[March]Pre-Pack Insolvency Resolution Process

Question 1

Context?

Answer 1

The Government had constituted a sub-committee of Insolvency Law Committee (ILC) under Mr.Sahoo, on pre-pack process -> Committee gave report.

Question 2

Features of pre-pack process?

Answer 2

-the Management of the debtor (i.e. the MSME company) will remain with the previous promoters (A promoter is an individual or organization that helps raise money for some type of investment activity.) while the corporate insolvency resolution process will continue under NCLT.
[Mhnje jya company chi insolvency resolution process suru karaychiye,tya company cha control previous promoters kade rahil]

-It will adhere to a fix time line of 90 days for submission of resolution plan/mechanism and 30 days for its approval by NCLT