Point of Comparison Insolvency Bankruptcy

Application Application for insolvency of debtor may be made by the Application for bankruptcy of debtor may be made, by a creditor
debtor himself or creditor/ creditors or through resolution individually or jointly with other creditors or by a debtor in the
profession where amount of default is not less than one following circumstances-
thousand rupees. (a) Insolvency application is rejected by the AA.
(b) Repayment Plan is rejected by the AA.
(c) Repayment Plan came to end prematurely.
Interim- moratorium An interim-moratorium from the date of the application to An interim-moratorium from the date of the application to the
the date of admission of such application. bankruptcy commencement date.
Resolution A resolution professional is appointed for facilitating the A bankruptcy trustee is appointed for facilitating the bankruptcy
Professional insolvency proceeding. proceedings.
Submission of report Resolution professional after examining the application There is no such examination by the bankruptcy trustee.
by Resolution submits a report to AA for approval or rejection of the
Professional application.
Admission rejection AA within 14 days of submission of report by RP pass an AA within 14 days of confirmation or nomination of bankruptcy
of Application order either admitting or rejecting application. trustee pass a bankruptcy order.
Moratorium Moratorium from admission of application to the end of the There is no specific provision relating to moratorium but
period of one hundred and eighty days or on the date the section 128 says that creditor shall not initiate any action against
Adjudicating Authority passes an order on the repayment the property of the bankrupt or commence any suit or other legal
plan under section 114, whichever is earlier. proceedings except with the leave of the Adjudicating Authority
and on such terms as the Adjudicating Authority may impose.
Public Notice and AA issues a public notice within seven days of admission of AA sends notices within ten days of the bankruptcy
Claims from application inviting claims from all creditors within twenty- commencement date to the creditors mentioned in-
Creditors one days from such issue. (a) the statement of affairs submitted by the bankrupt; or
(b) the application for bankruptcy submitted by the
bankrupt
AA issues a public notice within ten days of the bankruptcy
commencement date inviting claims from creditors.
Statement of There is no provision relating to this. Where a bankruptcy order is passed on the application for
financial position bankruptcy by a creditor, the bankrupt shall submit his statement
of financial position to the bankruptcy trustee within seven days
from the bankruptcy commencement date.
Repayment Plan The debtor in consultation with the resolution professional, There is no provision relating to this.
prepare a repayment plan containing a proposal to the
creditors for restructuring of his debts or affairs.
Report of resolution RP submits the repayment plan along with his report on such There is no provision relating to this.
professional on plan to the AA within a period of twenty-one days from the
repayment plan last date of submission of claims.
Summoning of Summoning of meeting of creditors for considering the The bankruptcy trustee doesn’t have such option and shall,
meeting of creditors repayment plan is optional on the recommendations of within twenty-one days from the bankruptcy commencement
RP. Where the resolution professional recommends that a date, issue a notice for calling a meeting of the creditors, to every
meeting of the creditors is not required to be summoned, creditor of the bankrupt.
reasons for the same shall be provided.
Conduct of the In the meeting of the creditors, the creditors may decide to The bankruptcy trustee will be the convener of the meeting of the
meeting of creditors approve, modify or reject the repayment plan. The RP shall creditors and decide the quorum for the meeting of the creditors,
ensure that if modifications are suggested by the creditors, and conduct the meeting only if the quorum is present.
consent of the debtor shall be obtained for each The Committee of Creditor is established.
modification.
There is no requirement to establish the Committee of
Creditors.
Approval of The repayment plan or any modification to the repayment There is no provision relating this.
repayment plan by plan shall be approved by a majority of more than three-
creditors fourth in value of the creditors present in person or by proxy
and voting on the resolution in a meeting of the creditors.
Report of meeting of The RP shall prepare a report of the meeting of the creditors There is no provision relating this.
creditors on on repayment plan.
repayment plan
Order of The Adjudicating Authority shall by an order approve or There is no provision relating this.
Adjudicating reject the repayment plan on the basis of the report of the
Authority on meeting of the creditors submitted by the resolution
repayment plan professional
Implementation and The RP supervises the implementation of the repayment The bankruptcy trustee conducts the administration and
supervision of plan. distribution of the estate of the bankrupt in accordance with the
repayment plan provisions of Chapter V.
Completion of The RP shall within fourteen days of the completion of the The bankruptcy trustee shall convene a meeting of the committee
repayment plan repayment plan, forward to the persons who are bound by of creditors on completion of the administration and distribution
the repayment plan, a notice that the repayment plan has of the estate of the bankrupt.
been fully implemented. The bankruptcy trustee shall also provide the committee of
creditors with a report of the administration of the estate of the
bankrupt in the meeting of the said committee.
The committee of creditors shall approve the report submitted by
the bankruptcy trustee within seven days of the receipt of the
report and determine whether the bankruptcy trustee should be
released or not.
Repayment plan A repayment plan shall be deemed to have come to an end There is no provision relating this.
coming to end prematurely if it has not been fully implemented in respect
prematurely of all persons bound by it within the period as mentioned in
the repayment plan. The debtor or the creditor, whose claims
under repayment plan have not been fully satisfied, shall be
entitled to apply for a bankruptcy order.
Discharge order On the basis of the repayment plan, the RP shall apply to the The bankruptcy trustee shall apply to the Adjudicating Authority
AA for a discharge order in relation to the debts mentioned for a discharge order –
in the repayment plan and the AA may pass such discharge (a) on the expiry of one year from the bankruptcy
order. commencement date; or (b) within seven days of the approval of
the committee of creditors of the completion of administration of
the estates of the bankrupt, where such approval is obtained prior
to the period mentioned in clause (a).