Power to make rules for initiating proceedings for coordination and cooperation of corporate debtors of

group 151 (1) Notwithstanding anything to the contrary contained in this Code, the Central Government may, prescribe the manner and conditions for conducting insolvency proceedings under Part II, where these proceedings are initiated against two or more corporate debtors that form part of a group. 25 18 of 2013. (2) Without prejudice to the generality of foregoing provision, such rules may, provide for all or any of the following matters, namely:–– (a) a common Bench for the insolvency proceedings of the corporate debtors that form part of a group and the manner of the transfer of pending proceedings of such corporate debtors to such Bench, and for proceedings under the rules made under this section; (b) coordination between the insolvency proceedings of the corporate debtors that form part of a group, including the coordination between their committee of creditors and interim resolution professionals, resolution professionals, or liquidators; (c) appointment and replacement of a common insolvency professional to facilitate coordination between the insolvency proceedings of the corporate debtors that form part of a group; (d) formation of a committee comprising of the committee of creditors of the corporate debtors that form part of a group; 151 Ins. by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act No. 6 of 2026), sec. 42. Section 42 had not been brought into force by S.O. 2625(E) as at 26-05-2026. Accordingly, Chapter VA and section 59A are enacted but not operative as at that date; the operative Code contains no corresponding Chapter VA or section 59A.

(e) making of an agreement that provides measures to coordinate and synchronise different aspects of the insolvency proceedings of the corporate debtors that form part of a group, which shall be binding on the corporate debtors approving the same including their committees of creditors, and the Adjudicating Authority may issue necessary orders to implement the approved agreement; and (f) treatment of the costs incurred for taking measures to coordinate the insolvency proceedings of the corporate debtors that form part of a group. (3) The rules made by the Central Government under this section may provide that any of the provisions of the Code shall apply with such modifications, as may be required to administer and implement the provisions of this section. Explanation.––For the purposes of this Chapter, the expressions–– (a) “control” includes the right to appoint majority of the directors or other key managerial personnel entitled to manage the affairs of the corporate person or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding, management rights, ownership interest, shareholders agreements, voting agreements, articles of association, limited liability partnership agreements or in any other manner; (b) “group” means two or more corporate debtors that are interconnected by control or significant ownership, and include a holding company, a subsidiary company and an associate company of a corporate debtor, as defined under the Companies Act, 2013; (c) “insolvency proceedings” means the corporate insolvency resolution process and liquidation process under Part II of this Code; (d) “significant ownership” includes the right to exercise twenty-six per cent. or more voting rights. 26 Amendment of section 61. Insertion of new section 64A. Penalty for initiating frivolous orvexatious proceedingsunder Part II. Amendment of section 65. Amendment of section 66. Amendment of section