Section 19 of The Insolvency and Bankruptcy Code, 2016. in hindi
- (1)The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the interim resolution professional as may be required by him in managing the affairs of the corporate debtor.
- (2)Where any personnel of the corporate debtor, its promoter or any other person required to assist or cooperate with the interim resolution professional does not assist or cooperate, the interim resolution professional may make an application to the Adjudicating Authority for necessary directions.
- (3)The Adjudicating Authority, on receiving an application under sub-section (2), shall by an order, direct such personnel or other person to comply with the instructions of the resolution professional and to cooperate with him in collection of information and management of the corporate debtor.
Summary
- Promoters, personnel, and managers of the company must extend all assistance and cooperation to the interim resolution professional.
- Any person who has been associated with the management or has been engaged in a contract for service with the company is also bound to cooperate.
- If cooperation is refused, the interim resolution professional can apply to the National Company Law Tribunal for a compliance direction.
- The National Company Law Tribunal is mandated to order uncooperative persons to comply with the instructions of the professional.
- All duties of cooperation under this section apply equally to the subsequent resolution professional who takes over the process.
Practical examples
FAQ
1. Who is required to cooperate with the interim resolution professional under Section 19 of the Insolvency and Bankruptcy Code, 2016?
Under Section 19 of the Insolvency and Bankruptcy Code, 2016, any person who is or has been a personnel, promoter, associated with the management, or engaged in a contract for service with the corporate debtor must cooperate.
2. What can the interim resolution professional do if managers refuse to cooperate under Section 19 of The Insolvency and Bankruptcy Code, 2016?
Under Section 19 of The Insolvency and Bankruptcy Code, 2016, the interim resolution professional can file an application to the Adjudicating Authority seeking directions for compliance.
3. Does the duty to cooperate under Section 19 of the Insolvency and Bankruptcy Code, 2016, apply to the final resolution professional?
Yes, the explanation to Section 19 of the Insolvency and Bankruptcy Code, 2016, clarifies that references to the interim resolution professional also include the final resolution professional.
4. Can the Adjudicating Authority order an uncooperative promoter to comply under Section 19 of the Insolvency and Bankruptcy Code, 2016?
Yes, under Section 19 of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority, on receiving an application, shall order the uncooperative person to comply with the instructions of the professional.
Test yourself
Q1.Under Section 19 of The Insolvency and Bankruptcy Code, 2016, which of the following groups is NOT obligated to cooperate with the interim resolution professional?
Q2.Under Section 19 of The Insolvency and Bankruptcy Code, 2016, what action can the interim resolution professional take if a former director refuses to share ledger access?
Q3.Under Section 19 of The Insolvency and Bankruptcy Code, 2016, who can the Adjudicating Authority direct to comply with the instructions of the interim resolution professional?
Q4.Under Section 19 of The Insolvency and Bankruptcy Code, 2016, the rules of cooperation apply to which of the following professionals?