(1) Till such time the rules of procedure for conduct of proceedings under the Code are notified, the application made under clause (a) of rule 5 shall be filed before the Adjudicating Authority in accordance with rules 20, 21, 22, 23, 24 and 26 of Part III of the National Company Law Tribunal Rules, 2016 made under the provisions of the Companies Act,
2013.
(2) An applicant under these rules shall immediately after becoming aware, notify the Adjudicating Authority of any winding-up petition presented against the financial service provider.
(3) The application under sub-clause (i) of clause (a) of rule 5 shall be made in Form 1 and accompanied by-
(a) a fee of twenty-five thousand rupees;
(b) a written consent and declaration in accordance with Form 2 from the proposed Administrator; and
(c) other documents and records as specified in Form 1.
(4) The application and accompanying documents shall be filed in electronic form, as and when such facility is made available by the Adjudicating Authority:
Provided that till such facility is made available, the applicant may submit the accompanying documents, and wherever they are bulky, in electronic form, in scanned, legible portable document format in a data storage device such as a compact disc or a USB flash drive acceptable to the Adjudicating Authority.
10 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(5) The applicant shall dispatch forthwith, a copy of the application filed with the Adjudicating Authority, by registered post or speed post to the registered office of the financial service provider.
(6) The Adjudicating Authority may permit withdrawal of an application filed under sub-clause (i) of clause (a) of rule 5 before its admission on a request made by the applicant.
7. Liquidation Process.― The provisions of the Code relating to the liquidation process of the corporate debtor shall, mutatis mutandis apply, to the liquidation process of a financial service provider subject to the following modifications, namely: ―
(a) the license or registration that authorises the financial service provider to engage in the business of providing financial services shall not be suspended or cancelled during the liquidation process, unless an opportunity of being heard has been provided to the liquidator;
(b) the Adjudicating Authority shall provide the appropriate regulator an opportunity of being heard before passing an order for ―
(i) liquidation of the financial service provider under section 33, and
(ii) dissolution of the financial service provider under section 54.
8. Voluntary Liquidation Process.― The provisions of the Code relating to voluntary liquidation process of the corporate debtor shall, mutatis mutandis apply, to the voluntary liquidation process of a financial service provider subject to the following modifications, namely :-
(a) the financial service provider shall obtain prior permission of the appropriate regulator for initiating voluntary liquidation proceedings under section 59 of the Code;
(b) the affidavit referred to in clause (a) of sub-section (3) of section 59 shall include a declaration that the permission under clause (a) has been obtained;
(c) the Adjudicating Authority shall provide the appropriate regulator an opportunity of being heard before passing an order for dissolution of the financial service provider under section 59.
9. Insolvency Professional.― (1) For the purpose of these rules, only an Administrator proposed by the appropriate regulator and appointed as such by the Adjudicating Authority shall act as an insolvency professional, interim resolution professional, resolution professional or liquidator, as the case may be.
(2) An Administrator shall have the same duties, functions, obligations, responsibilities, rights, and powers of an insolvency professional, interim resolution professional, resolution professional or liquidator, as the case may be, while acting as such in an insolvency resolution and liquidation proceeding of a financial service provider.
(3) The appointment or replacement of the Administrator may be made by the Adjudicating Authority on an application made by the appropriate regulator in this behalf.
10. Assets of third parties, etc.― (1) For removal of doubts, it is clarified that the provisions of clause (b) of rule 5 and section 14 shall not apply to any third-party assets or properties in custody or possession of the financial service provider, including any funds, securities and other assets required to be held in trust for the benefit of third parties.
(2) The Administrator shall take control and custody of third-party assets or properties in custody or possession of the financial service provider, including any funds, securities and other assets required to be held in trust for the benefit of third parties only for the purpose of dealing with them in the manner, as may be notified by the Central Government under section 227.
Form 1 (See sub-clause (i) of clause (a) of Rule 5) APPLICATION BY APPROPRIATE REGULATOR TO INITIATE INSOLVENCY RESOLUTION PROCESS UNDER THE CODE.
(Under Rule 5 of the Insolvency and Bankruptcy (Insolvency Resolution and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019) [Date] To The National Company Law Tribunal [Address] ¹Hkkx IIµ[k.M 3(i)] Hkkjr dk jkti=k % vlk/kj.k 11 From [Names and addresses of the registered office of the appropriate regulator] In the matter of [name of the financial service provider] Subject: Application to initiate corporate insolvency resolution process [name of the financial service provider] under the Insolvency and Bankruptcy Code, 2016.
Madam/Sir, [Name of appropriate regulator], hereby submit this application to initiate a corporate insolvency resolution process [name of financial service provider]. The details for the purpose of this application are set out below:
Part I PARTICULARS OF APPLICANT 1 Name of appropriate regulator 2 Address of the appropriate regulator 3 Name and address of the person authorised to submit application on its behalf (enclose authorisation) 4 Name and address of person authorised to accept the service of process on its behalf (enclose authorisation) Part II PARTICULARS OF THE FINANCIAL SERVICE PROVIDER 1 Name of the financial service provider 2 Identification number of financial service provider 3 Date of incorporation of financial service provider 4 Nominal share capital and the paid-up share capital of the financial service provider and/or details of guarantee clause as per memorandum of association (as applicable) 5 Address of the registered office of the financial service provider Part III PARTICULARS OF THE PROPOSED ADMINISTRATOR
1. Name, address and email address of the Administrator Part IV PARTICULARS OF DEFAULT Yours sincerely, Signature of person authorised to act on behalf of the financial creditor Name in block letters Position with or in relation to the financial creditor Address of person signing 12 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] Instructions Please attach the following to this application:
Annex I Copies of all documents referred to in this application.
Annex II Written communication by the proposed Administrator to act as the interim resolution professional as set out in Form 2.
Annex III Proof that the specified application fee has been paid.
FORM 2 (See clause (b) of sub-rule (3) of Rule 6) WRITTEN COMMUNICATION BY THE ADMINISTRATOR (Under Rule 6 of the Insolvency and Bankruptcy (Insolvency Resolution and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019) [Date] To The National Company Law Tribunal [Address] From [Name and address of the registered office of the Administrator] In the matter of [name of the financial service provider] Subject: Written communication in connection with an application to initiate corporate insolvency resolution process in respect of [name of the financial service provider] Madam/Sir, In accordance with Rule 6 of the Insolvency and Bankruptcy (Insolvency Resolution and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, I [name of the Administrator], hereby:
(i) agree to appointment as Administrator if an order admitting the present application is passed;
(ii) disclose that I am currently serving as an interim resolution professional / resolution professional / liquidator in [insert number of proceedings] proceedings;
(iii) certify that there are no disciplinary proceedings pending against me with the Board or [insert the name of appropriate regulator];
(iv) affirm that I do not have any conflict of interest in this matter / I have the following interests in the matter:
(Signature of the Administrator) (Name in block letters) [F. No. 30/4/2017 –Insolvency Section] GYANESHWAR KUMAR SINGH, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.
2019-11-15T16:12:09+0530 ALOK KUMAR