IBC Practitioners on a Map

ResolutionBazaar

Administrator
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An RP, if the insolvency application is filed personally by the Guarantor or the Creditor, is then appointed by the AA in accordance with Section 97 based on the recommendations or nomination, as the case may be of the Insolvency and Bankruptcy Board of India ("IBBI"). Pursuant to the appointment of the RP, the RP has to examine the application for insolvency and submit a Report ("Report") to the AA recommending that the insolvency application be either admitted or rejected. In comparison with the insolvency application of a corporate debtor, Section 99(1) of the Code mandates that the preliminary assessment on the validity of the insolvency application be made by the RP, rather than the AA.

On perusal of the Report, and on the recommendation of the RP, the AA may either accept or reject the insolvency application. In terms of Section 100 (4) of the Code, in the event that the insolvency application filed by the Guarantor is rejected on the grounds that such application was filed by the Guarantor with the intent to defraud the creditors or the RP, then such order for rejection shall record that the creditors of the Guarantor shall be entitled to file for a Bankruptcy Order in terms of Chapter IV of the Code.

 
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