Discuss on the provisions of Management of affairs of corporate debtor during the pre-packaged insolvency resolution, also brief the powers of Committee of Creditors in vesting the Management of Corporate Debtor in pre-p

Section 54H of the Insolvency & Bankruptcy Code, 2016 provides following provisions with respect to the management of affairs of corporate debtor during the pre-packaged insolvency resolution process period- a) the management of the affairs of the corporate debtor shall continue to vest in the Board of Directors or the partners, as the case may be of the corporate debtor, subject to such conditions as may be specified: b) the Board of Directors or the partners, as the case may be, of the corporate debtor, shall make every endeavor to protect and preserve the value of the property of the corporate debtor, and manage its operations as a going concern; and c) the promoters, members, personnel and partners, as the case may be, of the corporate debtor, shall exercise and discharge their contractual or statutory rights and obligations in relation to the corporate debtor, subject to the provisions of this chapter and such other conditions and restrictions as may be prescribed. Section 54J of the Insolvency & Bankruptcy Code, 2016 prescribe the following provisions in respect to power of CoC in vesting management of corporate debtor with resolution professional: (1) Where the committee of creditors, at any time during the pre-packaged insolvency resolution process period, by a vote of not less than sixty-six per cent of the voting shares, resolves to vest the management of the corporate debtor with the resolution professional, the resolution professional shall make an application for this purpose to the Adjudicating Authority, in such form and manner as may be specified. (2) On an application made under sub-section (1), if the Adjudicating Authority is of the opinion that during the pre-packaged insolvency resolution process- (a) the affairs of the corporate debtor have been conducted in a fraudulent manner; or (b) there has been gross mismanagement of the affairs of the corporate debtor, It shall pass an order vesting the management of the corporate debtor with the resolution professional.