Page 82 - GSTL_18th June 2020_Vol 37_Part 3

296 GST LAW TIMES [ Vol. 37
(f) details of guarantees that have been given in relation to the
debts of the corporate debtor by other persons, specifying
which of the guarantors is a related party;
(g) the names and addresses of the members or partners holding
at least one per cent stake in the corporate debtor along with
the size of stake;
(h) details of all material litigation and an ongoing investigation or pro-
ceeding initiated by Government and statutory authorities;
(i) the number of workers and employees and liabilities of the
corporate debtor towards them;
(j) ***
(k) ***
(l) other information, which the resolution professional deems
relevant to the committee.
27. Another very important function of the resolution professional is to
collect, collate and finally admit claims of all creditors, which must then be
examined for payment, in full or in part or not at all, by the resolution Ap-
plicant and be finally negotiated and decided by the Committee of Credi-
tors.
30. Accordingly, Regulation 38 then deals with the mandatory contents of
a resolution plan, making it clear that such plan must contain a provision
that the amount due to operational creditors shall be given priority in pay-
ment over financial creditors-see Regulation 38(1). Such plan must also in-
clude provisions as to how to deal with the interests of all stakeholders in-
cluding financial creditors and operational creditors of the corporate debt-
or-Regulation 38(1A). It must then provide for the term of the plan, man-
agement and control of the business of the corporate debtor during such
term, and its implementation. It must also demonstrate that it is feasible
and viable, and that the resolution Applicant has the capability to imple-
ment the said plan. Regulation 38, being important, is set out hereinbelow :
38. Mandatory contents of the resolution plan
(1) The amount due to the operational creditors under a resolu-
tion plan shall be given priority in payment over financial
creditors.
(1A) A resolution plan shall include a statement as to how it has
dealt with the interests of all stakeholders, including financial
creditors and operational creditors, of the corporate debtor.
(2) A resolution plan shall provide :
(a) the term of the plan and its implementation schedule;
(b) the management and control of the business of the cor-
porate debtor during its term; and
(c) adequate means for supervising its implementation.
(3) A resolution plan shall demonstrate that -
(a) it addresses the cause of default;
(b) it is feasible and viable;
(c) it has provisions for its effective implementation;
(d) it has provisions for approvals required and the time line
for the same; and
(e) the resolution Applicant has the capability to implement
the resolution plan.

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