d .

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A Handboo kb!Y CA CS Munish Bhan ari
21.54
.
. RP and any expenses mcurred by him ,.
actmg as a b . 1or
(b) the fees payable to any pe:son he PPIRP period, subject to su -section (6) of section
conducting the PPIRP dunng t
54F; . d b th RP rn . the business of CD as a going concern Pursuant
. runnmg
(c) anycostsrncurre Ye . fsection54J;
2 0
to an order under sub-sectton ( ) G mment to facilitate the PPIRP; and
(d) any costs incurred at the expen se of the ove
-------- () th t S may be specified . .
e any o er cos s a _ . . from PPICD and endmg on the date on Which
PPIRP period 'PPIRP period' means the penod begi~rnn~ L or sub-section (1) of section 54N, or sub
4 'is as~d by AA
[Sec. 5(23D)) an order under sub-section (I) of sectwn be ·
section (2) of section 540, as the case may ' p

DDl i•1;j k11;61,., a,,.,u.i iHtff f:iii ie1;1PP•;j · . -.- --

1. Eligible . . . .. . be made in respect of a CD classified as a micro, small
An apphcatton for m1t1atmg PPIRP ma~ d Medium Enterprises Development Act
corporate or medium enterprise u/s 7(1) of the Micro, Sma11 an , ,
debtors 2006.

2. Conditions (a) It has committed a default referred to in Sec. 4.

for making (aa) It has not undergone PPIRP / comp1eted CIRP during preceding 3 years.
the (b) It is not undergoing CIRP.
application
(c) No order requiring it to be liquidated has been passed u/s 33.
(d) It is eligible to submit a resolution plan u/s 29A.
(e) (i) The financial creditors of CD, not being its related ~arties, representing not less than
10% in value of the financial debt due to such creditors, have proposed the name of
the insolvency professional to be appointed as RP for conducting the PPIRP of CD.
However, if CD has no financial debt or if all the financial creditors are related
parties, the name of the insolvency professional to be appointed as RP for conducting
the PPIRP of CD shall be proposed by the operational creditors of CD, not being its
related parties, representing not less than 10% in value of the operational debt due to
such creditors.
(ii) The financial creditors of CD, not being its related parties, representing not less than
66% in value of the financial debt due to such creditors, have approved such proposal.
However, if CD has no financial debt or if all the financial creditors are related
parties, the proposal shall be approved by the operational creditors of CD, not being
its related parties, representing not less than 66% in value of the operational debt due
to such creditors.
(f) The majority of the dir~ctors or the majority of partners of CD, as the case may be, have
made a declaration, statmg -
(i) that CD shall file an application for initiating PPIRP within a definite time period not
exceeding 90 days;
(ii) that PPIRP is not being initiated to defraud any person; and
(iii) the na~e of the i~solvency professional proposed and approved to be appointed as
resolut10n profess10nal.
I (g)
The members of CD have passed a special resolution, or at least 314th of the total number
of partners of CD have passed a resolution, as the case may be a · th fi r fan
I application for initiating PPIRP. ' pprovmg e I mg 0