Page 81 - GSTL_18th June 2020_Vol 37_Part 3

2020 ] ULTRA TECH NATHDWARA CEMENT LTD. v. UNION OF INDIA 295
and operational creditors, provided the amount of their aggregate dues is
not less than 10% of the entire debt owed. Like the duties of the interim res-
olution professional Under Section 18 of the Code, it shall be the duty of the
resolution professional to preserve and protect assets of the corporate debt-
or including the continued business operations of the corporate debtor - see
Section 25(1) of the Code. For this purpose, he is to maintain an updated list
of claims; convene and attend all meetings of the Committee of Creditors;
prepare the information memorandum in accordance with Section 29 of the
Code; invite prospective resolution applicants; and present all resolution
plans at the meetings of the Committee of Creditors - see Section 25(2)(e) to
(i) of the Code. Under Section 29(1) of the Code, the resolution professional
shall prepare an information memorandum containing all relevant infor-
mation, as may be specified, so that a resolution plan may then be formu-
lated by a prospective resolution applicant. Under Section 30 of the Code,
the resolution Applicant must then submit a resolution plan to the resolu-
tion professional, prepared on the basis of the information memorandum.
After this, the resolution professional must present to the Committee of
Creditors, for its approval, such resolution plans which conform to the con-
ditions referred to in Section 30(2) of the Code-see Section 30(3) of the Code.
If the resolution plan is approved by the requisite majority of the Commit-
tee of Creditors, it is then the duty of the resolution professional to submit
the resolution plan as approved by the Committee of Creditors to the Ad-
judicating Authority-see Section 30(6) of the Code.
23. The aforesaid provisions of the Code are then fleshed out in the 2016
Regulations. Under Chapter IV of the aforesaid Regulations, claims by op-
erational creditors, financial creditors, other creditors, workmen and em-
ployees are to be submitted to the resolution professional along with proofs
thereof-see Regulations 7 to 12. Thereafter, under Regulation 13, the resolu-
tion professional shall verify each claim as on the insolvency commence-
ment date, and thereupon maintain a list of creditors containing the names
of creditors along with the amounts claimed by them, the amounts admit-
ted by him, and the security interest, if any, in respect of such claims, and
constantly update the aforesaid list-see Regulation 13(1).
25. After receipt of the resolution plans in accordance with the Code and
the Regulations, the resolution professional shall then provide the fair value
and liquidation value to every member of the Committee of Creditors-see
Regulation 35(2). Regulation 36 is important as it forms the basis for the
submission of a resolution plan. The information memorandum, spoken of
by this regulation, must contain the following :
(a) assets and liabilities with such description, as on the insolven-
cy commencement date, as are generally necessary for ascer-
taining their values.
Explanation : “Description” includes the details such as date of
acquisition, cost of acquisition, remaining useful life, identifi-
cation number, depreciation charged, book value, and any
other relevant details.
(b) the latest annual financial statements;
(c) audited financial statements of the corporate debtor for the
last two financial years and provisional financial statements
for the current financial year made up to a date not earlier
than fourteen days from the date of the application;
(d) a list of creditors containing the names of creditors, the
amounts claimed by them, the amount of their claims admit-
ted and the security interest, if any, in respect of such claims;
(e) particulars of a debt due from or to the corporate debtor with
respect to related parties;
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