

(d) any costs incurred at the expense of the

Government to facilitate the pre-packaged

insolvency resolution process; and

(e) anyother costs as may be specified;

(23D) “pre-packaged insolvency resolution

process period” means the period beginning from

the pre-packaged insolvency commencement date

and ending on the date on which an order under

sub-section (1) of section 54L, or sub-section (1)

of section 54N, or sub-section (2) of section 54-O,

as the case may be, is passed by the Adjudicating

Authority;’;

(vii) in clause (25), after the words, brackets and

figures “of sub-section (2) of section 25”, the words,

figures and letter “or pursuant to section 54K, as the

case may be” shall be inserted;

(viii) in clause (27), after the words “corporate

insolvency resolution process”, the words “or the pre-

packaged insolvency resolution process, as the case

may be,” shall be inserted.

Amendment

section 11.

4. In section 11 of the principal Act,—

(i) in clause (a), after the words “corporate

insolvency resolution process”, the words “or a pre-

packaged insolvency resolution process” shall be

inserted;

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(ii) after clause (a), the following clause shall be

inserted, namely:––

“(aa) a financial creditor or an operational

creditor of a corporate debtor undergoing a pre-

packaged insolvency resolution process; or”;

(iii) after clause (b), the following clause shall be

inserted, namely:—

“(ba) a corporate debtor in respect of whom a

resolution plan has been approved under Chapter

III-A, twelve months preceding the date of making

of the application; or”.

5. After section 11 of the principal Act, the

following section shall be inserted, namely: —

Insertion of new

section 11A.

“11A. (1) Where an application filed under section

54C is pending, the Adjudicating Authority shall pass

an order to admit or reject such application, before

considering any application filed under section 7 or

section 9 or section 10 during the pendency of such

application under section 54C, in respect of the same

corporate debtor.

Disposal

applications

under

section

54C and under

section

section 10.

(2) Where an application under section 54C is

filed within fourteen days of filing of any application

under section 7 or section 9 or section 10, which is

pending, in respect of the same corporate debtor,then,

notwithstanding anything contained in sections 7, 9

and 10, the Adjudicating Authority shall first dispose

of the application under section 54C.

(3) Where an application under section 54C is

filed after fourteen days of the filing of any

application under section 7 or section 9 or section

10, in respect of the same corporate debtor, the

Adjudicating Authority shall first dispose of the

application under sections 7, 9 or 10.

(4) The provisions of this section shall not apply

where an application under section 7 or section 9 or

section 10 is filed and pending as on the date of the

commencement of the Insolvency and Bankruptcy Code

(Amendment) Ordinance, 2021.”.

6. In section 33 of the principal Act, in sub-section

(3), after the words, “approved by the Adjudicating

Authority”, the words, figures, brackets and letter “under

Amendment of

section 33.

Tamil nadu government gazette

[Part IV—Sec. 4

section 31 or under sub-section (1) of section 54L,” shall

be inserted.

Amendment

section 34.

7. In section 34 of the principal Act, in sub-section

(1), after the words and figures, “under Chapter II”, the

words, figures and letter “or for the pre-packaged

insolvency resolution process under Chapter III-A” shall

be inserted.

Insertion of new

Chapter III-A.

8. After Chapter III of the principal Act, the

following Chapter shall be inserted, namely:—

‘CHAPTER III-A

PRE-PACKAGED INSOLVENCY RESOLUTION

PROCESS

Corporate

debtors

eligible

for pre-packaged

insolvency

resolution

process.

54A.(1) An application for initiating pre-packaged

insolvency resolution process may be made in respect of

a corporate debtor classified as a micro, small or

medium enterprise under sub-section (1) of section 7 of

the Micro, Small and Medium Enterprises Development

Act, 2006.

27 of 2006.

(2) Without prejudice to sub-section (1), an

application for initiating pre-packaged insolvency

resolution process may be made in respect of a

corporate debtor, who commits a default referred to in

section 4, subject to the following conditions, that––

(a)

has

not

undergone

pre-packaged

insolvency

resolution

process

completed

corporate insolvency resolution process, as the case

may be, during the period of three years preceding

the initiation date;

(b) it is not undergoing a corporate insolvency

resolution process;

passed under section 33;

(d) it is eligible to submit a resolution plan under

section 29A;

(e) the financial creditors of the corporate

debtor, not being its related parties, representing

such number and such manner as may be specified,

have proposed the name of the insolvency

professional

appointed

resolution

professional for conducting the pre-packaged

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insolvency resolution process of the corporate

debtor, and the financial creditors of the corporate

debtor, not being its related parties, representing not

less than sixty-six per cent. in value of the financial

debt due to such creditors, have approved such

proposal in such form as may be specified:

Provided that where a corporate debtor does

not have any financial creditors, not being its

related parties, the proposal and approval under

this clause shall be provided by such persons as

may be specified;

(f) the majority of the directors or partners of the

corporate debtor, as the case may be, have made a

declaration, in such form as may be specified,

stating, inter alia, —

(i) that the corporate debtor shall file an

application

for

initiating

pre-packaged

insolvency resolution process within a definite

time period not exceeding ninety days;

(ii)

that

the

pre-packaged

insolvency

resolution process is not being initiated to

defraud any person; and

(iii) the name of the insolvency professional

proposed and approved to be appointed as

resolution professional under clause (e);

(g) the members of the corporate debtor have

passed a special resolution, or at least three-fourth of

the total number of partners, as the case may be, of

the corporate debtor have passed a resolution,

approving the filing of an application for initiating

pre-packaged insolvency resolution process.

(3) The corporate debtor shall obtain an approval

from its financial creditors, not being its related parties,

representing not less than sixty-six per cent. in value of

the financial debt due to such creditors, for the filing of

an application for initiating pre-packaged insolvency

resolution process, in such form as may be specified:

Provided that where a corporate debtor does not

have any financial creditors, not being its related

parties, the approval under this sub-section shall be

provided by such persons as may be specified.

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[Part IV—Sec. 4

(4) Prior to seeking approval from financial

creditors under sub-section (3), the corporate debtor

shall provide such financial creditors with —

(a) the declaration referred to inclause (f) of sub-

section (2);

(b) the special resolution or resolution referred

to in clause (g) of sub-section (2);

requirements referred to in section 54K, and such

other conditions as may be specified; and

(d) such other information and documents as

may be specified.

Duties

resolution

professional

before initiation

of pre-packaged

insolvency

resolution

process.

54B. (1) The insolvency professional, proposed to

be appointed as the resolution professional, shall have

the following duties commencing from the date of the

approval under clause (e) of sub-section (2) of section

54A, namely:—

(a) prepare a report in such form as may be

specified, confirming whether the corporate debtor

meets the requirements of section 54A, and the base

resolution plan conforms to the requirements

referred to in clause (c) of sub-section (4) of section

54A;

(b) file such reports and other documents, with

the Board, as may be specified; and

specified.

(2) The duties of the insolvency professional under

sub-section (1) shall cease, if, —

(a) the corporate debtor fails to file an

application for initiating pre-packaged insolvency

resolution process within the time period as stated

under the declaration referred to in clause (f) of sub-

section (2) of section 54A; or

(b) the application for initiating pre-packaged

insolvency resolution process is admitted or rejected

by the Adjudicating Authority,

as the case may be.

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(3) The fees payable to the insolvency professional

in relation to the duties performed under sub-section (1)

shall be determined and borne in such manner as may be

specified and such fees shall form part of the pre-

packaged insolvency resolution process costs, if the

application for initiation of pre-packaged insolvency

resolution process is admitted.

54C. (1) Where a corporate debtor meets the

requirements of section 54A, a corporate applicant

thereof may file an application with the Adjudicating

Authority

for

initiating

pre-packaged

insolvency

resolution process.

Application

initiate

pre-

packaged

insolvency

resolution

process.

(2) The application under sub-section (1) shall be

filed in such form, containing such particulars, in such

manner and accompanied with such fee as may be

prescribed.

(3) The corporate applicant shall, along with the

application, furnish—

(a) the declaration, special resolution or

resolution, as the case may be, and the approval of

financial creditors for initiating pre-packaged

insolvency resolution process in terms of section

54A;

(b) the name and written consent, in such form

as may be specified, of the insolvency professional

proposed to be appointed as resolution professional,

as approved under clause (e) of sub-section (2) of

section 54A, and his report as referred to in clause

(a) of sub-section (1) of section 54B;

transactions of the corporate debtor that may be

within the scope of provisions in respect of

avoidance of transactions under Chapter III or

fraudulent or wrongful trading under Chapter VI, in

such form as may be specified;

(d) information relating to books of account of

the corporate debtor and such other documents

relating to such period as may be specified.

(4) The Adjudicating Authority shall, within a

period of fourteen days of the receipt of the application,

by an order,––

(a) admit the application, if it is complete; or

(b) reject the application, if it is incomplete:

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[Part IV—Sec. 4

Provided that the Adjudicating Authority

shall, before rejecting an application, give notice

to the applicant to rectify the defect in the

application within seven days from the date of

receipt of such notice from the Adjudicating

Authority.

(5) The pre-packaged insolvency resolution process

shall commence from the date of admission of the

application under clause (a) of sub-section (4).

Time-limit

for

completion

pre-packaged

insolvency

resolution

process.

54D. (1) The pre-packaged insolvency resolution

process shall be completed within a period of one

hundred and twenty days from the pre-packaged

insolvency commencement date.

(2) Without prejudice to sub-section (1), the

resolution professional shall submit the resolution plan,

as approved by the committee of creditors, to the

Adjudicating Authority under sub-section (4) or sub-

section (12), as the case may be, of section 54K, within

a period of ninety days from the pre-packaged

insolvency commencement date.

(3) Where no resolution plan is approved by the

committee of creditors within the time period referred to

in sub-section (2), the resolution professional shall, on

the day after the expiry of such time period, file an

application with the Adjudicating Authority for

termination of the pre-packaged insolvency resolution

process in such form and manner as may be specified.

Declaration

moratorium and

public

announcement

during

pre-

packaged

insolvency

resolution

process.

54E. (1) The Adjudicating Authority shall, on the

pre-packaged insolvency commencement date, along

with the order of admission under section 54C —

(a) declare a moratorium for the purposes

referred to in sub-section (1) read with sub-section

(3) of section 14, which shall, mutatis mutandis

apply, to the proceedings under this Chapter;

(b) appoint a resolution professional —

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(i) as named in the application, if no

disciplinary proceeding is pending against him;

(ii) based on the recommendation made by

the Board, if any disciplinary proceeding is

pending against the insolvency professional

named in the application.

of the pre-packaged insolvency resolution process to

be made by the resolution professional, in such form

and manner as may be specified, immediately after

his appointment.

(2) The order of moratorium shall have effect from

the date of such order till the date on which the pre-

packaged insolvency resolution process period comes to

an end.

54F. (1) The resolution professional shall conduct

the pre-packaged insolvency resolution process of a

corporate debtor during the pre-packaged insolvency

resolution process period.

Duties

and

powers

resolution

professional

during

pre-

packaged

insolvency

resolution

process.

(2) The resolution professional shall perform the

following duties, namely:—

(a) confirm the list of claims submitted by the

corporate debtor under section 54G, in such manner

as may be specified;

(b) inform creditors regarding their claims as

confirmed under clause (a), in such manner as may

be specified;

manner as may be specified;

(d) monitor management of the affairs of the

corporate debtor;

(e) inform the committee of creditors in the

event of breach of any of the obligations of the

Board of Directors or partners, as the case may be,

of the corporate debtor, under the provisions of this

Chapter and the rules and regulations made

thereunder;

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[Part IV—Sec. 4

(f) constitute the committee of creditors and

convene and attend all its meetings;

(g) prepare the information memorandum on the

basis of the preliminary information memorandum

submitted under section 54G and any other relevant

information, in such form and manner as may be

specified;

(h) file applications for avoidance of transactions

under Chapter III or fraudulent or wrongful trading

under Chapter VI, if any; and

(i) such other duties as may be specified.

(3) The resolution professional shall exercise the

following powers, namely:—

(a) access all books of accounts, records and

information available with the corporate debtor;

(b) access the electronic records of the corporate

debtor from an information utility having financial

information of the corporate debtor;

other relevant documents of the corporate debtor

available with Government authorities, statutory

auditors, accountants and such other persons as may

be specified;

(d) attend meetings of members, Board of

Directors and committee of directors, or partners, as

the case may be, of the corporate debtor;

(e)

appoint

accountants,

legal

other

professionals in such manner as may be specified;

(f) collect all information relating to the assets,

finances and operations of the corporate debtor for

determining the financial position of the corporate

debtor and the existence of any transactions that

may be within the scope of provisions relating to

avoidance of transactions under Chapter III or

fraudulent or wrongful trading under Chapter VI,

including information relating to —

(i) business operations for the previous two

years from the date of pre-packaged insolvency

commencement date;

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the previous two years from the date of pre-

packaged insolvency commencement date;

(iii) list of assets and liabilities as on the

initiation date; and

(iv) such other matters as may be specified;

(g) take such other actions in such manner as

may be specified.

(4) From the date of appointment of the resolution

professional, the financial institutions maintaining

accounts of the corporate debtor shall furnish all

information relating to the corporate debtor available

with them to the resolution professional, as and when

required by him.

(5) The personnel of the corporate debtor, its

promoters and any other person associated with the

management of the corporate debtor shall extend all

assistance and cooperation to the resolution professional

as may be required by him to perform his duties and

exercise his powers, and for such purposes, the

provisions of sub-sections (2) and (3) of section 19

shall, mutatis mutandis apply, in relation to the

proceedings under this Chapter.

(6) The fees of the resolution professional and any

expenses incurred by him for conducting the pre-

packaged insolvency resolution process shall be

determined in such manner as may be specified:

Provided that the committee of creditors may

impose limits and conditions on such fees and expenses:

Provided further that the fees and expenses for the

periodprior to the constitution of the committee of

creditors shall be subject to ratification by it.

(7) The fees and expenses referred to in sub-section

(6) shall be borne in such manner as may be specified.

54G. (1) The corporate debtor shall, within two days

of the pre-packaged insolvency commencement date,

submit to the resolution professional the following

information, updated as on that date, in such form and

manner as may be specified, namely:—

List of claims

and preliminary

information

memorandum.

(a) a list of claims, along with details of the

respective creditors, their security interests and

(ii) financial and operational payments for

guarantees, if any; and

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[Part IV—Sec. 4

(b) a preliminary information memorandum

containing information relevant for formulating a

resolution plan.

(2) Where any person has sustained any loss or

damage as a consequence of the omission of any

material information or inclusion of any misleading

information in the list of claims or the preliminary

information memorandum submitted by the corporate

debtor, every person who—

(a) is a promoter or director or partner of the

corporate debtor, as the case may be, at the time of

submission of the list of claims or the preliminary

information memorandum by the corporate debtor;

(b) has authorised the submission of the list of

claims or the preliminary information memorandum

by the corporate debtor,

shall, without prejudice to section 77A, be liable to pay

compensation to every person who has sustained such

loss or damage.

(3) No person shall be liable under sub-section (2),

if the list of claims or the preliminary information

memorandum was submitted by the corporate debtor

without his knowledge or consent.

(4) Subject to section 54E, any person, who

sustained any loss or damage as a consequence of

omission of material information or inclusion of any

misleading information in the list of claims or the

preliminary information memorandum shall be entitled

to move a court having jurisdiction for seeking

compensation for such loss or damage.

Management

affairs

corporate debtor.

54H. During the pre-packaged insolvency resolution

process period,—

(a) the management of the affairs of the

corporate debtor shall continue to vest in the Board

of Directors or the partners, as the case may be, of

the corporate debtor, subject to such conditions as

may be specified;

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(b) the Board of Directors or the partners, as the

case may be, of the corporate debtor, shall make

every endeavour to protect and preserve the value of

the property of the corporate debtor, and manage its

operations as a going concern; and

partners, as the case may be, of the corporate debtor,

shall exercise and discharge their contractual or

statutory rights and obligations in relation to the

corporate debtor, subject to the provisions of this

Chapter and such other conditions and restrictions as

may be prescribed.

54-I. (1) The resolution professional shall, within

seven

daysof

the

pre-packaged

insolvency

commencement date, constitute a committee of

creditors, based on the list of claims confirmed under

clause (a) of sub-section (2) of section 54F:

Committee

creditors.

Provided that the composition of the committee of

creditors shall be altered on the basis of the updated list

of claims, in such manner as may be specified, and any

such alteration shall not affect the validity of any past

decision of the committee of creditors.

(2) The first meeting of the committee of creditors

shall be held within seven days of the constitution of the

committee of creditors.

(3) Provisions of section 21, except sub-section (1)

thereof, shall, mutatis mutandis apply, in relation to the

committee of creditors under this Chapter:

Provided thatfor the purposes of this sub-section,

references to the “resolution professional” under sub-

sections (9) and (10) of section 21, shall be construed as

references to “corporate debtor or the resolution

professional”.

54J. (1) Where the committee of creditors, at any

time during the pre-packaged insolvency resolution

process period, by a vote of not less than sixty-six per

cent. of the voting shares, resolves to vest the

management of the corporate debtor with the resolution

professional, the resolution professional shall make an

application for this purpose to the Adjudicating

Authority, in such form and manner as may be

specified.

Vesting

management of

corporate debtor

with resolution

professional.

(2) On an application made under sub-section (1),

if the Adjudicating Authority is of the opinion that

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[Part IV—Sec. 4

during

the

pre-packaged

insolvency

resolution

process—

(a) the affairs of the corporate debtor have been

conducted in a fraudulent manner; or

(b) there has been gross mismanagement of the

affairs of the corporate debtor,

it shall pass an order vesting the management of the

corporate debtor with the resolution professional.

(3) Notwithstanding anything to the contrary

contained in this Chapter, the provisions of —

(a) sub-sections (2) and (2A) of section 14;

(b) section 17;

(d) sections 19 and 20;

(e) sub-section (1) of section 25;

(f) clauses (a) to (c) and clause (k) of sub-

section (2) of section 25; and

(g) section 28,

shall, mutatis mutandis apply, to the proceedings under

this Chapter, from the date of the order under sub-

section (2), until the pre-packaged insolvency resolution

process period comes to an end.

Consideration

and approval of

resolution plan.

54K. (1) The corporate debtor shall submit the base

resolution plan, referred to in clause (c) of sub-section

(4) of section 54A, to the resolution professional within

two

days

the

pre-packaged

insolvency

commencement date, and the resolution professional

shall present it to the committee of creditors.

(2) The committee of creditors may provide the

corporate debtor an opportunity to revise the base

resolution plan prior to its approval under sub-section

(4) or invitation of prospective resolution applicants

under sub-section (5), as the case may be.

(3) The resolution plans andthe base resolution plan,

submitted under this section shall conform to the

requirements referred to in sub-sections (1) and (2) of

section 30, and the provisions of sub-sections (1), (2)

and (5) of section 30 shall, mutatis mutandis apply, to

the proceedings under this Chapter.

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(4) The committee of creditors may approve the

base resolution plan for submission to the Adjudicating

Authority if it does not impair any claims owed by the

corporate debtor to the operational creditors.

(5) Where —

(a) the committee of creditors does not approve

the base resolution plan under sub-section (4); or

(b) the base resolution plan impairs any claims

owed by the corporate debtor to the operational

creditors,

the resolution professional shall invite prospective

resolution applicants to submit a resolution plan or

plans, to compete with the base resolution plan, in such

manner as may be specified.

(6) The resolution applicants submitting resolution

plans pursuant to invitation under sub-section (5), shall

fulfil such criteria as may be laid down by the resolution

professional with the approval of the committee of

creditors, having regard to the complexity and scale of

operations of the business of the corporate debtor and

such other conditions as may be specified.

(7) The resolution professional shall provide to the

resolution applicants, —

(a) the basis for evaluation of resolution plans

for the purposes of sub-section (9), as approved by

the committee of creditors subject to such conditions

as may be specified; and

(b) the relevant information referred to in section

29, which shall, mutatis mutandisapply, to the

proceedings under this Chapter,

in such manner as may be specified.

(8) The resolution professional shall present to the

committee of creditors, for its evaluation, resolution

plans which conform to the requirements referred to in

sub-section (2) of section 30.

(9) The committee of creditors shall evaluate the

resolution plans presented by the resolution professional

and select a resolution plan from amongst them.

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[Part IV—Sec. 4

(10) Where, on the basis of such criteria as may be

laid down by it, the committee of creditors decides that

the resolution plan selected under sub-section (9) is

significantly better than the base resolution plan, such

resolution plan may be selected for approval under sub-

section (12):

Provided that the criteria laid down by the

committee of creditors under this sub-section shall be

subject to such conditions as may be specified.

(11) Where the resolution plan selected under sub-

section (9) is not considered for approval or does not

fulfil the requirements of sub-section (10), it shall

compete with the base resolution plan, in such manner

and subject to such conditions as may be specified, and

one of them shall be selected for approval under sub-

section (12).

(12) The resolution plan selected for approval under

sub-section (10) or sub-section (11), as the case may be,

may be approved by the committee of creditors for

submission to the Adjudicating Authority:

Provided that where the resolution plan selected for

approval under sub-section (11) is not approved by the

committee of creditors, the resolution professional shall

file an application for termination of the pre-packaged

insolvency resolution process in such form and manner

as may be specified.

(13) The approval of the resolution plan under sub-

section (4) or sub-section (12), as the case may be, by

the committee of creditors, shall be by a vote of not less

than sixty-six per cent. of the voting shares, after

considering its feasibility and viability, the manner of

distribution proposed, taking into account the order of

priority amongst creditors as laid down in sub-section

(1) of section 53, including the priority and value of the

security interest of a secured creditor and such other

requirements as may be specified.

(14) While considering the feasibility and viability

of a resolution plan, where the resolution plan submitted

by the corporate debtor provides for impairment of any

claims owed by the corporate debtor, the committee of

creditors may require the promoters of the corporate

debtor to dilute their shareholding or voting or control

rights in the corporate debtor:

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Provided that where the resolution plan does not

provide for such dilution, the committee of creditors

shall, prior to the approval of such resolution plan under

sub-section (4) or sub-section (12), as the case may be,

record reasons for its approval.

(15) The resolution professional shall submit the

resolution plan as approved by the committee of

creditors under sub-section (4) or sub-section (12), as

the case may be, to the Adjudicating Authority.

Explanation I.––For the removal of doubts, it is

hereby clarified that, the corporate debtor being a

resolution applicant under clause (25) of section 5,

may submit the base resolution plan either

individually or jointly with any other person.

Explanation II.––For the purposes of sub-

sections (4) and (14), claims shall be considered to

be impaired where the resolution plan does not

provide for the full payment of the confirmed claims

as per the updated list of claims maintained by the

resolution professional.

54L. (1) If the Adjudicating Authority is satisfied

that the resolution plan as approved by the committee of

creditors under sub-section (4) or sub-section (12) of

section 54K, as the case may be, subject to the

conditions provided therein, meets the requirements as

referred to in sub-section (2) of section 30, it shall,

within thirty days of the receipt of such resolution plan,

by order approve the resolution plan:

Approval

resolution plan.

Provided that the Adjudicating Authority shall,

before passing an order for approval of a resolution plan

under this sub-section, satisfy itself that the resolution

plan has provisions for its effective implementation.

(2) The order of approval under sub-section (1) shall

have such effect as provided under sub-sections (1), (3)

and (4) of section 31, which shall, mutatis mutandis

apply, to the proceedings under this Chapter.

(3) Where the Adjudicating Authority is satisfied

that the resolution plan does not conform to the

requirements referred to in sub-section (1), it may,

within thirty days of the receipt of such resolution plan,

by an order, reject the resolution plan and pass an order

under section 54N.

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[Part IV—Sec. 4

contained in this section, where the Adjudicating

Authority has passed an order under sub-section (2) of

section 54J and the resolution plan approved by the

committee of creditors under sub-section (4) or sub-

section (12), as the case may be, of section 54K, does

not result in the change in the management or control of

the corporate debtor to a person who was not a promoter

or in the management or control of the corporate debtor,

the Adjudicating Authority shall pass an order —

(a) rejecting such resolution plan;

(b) terminating the pre-packaged insolvency

resolution process and passing a liquidation order in

respect of the corporate debtor as referred to in sub-

clauses (i), (ii) and (iii) of clause (b) of sub-section

(1) of section 33; and

resolution process costs, if any, shall be included as

part of the liquidation costs for the purposes of

liquidation of the corporate debtor.

Appeal

against

order

under

section 54L.

54M. Any appeal from an order approving the

resolution plan under sub-section (1) of section 54L,

shall be on the grounds laid down in sub-section (3) of

section 61.

Termination

pre-packaged

insolvency

resolution

process.

54N. (1) Where the resolution professional files an

application with the Adjudicating Authority, —

(a) under the proviso to sub-section (12) of

section 54K; or

(b) under sub-section (3) of section 54D,

the Adjudicating Authority shall, within thirty days

of the date of such application, by an order, —

(i) terminate the pre-packaged insolvency

resolution process; and

(ii) provide for the manner of continuation of

proceedings

initiated

for

avoidance

transactions under Chapter III or proceedings

initiated under section 66 and section 67A, if

any.

(4) Notwithstanding anything to the contrary

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(2) Where the resolution professional, at any time

after the pre-packaged insolvency commencement date,

but before the approval of resolution plan under sub-

section (4) or sub-section (12), as the case may be, of

section 54K, intimates the Adjudicating Authority of the

decision of the committee of creditors, approved by a

vote of sixty-six per cent. of the voting shares, to

terminate the pre-packaged insolvency resolution

process, the Adjudicating Authority shall pass an order

under sub-section (1).

(3) Where the Adjudicating Authority passes an

order under sub-section (1), the corporate debtor shall

bear the pre-packaged insolvency resolution process

costs, if any.

(4) Notwithstanding anything to the contrary

contained in this section, where the Adjudicating

Authority has passed an order under sub-section (2) of

section 54J and the pre-packaged insolvency resolution

process is required to be terminated under sub-section

(1), the Adjudicating Authority shall pass an order —

(a) of liquidation in respect of the corporate

debtor as referred to in sub-clauses (i), (ii) and (iii)

of clause (b) of sub-section (1) of section 33; and

(b) declare that the pre-packaged insolvency

resolution process costs, if any, shall be included as

part of the liquidation costs for the purposes of

liquidation of the corporate debtor.

54-O. (1) The committee of creditors, at any time

after the pre-packaged insolvency commencement date

but before the approval of resolution plan under sub-

section (4) or sub-section (12), as the case may be, of

section 54K, by a vote of sixty-six per cent. of the

voting shares, may resolve to initiate a corporate

insolvency resolution process in respect of the corporate

debtor, if such corporate debtor is eligible for corporate

insolvency resolution process under Chapter II.

Initiation

corporate

insolvency

resolution

process.

(2) Notwithstanding anything to the contrary

contained

in Chapter II, where the resolution

professional intimates the Adjudicating Authority of the

decision of the committee of creditors under sub-section

(1), the Adjudicating Authority shall, within thirty days

of the date of such intimation, pass an order to —

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[Part IV—Sec. 4

resolution process and initiate corporate insolvency

resolution process under Chapter II in respect of the

corporate debtor;

(b) appoint the resolution professional referred

to in under clause (b) of sub-section (1) of section

54E as the interim resolution professional, subject to

submission of written consent by such resolution

professional to the Adjudicatory Authority in such

form as may be specified; and

resolution process costs, if any, shall be included as

part of insolvency resolution process costs for the

purposes of the corporate insolvency resolution

process of the corporate debtor.

(3) Where the resolution professional fails to submit

written consent under clause (b) of sub-section (2), the

Adjudicating Authority shall appoint an interim

resolution professional by making a reference to the

Board for recommendation, in the manner as provided

under section 16.

(4) Where the Adjudicating Authority passes an

order under sub-section (2) —

(a) such order shall be deemed to be an order of

admission of an application under section 7 and

shall have the same effect;

(b) the corporate insolvency resolution process

shall commence from the date of such order;

transactions under Chapter III or proceedings

initiated under section 66 and section 67A, if any,

shall continue during the corporate insolvency

resolution process;

(d) for the purposes of sections 43, 46 and 50,

references to “insolvency commencement date”

shall

mean

“pre-packaged

insolvency

commencement date”; and

(e) in computing the relevant time or the period

for avoidable transactions, the time-period for the

duration of the pre-packaged insolvency resolution

process shall also be included, notwithstanding

anything to the contrary contained in sections 43, 46

and 50.

(a) terminate the pre-packaged insolvency

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54P. (1) Save as provided under this Chapter, the

provisions of sections 24, 25A, 26, 27, 28, 29A, 32A, 43

to 51, and the provisions of Chapters VI and VII of this

Part shall, mutatis mutandis apply, to the pre-packaged

insolvency resolution process, subject to the following,

namely:―

Application

provisions

Chapters II, III,

VI, and VII to

this Chapter.

(a) reference to “members of the suspended

Board of Directors or the partners” under clause (b)

of sub-section (3) of section 24 shall be construed as

reference to “members of the Board of Directors or

the partners,unless an order has been passed by the

Adjudicating Authority under section 54J”;

(b) reference to “clause (j) of sub-section (2) of

section 25” under section 26 shall be construed as

reference to “clause (h) of sub-section (2) of section

54F”;

shall be construed as reference to “section 54E”;

(d) reference to “resolution professional” in sub-

sections (1) and (4) of section 28 shall be construed

as “corporate debtor”;

(e) reference to “section 31” under sub-section

(3) of section 61 shall be construed as reference to

“sub-section (1) of section 54L”;

(f) reference to “section 14” in sub-sections (1)

and (2) of section 74 shall be construed as reference

to “clause (a) of sub-section (1) of section 54E”;

(g) reference to “section 31” in sub-section (3)

of section 74 shall be construed as" reference to

“sub-section (1) of section 54L”.

(2) Without prejudice to the provisions of this

Chapter and unless the context otherwise requires,

where the provisions of Chapters II, III, VI and VII are

applied to the proceedings under this Chapter,

references to —

(a) “insolvency commencement date” shall be

construed as references to “pre-packaged insolvency

commencement date”;

(b)

“resolution

professional”

“interim

resolution professional”, as the case may be, shall be

construed

references

the

resolution

professional appointed under this Chapter;

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[Part IV—Sec. 4

shall be construed as references to “pre-packaged

insolvency resolution process”; and

(d) “insolvency resolution process period” shall

be construed as references to “pre-packaged

insolvency resolution process period.”.’.

Amendment

section 61.

9. In section 61 of the principal Act, for sub-section

(4), the following sub-sections shall be substituted,

namely:—

“(4) An appeal against a liquidation order passed

under section 33, or sub-section (4) of section 54L, or

sub-section (4) of section 54N, may be filed on grounds

of material irregularity or fraud committed in relation to

such a liquidation order.

(5) An appeal against an order for initiation of

corporate insolvency resolution process passed under

sub-section (2) of section 54-O may be filed on grounds

of material irregularity or fraud committed in relation to

such an order.” .

Amendment

section 65.

10. In section 65 of the principal Act, after sub-section

(2), the following sub-section shall be inserted, namely: ––

“(3) If, any person initiates the pre-packaged

insolvency resolution process—

(a) fraudulently or with malicious intent for any

purpose other than for the resolution of insolvency;

(b) 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.”.

Insertion of new

section 67A.

11. After section 67 of the principal Act, the following

section shall be inserted, namely:––

Fraudulent

management

corporate debtor

during

pre-

packaged

insolvency

resolution

process.

“67A. On and after the pre-packaged insolvency

commencement date, where an officer of the corporate

debtor manages its affairs with the intent to defraud

creditors of the corporate debtor or for any fraudulent

purpose, the Adjudicating Authority may, on an

application by the resolution professional, pass an

order imposing upon any such officer, a penalty which

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Tamil nadu government gazette

shall not be less than one lakh rupees, but may extend

to one crore rupees.”.

12. In section 77 of the principal Act, the Explanation

shall be omitted.

Omission

Explanation to

section 77.

13. After section 77 of the principal Act, the following

section shall be inserted, namely:––

Insertion of new

section 77A.

“77A. (1) Where—

Punishment for

offences related

to pre-packaged

insolvency

resolution

process.

(a) a corporate debtor provides any information

in the application under section 54C which is false

in material particulars, knowing it to be false

oromits any material fact, knowing it to be material;

(b) a corporate debtor provides any information

in the list of claims or the preliminary information

memorandum submitted under sub-section (1) of

section 54G which is false in material particulars,

knowing it to be false or omits any material fact,

knowing it to be material; or

authorised or permitted the furnishing of such

information under sub-clauses (a) and (b),

such corporate debtor or person, as the case may be,

shall be punishable with imprisonment for a term which

shall not be less than three years, but which may extend

to five years or with fine which shall not be less than

one lakh rupees, but which may extend to one crore

rupees, or with both.

(2) If a director or partner of the corporate debtor, as

the case may be, deliberately contravenes the provisions

of Chapter III-A, such person shall be punishable with

imprisonment for not less than three years, but which

may extend to five years, or with fine which shall not be

less than one lakh rupees, but which may extend to one

crore rupees, or with both.

Explanation.––For the purposes of this section, and

sections 75, 76 and 77, an application shall be deemed

to be false in material particulars in case the facts

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[Part IV—Sec. 4

mentioned or omitted in the application, if true, or not

omitted from the application as the case may be, would

have been sufficient to determine the existence of a

default under this Code.”.

Amendment

section 208.

14. In section 208 of the principal Act,––

(i) after clause (c), the following clause shall be

inserted, namely:––

“(ca)

pre-packaged

insolvency

resolution

process under Chapter III-A of Part II;”;

(ii) after sub-section (1), the following sub-section

shall be inserted, namely:––

“(1A) Where the name of the insolvency

professional proposed to be appointed as a

resolution professional, is approved under clause

(e) of sub-section (2) of section 54A, it shall be the

function of such insolvency professional to take

such actions as may be necessary to perform his

functions and duties prior to the initiation of the

pre-packaged insolvency resolution process under

Chapter III-A of Part II.” .

Amendment

section 239.

15. In section 239 of the principal Act, in sub-section

(2),after clause (fc), the following clauses shall be inserted,

namely:––

“(fd) the form, particulars, manner and fee for

making application before the Adjudicating Authority

under sub-section (2) of section 54C;

(fe) the conditions and restrictions with which the

promoters, members, personnel and partners of the

corporate debtor shall exercise and discharge

contractual or statutory rights and obligations under

clause (c) of section 54H;”.

Amendment

section 240.

16. In section 240 of the principal Act, in sub-section

(2),––

(i) after clause (e), the following clause shall be

inserted, namely:––

“(ea) the other costs under sub-clause (e) of

clause (23C) of section 5;”;

(ii) after clause (zk), the following clauses shall be

inserted, namely:––

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“(zka)such number of financial creditors and

the

manner of proposing the insolvency

professional, and the form for approving such

insolvency professional by the financial creditors

under clause (e), the persons who shall provide

approval under the proviso to clause (e), the form

for making a declaration under clause (f) of sub-

section (2) of section 54A;

(zkb) the form for obtaining approval from

financial creditors under sub-section (3), and the

persons who shall provide approval under the

proviso to sub-section (3) of section 54A;

(zkc) the other conditions for the base

resolution plan under clause (c), and such

information and documents under clause (d) of

sub-section (4) of section 54A;

(zkd) the form in which the report is to be

prepared under clause (a), such reports and other

documents under clause (b), and such other duties

under cause (c) of sub-section (1), and the manner

of determining the fees under sub-section (3) of

section 54B;

(zke) the form for providing written consent of

the insolvency professional under clause (b), the

form for declaration under clause (c), the

information relating to books of account and such

other documents relating to such period under

clause (d) of sub-section (3) of section 54C;

(zkf) the form and manner for making

application for termination of the pre-packaged

insolvency resolution process under sub-section

(3) of section 54D;

(zkg) the form and manner of making public

announcement under clause (c) of sub-section (1)

of section 54E;

(zkh) the manner of confirming the list of

claims under clause (a), the manner of informing

creditors under clause (b), the manner of

maintaining an updated list of claims under clause

(c), the form and manner of preparing the

information memorandum under clause (g), and

such other duties under clause (i) of sub-section

(2) of section 54F;

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[Part IV—Sec. 4

(zki) such other persons under clause (c), the

manner of appointing accountants, legal or other

professionals under clause (e), such other matters

under sub-clause (iv) of clause (f) and the manner

of taking other actions under clause (g) of sub-

section (3) of section 54F;

(zkj) the manner of determination of fees and

expenses as may be incurred by the resolution

professional under sub-section (6) of section 54F;

(zkk) manner of bearing fees and expenses

under sub-section (7) of section 54F;

(zkl) the form and manner of list of claims and

preliminary information memorandum under sub-

section (1) of section 54G;

(zkm) the conditions under clause (a) of

section 54H;

(zkn) the manner of alteration of the

composition of the committee of creditors under

the proviso to sub-section (1) of section 54I;

(zko) the form and manner of making

application under sub-section (1) of section 54J;

(zkp) the manner of inviting prospective

resolution applicants under sub-section (5) of

section 54K;

(zkq) other conditions under sub-section (6) of

section 54K;

(zkr) the conditions under clause (a) and the

manner of providing the basis for evaluation of

resolution plans and the information referred to in

section 29 under sub-section (7) of section 54K;

(zks) the conditions under the proviso to sub-

section (10) of section 54K;

(zkt) the manner and conditions under sub-

section (11) of section 54K;

(zku) the form and manner of filing application

under the proviso to sub-section (12) of section

54K;

(zkv) other requirements under sub-section

(13) of section 54K;

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(zkw) the form for submission of written

consent under clause (b) of sub-section (2) of

section 54-O;”.

17. In section 240A of the principal Act, in sub-

section (1), after the words “corporate insolvency

resolution

process”,

the

words

“or

pre-packaged

insolvency resolution process” shall be inserted.

Amendment of

section 240A.

Ram Nath Kovind,

President.

Dr. G. Narayana Raju,

Secretary to the Government of India.

(Re-published by Order of the Governor)

A.S. pasupathi,

Additional Secretary to Government,

Law Department.