What does the 'Insolvency Resolution Process Costs' mean under the Insolvency and Bankruptcy Code, 2016? Elaborate.

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · June 2022
What does the 'Insolvency Resolution Process Costs' mean under the Insolvency and Bankruptcy Code, 2016? Elaborate.

Answer & Explanation:

According to section 5(13) of the Insolvency and Bankruptcy Code, the "insolvency resolution process costs" means: - the amount of any interim finance and the costs incurred in raising such finance; the fees payable to any person acting as a resolution professional; any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern; any costs incurred at the expense of the Government to facilitate the insolvency resolution process; and any other costs as may be specified by the Board.

Topics: Insolvency and Bankruptcy Code (IBC)

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