Stricter rules are in place now for the approval process of resolution plans submitted under the insolvency law, wherein an applicant’s antecedents and credit worthiness will be checked.
The amendments related to the corporate persons resolution process has been made amid rising number of cases being filed under the insolvency law and concerns in certain quarters on whether the promoter of a company under the insolvency process can submit a resolution plan.
“Now prior to approval of a resolution plan, the resolution applicants, including promoters, will be put to a stringent test with respect to their credit worthiness and credibility,” an official release said today.
It is now clear that even promoters can submit resol…
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