 Good evening, friends, as promised by all of us that the team of Beyond Law CLC and Mr. Manoj Anand, a Chartered Accountant and an IP Specialist, will come with the part 2 of Individual Insolvency Part 2 and we will discuss about the basic concepts, procedures and latest developments in the IBC 2016. We all know the immense knowledge which Mr. Manoj Anand had shared on the previous date of hearing. I am sorry, each date of hearing is such a normal terminology which goes automatically on your speaking. The session was well received and therefore we requested rather than waiting for a long time that Mr. Manoj should share his knowledge. As we all know that Mr. Manoj has explained the basic concepts, procedures and latest developments in his own way. We will keep the part 2 in mind for a little while and we will get a lot of messages from the WhatsApp so that the link and connectivity is there. Just like serials, what we say, till today and till now and what is after that. So today we will share this knowledge, as we said just as Vinit Kothari, a senior advocate in the Supreme Court of India who has been recently designated. He is also a chartered accountant and a former acting Chief Justice of Gujarat High Court and similarly he was the judge from Rajasthan, Karnataka and Madras. We welcome him and we will take his insights also by the end of the session. I will just ask him to unmute himself as Vinit Kothari before we take the session forward. I think he has logged out. Yeah, he was trying to get himself unmuted, he couldn't get it. Or do you, Manoj? Thank you very much. I think hopefully Mr. Vinit Kothari will be joining us very soon. By face, I have been able to recognize Mr. Archie Gupta as well as Smith Kansal also. I don't know how I have been able to recognize. Are you both of you are IP also? Yes, Smith is IP and Mr. Archie Gupta. Sir, I haven't seen you. I am not able to declare it but I remember seeing your face, I might have seen you somewhere. Mukherjee, you are also welcome. So, I start my deliberation with the permission of Mr. Vikas. Sir, Mr. Vikas, let's start. Okay, great, great, great. This is my small introduction. Let me recycle a little bit. I will take one point. I don't unmute anyone because there was a session going on. People watch it on YouTube later. So, we keep on going. We don't welcome everyone. We welcome every participant. We can take them at the end. So, Smith has been a regular follower of Beyond Law CLC for the last two years. And he knows this pattern very well. Or do you, Manoj? Okay, thank you very much. Thank you very much. So, we took 18 slides in the last week. So, basically, I will just take two minutes to tell you about that. I have discussed this with you. When was this presidency? When was this insolvency? When was this? How was this? And what were its essential features? I am just passing. Including, which is a little bit of surface also. E-S-I-R-D also. M-S-I-V Samadhan also. You know, these are all the company tools. But, you know, the main topic was of IBC. And in IBC, we said when was this? When was this applicable? In Section 2, we tried to analyze it a little bit. After that, what is it called? The powers that come from the prisons, the rules, the regulation, the IBBI, the MCO, the central government, we discussed that in the office. And after that, you know, this law is so effective that this law came in December. It came approximately one and a half years ago. But despite all this, I tried to tell you a little bit about the law. If we scale their total, it will run into a few lakhs of crores of rupees. Then I discussed that under what practical circumstances this application or this law we can use for ourselves. You know, I discussed this Lajkumar Jan judgment also and Guruvi Sodi judgment also. And how can we use this presently? I discussed this also. We had given some practical questions that when we file an application, what do we have to do? When we don't file a practical application, the things that we don't need are discussed. I said that at least 25-30 seminars will be available. So at this time, whatever discussion was held, the issues that I thought of sharing with my audience, I had asked them in the form and that we also discussed. Now let's go. Initially, we learned that where this law is applicable, in what situations it is applicable. Now, since we are on advocates and chartered accountants, whenever we have a client, we need to plan for his affairs. In fact, how can we get the best benefit for our clients for personal interest? I will share with you what planning we need to do before either opposing our application if filed against us or if we feel that our clients are there whose application we have to file. I have already told you that in section 94, we shall file the application. In section 95, the creditor will file the application. So let's presume that either the application is filed against us or we are filing the application. So the planning aspect of this, this has been started for a long time. If we look at the maximum cases of personal interest, those who have already started the CRIP, so we need to plan something for the CRIP also. The CRIP means Corporate Insolvency Digestion Process, which in detail I think my sister, Mamta Binani, has told you. I will tell you the points right now. Whenever your CRIP is going on and your client is a personal gunter, your client is a director, you always raise and record objections against the CRIP saying this thing that it is going very cheap. I shall give you the logic for that also, how it will benefit you. If possible, get at least a personal gunter by giving extra benefit, a registered plan by PRA. Meaning there by, if PRA, like MSME's case, then promoters are also permitted. So if you are PRA, PRA means Prospective Resilient Applicant, who is afraid of the company, then try to get rid of your personal liability by making some extra payment in the registered plan in the CRIP. My fourth point is that raise objections against the CRIP and OEC claim as credited by the ARP. Look, your liability will be as much as your ultimate liability, which the company is paying minus the registered plan which has been recovered. Now the registered plan which has been recovered, if the OEC gets the FEC, then the right of the FEC in a particular CRIP will be given by the claim. So the claim amount, there is a lot on it, meaning as an ARP, we have a lot of discussion on how much amount we should accept. For example, let me give you a particular example of financial crisis. In the case of financial crisis, if you suppose the account is NPA, the moment his account becomes NPA, he starts charging his interest in the bank doesn't charge it up in his books of course. He makes a memorandum account, he puts it in the interest. So when he makes a memorandum account, I always take it, please, when you are not showing that profit in your books, why should I be able to pay you? Similarly, in the case of that, many attempts are made like invoices. It is written under the invoices that if you are not paying a particular date, we should charge interest against that. So whenever the OEC claim comes up, along with interest, all this is coming out to be there. So as per law, using a discussion, it satisfies that claim. As a promoter, because directors also come into every COC meeting as an invitee, although they don't have any voting rights. Whenever there is a claim list, it is kept in front of the COC practically. You as a director always raise some objection against it. So now nobody knew that this insolvency would come and by doing this, a person could just maybe not be making the payment. So for this, you can also do a little planning to see what business we are doing. In the coming time, whenever you give a bank guarantee, try to impress to the banker that my liability should be sticked to my network. Instead of whole amount of liability, this practice is very prevalent in western countries. It is also prevalent in Europe. So if we can start dropping this practice and other thing is also, maybe banks start accepting it. Practically, I haven't seen banks accepting it, but once you start, then you can go for it. I have seen that in some courts, this has been held, in some cases, they said to the banker that on what basis, this person's network is worth 2 crore and you have taken this guarantee for 500 crore. On what basis, you have taken this guarantee, but that is all theoretical question. After that, one point, in fact, I think it was the last point, you have made an agreement of personal guarantee, which was to seal the devil's eye. Why I am saying to seal the devil's eye? Because in this, you will get some sort of documents which can save your client. Practically, I will give you an example. In one of our cases, they had an agreement of this type of guarantee. In that guarantee agreement, they had done something like that. They had used some sort of word whereby they said that liability will be joint and fair. So, in my opinion, in that case, at a section 124, I remember, that we shall see later on also, that personal guarantee agreement is not valid. Number one. Number two, try to see the limitation also. If the limitation is expired, then you can get rid of your liability under personal guarantee. I have told you what these plans were during CRIP. Now, you feel that whatever I have told you, whether that planning can be done or not, but you have, that is not in your hands. But what I am going to tell you now is in your hands. So, what is this planning? You will have to do the biggest planning which you have assets. You will not have to plan only your assets. You will have to plan the assets of yours and your family members. When we look at the definition of family members, we will see what they are. Spouse and dependent parents and children are coming. And the assets of their relatives. Why I am saying you this thing, I am telling you this, that ultimately, the recovery will be the same when you plan as a replacement or as a letter on bankruptcy. One thing, when I was doing a lot of these cases, this was the first one. So, I thought, how to save the assets of my relatives. So, I got the best clue of this. Details as prescribed in form A, big application for insolvency, bankruptcy process as prescribed in the respective rules. Yes, meaning here, if we file such a 94th application, or if we file a 94th application, it goes into form A. Form A is very detailed, it should be in form A, that details of assets, details of your enterprise proceedings, details of a lot of other things are also. So, the things that form A are required, the asset part of it, you should try to reduce it and there is a liability part. You should try to increase it. The asset part is understood that what is the benefit of reducing it. What is the benefit of reducing the liability part? I will tell you in detail. Planning to be a personal contractor to a co-operator, if not, Section 2F2G is made applicable. In today's date, these are the reasons that Section 2 is applicable whereby PZ is a personal contractor given against a co-operator. In the other case, Section 2F2G, which is with reference to a partnership firm, other than that, which has other businesses, it is not applicable to them. So, keep this in mind. How can you benefit from this? If your personal guarantee is for a limited period, then you won't be liable after that particular period. Yes. We have COC in the CRIP. The COC in the CRIP is called Committee of Curators. It is an MOC. The members of committee have the same power which is with the COC. So, the powers of the COC are so wide, especially in the case of Switzerland, which also has a lot of other cases. Even Honorable Supreme Court has said that the commercial wisdom of the COC cannot be challenged in any situation. Meaning, the NCLT or NCLT has no right to interfere with any of their commercialism. Similarly, you try to see the creditors, whether they are helpful to you, whether they will obey your saying because a lot of discussion is there, a lot of concessions they can give it to you. So, see to it that you have a planning for your MOC also. Yes. So, NCLT 15 says that there are certain debts for which you are always liable. Meaning thereby, that these are the debts of Asperger, your bankruptcy, your management plan, they always have to pay you. Now, basically, these particular debts are of NCLT 15. So, if your liability is of them, as I told you earlier, you can do any form, ultimately you can come out clean for it. But for these debts, you never come back clean. You have to pay this debt. These are basically out of the preview of the insolvency. If you have any debt like this, then you think for that, before putting an application, these are debts from coal, fine imposed by a coal or tribunal, damages for negligence, fuel sensor, breach of a statutory contractual or other legal obligations, maintainers to any person and any law for the time being in force, to that loan and any other debt as may be prescribed. Now, we will try to do some examples of this. Fine imposed by a coal or tribunal. Say, for example, in NCLT, you don't do any kind of trading, you don't do any kind of trading and you're trying to be knowing more than me. If the court imposes 5,000, 10,000, 15,000 to fine imposed or because of any other reason, any fine is imposed by the court, then you have to pay that thing. For that, you won't get any rest in insolvency. But let's not confuse this fine with a fine like we didn't pay the VAT or income test. In insolvency, you get a fine when we don't pay the TDS as a result of which we get a fine. So that's not a fine included there. Damages for negligence. For negligence, suppose you accidentally hit someone in the accident, let's presume this. And in that, the court says if you give it a compensation, or you get jailed, or a monthly or yearly liability is imposed on you. In fact, this thing is very prevalent in Europe and the other places in the USA. If you hit someone in the car, then the law is like that that you have to pay as much as you can to earn as much as you can. The third one is maintainers to any person for the time being enforced. You get a divorce. So in that case, the court has ordered you to pay for it. You won't get any relief for it. Student loan they have taken this here that many a time they found that a lot of frauds are being committed that people take student loans when it comes to the payment they have to declare their bankruptcy. In fact, they don't have any time to declare student loans. They were doing this thing in this case, if you have taken a student loan then you have to pay for that. As far as any other debt is concerned nothing has been prescribed till date. Yes, application. As I initially told you I repeat this thing Section 60 is which prescribes its jurisdiction. When this law was made it was a very simple fundamental that if a script is going on then your jurisdiction will be NCLT and where your script is going on the NCLT bench will be your jurisdiction. Apart from this everything else will be your DRT. This is something very, very important. Let's presume the situation a limited company is going on in Delhi but the person who stays there has to go fast. In that case if its script is going on then it will be here in Delhi and if you suppose the company's guarantee its script is going on if its script is not going on then in that case it will be shedding out. But with the money as I told you earlier the judgement of Jyotya Supreme Court has come out although it is against the initial BLRC report IT the objective of it is that in case of corporate but in case of personal control the corporate this jurisdiction always where its district office will be there NCLT will be there it means we read that section 2E is applicable until section F and G is implemented at present only personal controls are liable so this NCLT will be there in DRT no applications are going on that means the fees we have to pay fees is quite minimum we have to file section 94 application in form A we have to file form A in form C in form C and A basically the requirements are in C but in C but in A we have to file form C as much detail as available you can give it there is no need to give in fact I give you a very interesting point until the judgement of Honorable Supreme Court we have invited them to NCLT we have kept this question due to jurisdiction there is an issue suppose one person is already applying for DRT after that a company's crypt is added then will that record from DRT be transferred to NCLT or not he very honestly said I can't give the answer but in my opinion DRT and NCLT will jointly sit together and decide where the jurisdiction will come that was the answer I still remember it but I was a little bit against it in my opinion I was very cleared with it section 238 is also not clear which overrides it has specific idea there is a contract the jurisdiction of DRT is a contract or that is more related with the corporate in my opinion the moment it starts this jurisdiction will shift to the NCLT only from DRT but our thought that it failed and Honorable Supreme Court has exceeded even our thought and it simply said in the case of personal gunter jurisdiction will always lie with the NCLT only you can't file an application for DRT or section 94-95 I will tell you briefly what questions are asked list of associates of the gunter bank account details list of gunter immediately family member as on application date number of directorships details regarding gunter given business particulars particulars of debts and etc and these are the all-usual basically in the case of the company you get the information from the NCLT or you have to keep the law but in the case of digital there is no law which specifies that you have to keep the operating record to cover that law makers have thought of that we will give a lot of details this is a farm there is a farm of 15-16 so we have to give a lot of details so that the appointed decision professional can make some details for running of insolvency process against that particular debtor there is some debtor can't meet the application also these are the quite usual things it should not be under start bankrupt fresh start process I will tell you in the future what is it not undergoing any insolvency this is a normal thing or important sections to know since we are liars we should know all these sections these are very very important sections section 2-8 which refines corporate section 5-22 which refines personal contract 5-8 which refines corporate but in this the details have been taken a lot in the act of regulation but it is not defined in fact in the case of Lillitma the advocates also said that this act the regulations or sections act these did not define debtor and debtor has been used at so many places it means that no is not complete but on level supreme argument its definition will also come and then it is said if the definition of act is not complete so you have to see 3-4 acts are there companies are there companies are there one or two more acts are also there you can see this definition but when I did R&D to understand the definition for that definition ultimately we have to rely on our accounting standards that debtor was given that debtor means a person who is liable to pay any money good is taken by him fresh starts section 79 is also very important it is defined that the associates immediate family members as I told you in the beginning that we need to take care for their assets also and where technically associates basically since I am from the CA background we have one accounting standard ES18 section 40AB they both define related parties the definition given to them is the same just to remember it what is bankrupt discharge order is very important discharge order is basically we treat it as a thing which will be our ramban after getting discharge order what is its name thank you sir it is comfortable after getting discharge order what we will do is now he can start his life fresh our section 79 it is in the sub section 2 which deals with associates and employees one thing very important is that the employer is also included there and the employer is also included there meaning thereby particularly if I am working in a relaxed company then my reliance will also be liable for this thing sub section 17 deals with immediate family members which are spouses, dependent children and parents sub section 3 deals with bankruptcy sub section 13 deals with discharge order being there by discharge order under section 92, 119 and 138 or 1 sub section 32 deals with undischarged bank up who has not received the discharge order this is also very important discharge order applicable then it has a lot of policies which I shall discuss with you later on section 82 deals with eligibility eligibility of qualified under section 138 ok I will tell you the fresh start section 80 sub section 2 deals with fresh start and there will be no benefit after this notification reason for that is that this is applicable only for those persons whose gross total income is less than Rs 60,000 who is owning a value officer less than Rs 20,000 and who is qualified that is less than Rs Rs 55,000 and he is not owning a dueling unit I have told you about this but we still have to give the report under section 99 whether that particular person is eligible for fresh start if he is eligible then we cannot go for the treatment plan moratorium now let's they are all aware of moratorium the definition of moratorium in the case of personal contract no one took it this definition when we try to see to it this definition is available only under section 14 which means that whenever the moratorium starts all these suits against me get halted I can't answer any of the assets if there is a procedure in America that also get halted you know if I have any property in my possession for example say you know I am having a rented premises with me land dot can get that thing for me after start of the moratorium similarly in this case I would like to share it with you something very terrible happened what happened is that in the case of companies for example in the case of your telephone companies mobile companies they get some licenses similarly in other places some licenses are there and even if you know initially when it started the government when the moratorium started they couldn't take the license for payment but later on where they said you need to pay to it to keep life many there that moratorium is such a powerful thing it stops everything against you which I have already told you supply of essential services even supply of essential services in the case that will continue they can't discontinue meaning there by there is electricity supply water supply these are 2-3 essential services these are computer related services a moratorium in this case there is one type of moratorium but in this case we have two types of moratorium one is under section 96 another moratorium is under section 101 and 100 now let's see what basically the quality of this moratorium is as soon as we file the application section 96 moratorium starts from data filing of the April 10 its admission no time limit has been prescribed final section 100 as soon as it is ordered application admission it stays for 180 days till the progress of the redevelopment plan whichever is earlier that any legal action or proceeding state and no fresh proceedings also started but there is a big difference between 96 and 100 moratorium when the moratorium is going on you have any assets you can transfer them but when the final moratorium starts you can't transfer alienate, incumber, dispose of assets or legal rights or any beneficial interest this is a something very big difference in the entire moratorium I would like to tell my adogate friends again as soon as you file the application if you have any assets you can send it to a personal contractor but as soon as the final moratorium comes it takes about 3-6 months it takes about a year so after the moment you get the final moratorium or you can't do it it's a final moratorium like section 14 moratorium CRIP or second thing is that it applies to if the partnership is formed in the latest stage if it is notified in section 2FG in that case it will apply to all partners also and it should not apply to the notified transsections that I told you earlier there is no transsection now let's see when we were filing this application what particular difficulties we faced while filing this application I have prepared one or two slides for that also so that the people who want to practice it they should understand what particular difficulty I faced so that they should not face no form prescribed for public notices as per section 102 section 102 says that when you have to give public notice when you have to give public notice it doesn't have a form it has a form A it has a public notice so in that case you are aware of it now we thought that it doesn't have a public notice form so as usual if you go to the IBBA website everyone did the same but in my opinion that was not right approach it should have taken this public notice form it is in bankruptcy so bankruptcy is both over to the this insolvency plan in the case of the region so the form C that we have prescribed modify that form C we should use it for public notice second question is heavy duty has been given for preparation of statement of phase under regulation 10 but no detail is provided by the grantor what basically is there to make a detailed plan it will cost a debtor that he will make his statement of phase statement of phase means that sort of thing is there but the grantor never gives you this detail especially in the case of 94 application and in the case of 94 when the person files the entire paper gets zero what is the answer to this the answer is that the form EAC which you took the IDR's IDR's which you found online based on that you should make a statement of phase to the extent possible duty cost earlier the statement of phase was to make a debtor now we have to make a repayment plan repayment plan means the statement of phase based on that how he will pay the creditors and when he doesn't get the first thing then how will the RP make a repayment plan in that for this repayment plan we have to file report in the second one what happened in my case in my case what I did same problem when I faced it I wrote to the creditors that no assets has been given to me by this thing and as I said I am not able to prepare any repayment plan and there is no use of holding this thing also the creditors are bidding also and on that basis I filed my report under section 104 with the adjudicator's authority when there is nothing for the house I overwrite all those things now what is the decision my application is pending 15th of that date nothing happened it has been postponed further so we need to go further now there is a big problem we have to file report under section 99 we have to file report under section 104 we have to prepare list of creditors we have to prepare statement of phase and detailed plan there is no format available as far as we are present this with the person type we will be able to do it only thing is the more you experience the better you will prepare this application no readymade solution for that is available with me but if someone has to do particular work if someone has to file a case he can always not be personally I may help him what I have done the notice time period prescribed is 14 days under then 7 days under section 107113 what I mean to say is that in the case of meeting this is the time period prescribed which is very difficult to prepare so the best solution for this is as soon as you meet the MOC or committee of creditors take your time for one or two days for intimating to them and for folding all these things this is started asking legal documents legally valid authorization from the applicant debt and favor of RP to ES one new practice has been started form A or B when we file we have to prescribe what we have to do but now NCLT benches have started since a lot of all these documents in my opinion these are not required these are not legal but you need to prepare it if you want your application to be ready do file it stating clearly that it is as per the direction of the judiciary sir I am moving fast a little bit because the entire chapter of Bankruptcy I have to do it so this is a basically CRIP and IPIRP the terminology that people practice for them I have analyzed IPIRP means individuals and partnership from insolvency and registration process so I will share this on YouTube persons who are interested to know little bit in detail they can go for it I am just passing through quickly CRIP and IPIRP have major departures because of the scarcity of time I am just moving doing it fast forward we have done this comparison because we people are quite tuned to CRIP this is the difference between personal insolvency and corporate insolvency and bankruptcy personal bankruptcy and corporate bankruptcy makes a difference so I am just passing all this thing whoever is a deep-rooted student he can go through it yes this is very important there are some assets in personal gunter case section 79 sub section 14 which cannot be used in insolvency meaning thereby all assets will be used for the repayment of the characters which cannot be used for you they have unencumbered tools because and other equipments for employment, business or business meaning thereby if you have one or two assets that can never be sold for recovery of the debtors this is something very small personal ornaments that can't be parted with any quarter with the religious juices government has fixed this in one lakh maximum if you have a jewelry in one lakh which has market value in one lakh that can't be taken from you for the payment of the character unencumbered life insurance policy and pension plans I will give you some attention on this I would like to take care of this thing insolvency that against anything you get amount against any pension plan against any pension you get those can't be used for repayment to the creditors so this is a very, very big relief given to them or to the debtors and if you try to plan your affairs you can plan your affairs in such a way so that there is nothing there you get one house the amount fixed that one house can't be taken from you under this thing the value is 20 lakhs in the case of urban area and 10 lakhs in the case of rural area meaning there why if you have a house then your house can't be taken from you the value of 20 lakhs and 10 lakhs in the case of rural area I have already told you that this has to be there this is basically slightment for the movie profession that for our appointment we need to give caution since most of the audience are advocates they may not be much interested I am just passing through it but if you want to see this I will share my I can share my property with him and if a YouTube also he can have a look on it this is replacement of RP and public notice these are all the procedural aspects the statement of fear the statement of fear what will be the detail that I have taken by this detail what will be the detail that I have taken it there if you you point it as an RP and what does it say that it doesn't co-operate if it doesn't agree then what are the powers that you have these are the meetings basically these meetings are the same as we do in the movie I am just passing through I had made a chart what is the difference between co-operates and non-cooperates what is the jurisdiction for reference sake this is the whole process whatever I have talked about this is the whole process it has been summarized there as far as fees is concerned for doing this work this is the government which has not kept a map they have said that the market forces have left it but if you suppose if you file an RP and its fees the market data is between 5000 to 5000 depending on the strength of the data so that is that I can share with you this is my experience but again it can vary what I am telling you is based on what the fee starts in Delhi now let's start we have only 5-10 grand bankruptcy bankruptcy is the main aspect which we have to understand what it means the reprimand plan which the insolvency possessed it was a pre-emptive bankruptcy its basic objective is that before bankruptcy started against an individual I just tell you, I share with you one thing that this law is highly treated towards personal content if we say what is the objective of a law since individuals are in ordnance then the CRIP is highly treated against creditors this law is highly treated against personal content so if we suppose someone's reprimand plan comes or doesn't come you have done it in 104 then in 114 the court will order you the NCLT will order you so as soon as you order so within 3 months you have a right the debtor can go the creditor can go he can file his bankruptcy application now I will tell you about the application of bankruptcy till today there is not a single application in India the reasons are what we have read about the reprimand plan the practical experience I don't have any practical experience what are its essential features but in bankruptcy what is the law I will share with you this is all given in chapter 4 and chapter 5 of part 2 of the the IBC court the application is in section 121 debtor himself can file under section 122 be accompanied with the courts of the IRP the insolvency the court of insolvency statement of affairs we have terminated the insolvency procedures this is something very important it can't be withdrawn without the consent of jury getting a 30 by creditor under section 123 be complete with the records of the IRP same thing under which there are only 3 sections against which this application can be read section 100 sub section 4 the rejection of insolvency procedures by adjudi getting a 30 when we submit the report of 1999 after that in the report insolvency procedures are not started in that case you can do it section 115 sub section 2 rejection of the registration plan by adjudi getting a 30 we submitted a registration plan to the IRP and the court didn't believe that this registration plan is not law the court will pass an order under section 115 sub section 2 insolvency procedures being this particular gunter is not law the third section is section 118 sub section 3 where it happens that we gave a re-payment plan creditors also agreed adjudi getting a 30 also put this re-payment plan like the registration plan is okay but that re-payment plan said that in 3 years he will give his creditors 500-100 but that re-payment plan the court didn't believe that it was not able to implement in that case also adjudi getting a 30 will order for end of insolvency process with that particular gunter in that case also an application under section for bankruptcy be filed as I said in that the entire moratorium let's divide it into 2 parts one you started insolvency personal PG case insolvency the moment that application filed and till the date of the order by the NCLT that moratorium will be there the moment order from the NCLT comes out to be there that entire moratorium or full moratorium will stop till we file an application under bankruptcy so when we file an application from bankruptcy the entire moratorium under section 124 will start what will happen in this entire moratorium same legal proceedings will be state if against from then entire moratorium against all the partners immediately you have to point to IP who will be here known as R.P. Resolution professional here his name will be bankruptcy trustee BT this similarly has to be pointed if the application of debtor will point the application of debtor will point and if both do not point in this case then adjudicant 30 will point it section 126 accordingly adjudicant 30 was passing this order 14 days but 14 days of 14 months we passed the order so we should be thankful for that order is valid till debtor is discharged the biggest effect of this order the moment this order is application is limited the whole state of the personal gunter shall go to the bankruptcy trustee similarly here everything will go to the bankruptcy BT bankruptcy trustee who has not pointed by the court so these are some reasons that we had read the legislation plan 129.130 public notice you have to file the section of the meeting of cadres similarly similarly we have not done anything I can't tell you what difficulties we face but there is one difference which I will tell you in the slide if bankruptcy application is filed away after that considering everything he had money he had a seat what he paid the cadres after that bankruptcy trustee can apply for the discharge of that particular person under section 138 he can do it under the expiry of one year and under any circumstances he can apply for the discharge from the bankruptcy trustee under the expiry of one year when the application was filed in between 1 year within 7 days of the completion of the acquisition meaning the committee of cadres they got money or they were certified right to the bankruptcy trustee to file this thing under these circumstances the bankruptcy trustee can apply for the discharge but what is the benefit of this discharge order the biggest benefit is all the bankruptcy debt shall not affect the all the bankruptcy debt the discharge shall not be affected one big thing is there the discharge order shall be applicable only for those debts which are part and parcel of this bankruptcy process meaning thereby let's understand this thing with an example meaning thereby there is one the personal gunter or debtor should be paid for this but the bankruptcy proceeding only 3-4 companies or 1-2 companies have filed a claim and no other company has done anything so in that case the discharge will not get 10-10 creditors it will only get 6-7 creditors who have filed their claim how why government has allowed this thing I don't know let's see one debtor he had to pay for the debtor bank owner filed against him fair enough now he had some statutory dues for income tax if the GST income tax doesn't file his application then he doesn't file his claim then he has to use the GST dues no discharge meaning thereby after getting this discharge he can start bankruptcy again whereas in the CRIP when you get this registration plan and liquidation you get all debts from the discharge in this case the debts the part and parcel of your bankruptcy this is a very major difference try to understand it these are discolocations when one person went against the bankruptcy what are the discolocations when the bankruptcy application file till it sees the discharge what handicaps are with him a lot of handicaps are with him which I have noted down the main disqualified under the spectrum of debt is till the time when the GST is filed he can't do his practice he can't do his CAC can't do his IP can't do his ad hoc can't do his ad hoc can't hold any public servant office as for election or local authority can't be a doctor can't get charged of state or take debt no legal action he can't travel over since without the permission of duty getting authority these are the 4 varices which he has to bear when the bankruptcy started against it till the time he sees the discharge so now practically no one's against it it's law is that it's only time but he has to bear all these 4 varices he should be ready during my bankruptcy period I have to bear all this this is all hopefully I've been able to satisfy to all the audience advocate audience individual insolvency there are 2 parts which I have already told you I have dealt with the other part of the bankruptcy so hope you can plan the affairs of your clients whether they want to start the insolvency process or if their case is over how do you have to save yourself or what benefit they have to get in this process and this is all the fees in the bankruptcy will be prescribed it's like a decodition it has a table this is all from my side thank you very much for listening me thank you very much if somebody has a question we can unmute that person if anybody has a question we can ask we can bring down the slide good evening sir thank you for the wonderful insights a very new topic for all of us sir I just want to know a basic idea because 3 discharge waters are enumerated in the law in the law so what is the difference and what are they if you can give a little idea of these 3 different discharge waters these 3 different discharge waters what is the difference in the handicap if you see we can take out this particular section what is the benefit and what is the loss these are the different these are the broadly things there alright thank you sir as far as initial the things are concerned which we saw in the insolvency process there are 3 types of orders which you can start from the bank right you can unmute you can get yourself unmuted tell me tell me sir it is not applicable what we have seen today fresh start process or bankruptcy process but as far as the existing practice which you are doing how far it is applicable to us apparently with the directors as far as the CD is concerned sir this is Bankruptcy it is already notified and as far as fresh start it is not notified which are relevant sections before Bankruptcy before Bankruptcy start the government has given a chance to what do you do through the direction process through the repayment you can get yourself out so as far as particularly things are concerned any application because December 22 it was notified after that the supreme court the main defendant was Anil Ambani and other people who did not allow this law to move forward when it was 6 months honorable supreme court was very quick in that case basically the IBBI was challenged in respective high courts mainly Delhi high court because IBBI is based in Delhi after that the supreme court put all the high courts positions and said we will take a decision on this so they took a decision but after that again a Gurmi Sodi case was challenged and now again honorable supreme court is daunting, stake is all these proceedings when insolvency is getting so stable the bankruptcy is not even starting when it starts but it is applicable it is a law at present but we are not criticizing as such no case has come to us by now about these reasons sir before bankruptcy as you do the cases of Crip you submit the application until section 14 is not ordered it will start from there put in order after 180 days 90 days 30 days so now the 180 days period it has not yet ended so until it has not ended then the bankruptcy will not start what I mean to say is that it is not that it has not started because it does not have time on the repayment plan I do not think that there is no order as far as my knowledge is concerned that there is no order on the individual insolvency today's data personal grantor is covered under which regulation yes we have not asked personal grantors are covered under which regulations there are two regulations for personal grantors there are one rules and one regulation which is prescribed and there is an IBBA regulation the name of the regulation is personal grantors I told you in the beginning if you want to know exactly then I will tell you exactly the name of it the rule of bankruptcy persists and the regulation is personal grantor to corporate data there is an IBBA regulation personal grantor to corporate data that is also specified similarly this is the bankruptcy personal grantor to corporate data I told you exactly this is the question and thank you friends who have connected with me on social media on beyond law CLC's youtube channel on facebook and on zoom meeting and let's hope that you will continue to support us and good speakers will continue to come with me on the aspects of present work of act 1995 and amendments that is by justice Saib Gulla Munchi a former judge from Calcutta High Court do stay connected with us tomorrow at 6pm and on behalf of the team of beyond law CLC we thank Mr. Vanoja Anand who have shared his insights in a way which was very subtle and which could be understood by one and all his slides give the insights in a short and crisp manner which hammers the point in the right way everyone stay connected with us thank you