Showing posts with label Latest Updates. Show all posts
Showing posts with label Latest Updates. Show all posts

Saturday, January 11, 2020

Commercialization of Intellectual Property Rights and its Key Business Concerns



Topic:Commercialization of Intellectual Property Rights and its Key Business Concerns

INTRODUCTION:-


As you all know Copyrights Trademarks Patents etc are buzzing words of this decade.To elaborate IPR in India are broadly classified in five categories that is Copyright, Trademark, Patent, Designs, Geographical indication


The biggest opportunity/advantage as well as the threat in IPR is that it is an intangible asset.
 For example if I want to own a flat in Mumbai it is quite easy to search for the same, value the property and purchase it. 





Almost all of us know the legalities involved in buying and selling a flat but frankly how many of us really do know all of the above mentioned procedures for say Patents? 
So today is the need of an hour to throw the light on the various processes in making IPR marketable . 

What is Commercialisation of IPR? 

In its Layman sense commercialization of IPR refers to making your IPR marketable and earning profits through it. In India if we discuss commercialization of IPR it is like opening a Pandora's box – One thing leads to many complications. 
So I would like to pinpoint the major steps in simple language. 

Let's go back to our earlier example :- 

Imagine you have a piece of land and you want to do business from it so the options available to you is to sell the land as it is 



2)Another option is to construct a shop on land and give the shop on rent. 





Similarly if you own IPR you can either transfer it to someone else as it is or you can develop marketable product through joint venture or collaborations and commercially exploited to earn rewards. 


Having discussed this now let us enter into a bit technical zone regarding commercialization of IPR . 


WAYS IN WHICH IPR CAN BE COMMERCIALIZED

First of all let's discuss the ways in which IPR can be exploited commercially. It is certainly not easy to manage IP commercialization as success of whole process depends upon various endogenous and exogenous factors like:
-business objectives, 
-Type of IPR
-capital resources etc. 

Three Major Ways for IP Commercialization:-
Broadly IPR commercialization can be achieved through three ways.

1. Commercialization directly by owner of IP  
2. By Assignment 
3. By building a business partnerships . 

All these ways have their own pros and cons let's discuss them in a bit detail. 

Commercialization directly by owner of IP:




As mentioned IPR can be commercially exploited by owner himself . This approach comes with best returns as well as it is most risky because being the individual owner of IP and converting them into marketable product or service is altogether a different game . 

The factors to be considered before undertaking this are how an IPR you own can be developed to a desired product in market ,then time included ,the funding required and how to get it . 

Moreover the owner has to keep focus of all the process from view of market. Once you find the product in the market and it is desired by customers then your returns are going to be enormous. 
  
The major setback in this type of commercialization is availability of necessary financial and technical capabilities to take your product to market by yourself 

For example in biotechnology and nanotechnology the major market is international market. Thus in many situations and organisation owning IPR will need commercial partners to develop a product 

Also the time gap between production and generation of sales revenue is quite long. Thus it puts pressure on financial position of IP owner. 

so it is clear from above discussion that on one hand this way of marketing IPR can give best returns but if not successful at can lead to enormous financial losses to IP owner. 

2) Assignment:




Second way to commercialize IPR is by assignment. In this process IPR owner transfers all or any part of his rights.The owner of IPR assigns the right to use IPR to certain organisation who will develop , produce and market the product or services 

In this process the reward of owner is limited to the amount of royalty he gets from the organisation. 

The Owner is not concerned with the profits or losses owned by organisation. His amount of royalty is fixed. 

The major problem around this structure is to fix the amount of royalty .In India it is quite difficult to assess valuation of IPR ,we will have deep insight on valuation aspect in later part of a discussion now let us restrict our self to the point that valuation of IPR is crucial issue in assignment of IPR. 

Next issue to be considered while assigning IPR is to ensure integrity of counter Party

For example you are author of novel and have copyright on it, you have assigned the copyright to publisher @ 50 rupees per copy sold of book .

Now publisher may manipulate the data regarding number of copies sold and therefore financially hitting your royalty. 


Building a Business Collaborations :- 

Now let us take into consideration the last way to commercialize ip i.e building a business collaborations .  

In this strategy IPR owner enters into business agreement with third party who play role of an investor and helps in converting IP into marketable product or services . 

This concept is quite new in India IP owner generally prefers to design product by himself or directly endorses it to other by way of assignment. 

But for long term sustainability partnering of IP owner and corporate houses would play an important role  

Other important aspect related to Commercialization of IPR.

Having discussed first part of our discussion on commercialisation of IPR let's pave our way to some other important aspect related to commercialization of IPR. 

Valuation: 


   
The paradox of valuation is that most corporates are aware of potential value of their IP but invariably neglect to determine its value with accuracy . As rightly said by Peter Drucker “if you cannot measure it you cannot manage it” 

Investors can optimise their IP portfolios and increase their returns with more realistic valuations. Various approaches to determine IP valuation replacement cost approach, market value approach, fair value approach and tax valuation approach. 

Under these approaches and IP valuation will assist in making informed decisions concerning IP development or acquisitions 


IP AUDIT:


Next point here is IP audit the first and foremost objective of IP audit is to ascertain the existence of IP.  An IP audit should identify all the IP generated by particular department of an organisation 

IP DUE DILIGENCE:

■IP due diligence generally seeks to: 

■Identify and locate IP assets, and then assess the nature and scope of the IP to evaluate their benefits and allocate risks associated with the ownership or use of the relevant IP assets; in particular, it seeks to determine whether the relevant IP is free of encumbrances for its intended business use(s). 

■Identify problems in and barriers to the transfer, hypothecation or securitization of the IP assets under consideration. 

■Identify and apportion between the two parties the expenses incident to the transfer of IP assets under consideration

 IPR ENFORCEMENT:

In this penultimate leg of discussion I would like to draw your attention to the most important aspect as well as the concern in IPR commercialization i.e IPR enforcement .

By entering into IP transaction one of the most important assessment to be made relates not only to validity and market relevance of asset but also capacity to protect and enforce IP .

Once new product is offered for sale in market and is successful in the market it is likely that competitors will attempt to make competing cheaper product with identical or similar features. 

This may lead to undue financial pressures. It is therefore important that parties have recourse to effective enforcement of IPR 
  
COMPETITION LAW V/S IPR LAW: 

            v/s

Relationship between competition law in India and intellectual property law : 

Often these laws are seen conflicting with one another. On one hand it is necessary to create monopolies under intellectual property law to encourage innovation and on the other hand competition law seeks to prevent Monopoly but in reality these laws of complementary rather than conflicting 

Because both laws have same fundamental goals of 
1) promoting fair competition and 
2) promoting innovation. 

For example of pharmaceutical company comes up with medicine for cancer so it is very obvious that other company will also come up with similar type of medicine accordingly there will be sustainable competition 


CONCLUSION: 

To conclude I would like to say that major lacunae in commercialization of IPR in India to the extent we want is lack of professionals in this field . 

Also one of the major setback we have in India is we have fragmented structure of IPR laws i.e we have Copyright Act, Trademark Act , Designs Act, Geographical Indication Act. 

If we have uniform IP laws just like how we have Insolvency and Bankruptcy code 2016 this fragmentation will not be there and it will be much clearer to understand as well as to implement it on a large scale. 

As a lawyer we are proficient to be able to guide our client write from registration of IPR , commercializing it , protecting it and providing necessary guidelines regarding infringement of IPR and other cases .A lawyer as a professional has a huge opportunity in IPR. 

In coming 5 to 10 years IPR will be huge demand in country as well as in the world 

Author: Richa Phale

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Thursday, August 15, 2019

QUALIFICATION AND EXPERIENCE REQUIRED FOR BEING AN ARBITRATOR UNDER NEW ARBITRATION AND CONCILIATION AMENDMENT ACT 2019




INTRODUCTION:-
Arbitration is most popular form of Alternate Dispute Resolution which is widely used by Individuals and Businesses to settle the disputes instead of pursuing Litigation which is a lengthy ,time consuming process. When Arbitration is selected as means to resolve the conflict, the function of Arbitrator is a very crucial one.

ROLE OF ARBITRATOR:
The role of arbitrator is to hear arguments, examine the evidence and testimonies of  disputing parties and make a binding decision (known as an ‘’Award’’) for settling the disagreements. The advantage of arbitration is that it is less costly affair as compared to litigation.Furthermore the arbitration proceedings remain confidential and private causing no reputational loss and financial harm to the disputing parties.

QUALIFICATIONS OF ARBITRATORS:-
Under Old Arbitration and Conciliation Act 1996, or Arbitration and Conciliation Amendment Act 2015, the qualification for Arbitrators were not specifically defined. Every person who is of age and sound mind  fulfilling following general requisites i.e: -
a) Independence and Impartiality
b) No conflict of Interest,
could be appointed as arbitrator. 

The Arbitration and Amendment Act 2019 received the assent of the President on the 9th August, 2019. Under the new “Arbitration and Conciliation Amendment Act 2019, the Experience and  Qualifications for a  person to be appointed as Arbitrator has been specifically defined in a newly added Eighth schedule.

QUALIFICATIONS AS SPECIFIED IN EIGHT SCHEDULE :-
A person shall not be qualified to be an arbitrator unless he—

(i) is an ADVOCATE having ten years of practice experience as an advocate; 

(ii) or  is a CHARTERED ACCOUNTANT having ten years of practice experience as a chartered accountant; or

(iii) is a COST ACCOUNTANT having ten years of practice experience as a cost accountant;

(iv) Or  is a COMPANY SECRETARY having ten years of practice experience as a company secretary; or

(v) has been an officer of the INDIAN LEGAL SERVICE; or

(vi)   has been an officer with LAW DEGREE having ten years of experience in the legal matters in the Government, Autonomous Body, Public Sector Undertaking or at a senior level managerial position in private sector; or

(vii) has been an officer with ENGINEERING degree having ten years of experience as an engineer in the Government, Autonomous Body, Public Sector Undertaking or at a senior level managerial position in private sector or self-employed; or

(viii) has been an officer having senior level experience of ADMINISTRATION in the Central Government or State Government or having experience of senior level management of a Public Sector Undertaking or a Government company or a private company of repute; 

(ix) is a person, in any other case, having educational qualification at degree level with ten years of experience in scientific or technical stream in the fields of telecom, information technology, Intellectual Property Rights or other specialised areas in the Government, Autonomous Body, Public Sector Undertaking or a senior level managerial position in a private sector, as the case may be. 

CONCLUSION:
The capacity to be an Arbitrator is now specifically linked to the qualifications and Experience under the new Arbitration and Conciliation Amendment Act 2019.



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Sunday, August 11, 2019

ICAI ANNOUNCEMENT- Registration for practical training assessment test on 8th September 2019

Registration for Practical Training Assessment Test on September 8, 2019

Date of Notification : 08.08.2019

Notes for Information and Guidance for Applicants
Online Application Form Starts at 12:00 noon on Friday, 9th August, 2019
Last Date : Friday, 16th August, 2019 midnight
Candidates are advised to carefully read, understand and follow the instructions while filling in the Form and retain the same for future reference. :-
1. Date of Examination :-
8th September, 2019
2. Examination Centres :-
The Institute reserves its right to withdraw any centre and / or the Zone and / or transfer all or a part of the candidates of a zone to another zone at any stage without assigning any reason. Once a city is opted for, no change is allowed under any circumstances.
3. How the application form should reach the Institute?
The application form is only to be submitted online. There is no need to submit any print out of the application form at the office of the Institute. However, you may keep the copy for your own records at least till the release of admit cards.
4. Eligibility
The students who have completed their 1st / 2nd year of practical training during 1st October, 2018- 30th June, 2019 can register for this test on September 8, 2019.
The students who have appeared in earlier test(s) and wish to improve their performance/ grade can re-appear in this test. Similarly, the students who have registered for earlier test(s) but could not appear due to some reason, can also register.
5. Issuance of Admit Card
The Admit Card for the test will be available on this portal 5 days before the test date and candidates are requested to take a printout of the same. No physical admit cards will be issued.
6. Details of Test
This will be an Objective Type MCQ based examination of 75 marks for 1st Level and 100 marks for 2nd Level. There will be no negative marking.
Questions on Current Affairs in September 8, 2019 test would be taken from the News Updates published in the June, July and August, 2019 issues of Students’ Journal.
There would be no reading time. Candidates should reach examination centre 30 minutes prior to the examination. Late arrival of candidates will not be permitted. Candidates will not be permitted to leave the examination hall till the conclusion of the test.
7. Grading System
Students will be assigned grades based on their performance in the assessment as below:
80% and above – A grade
60% and above but below 80% – B grade
40% and above but below 60% – C grade
Below 40% – D grade
8. Examination Fee
A candidate will not be required to pay the test fee when he/she applies for the test for the first time. If he/she applies for the test for the second/ third time for improvement in the grade, he/she will be required to submit Rs.200 through online mode, for which details will be notified later.
9. For any/all dispute(s) relating to the Test conducted by the ICAI, the Courts at Delhi shall have exclusive jurisdiction.
NOTE : In the event of furnishing any incorrect information / misrepresentation, the application shall become invalid and no correspondence in this regard shall be entertained.
HOW TO FILL UP ONLINE APPLICATION FORM
Step – 1: Login to the portal
The applicant shall visit the website https://pttest.icai.org/, Click on Login link on the home page and enter his/her Student Registration number along with Date Of Birth as per ICAI records. These details will be validated with our database of candidates.
In case these details are not validated, the applicant will not be able to register for the examination.
The applicant will fill the details and upload the photograph and Signature. Uploading of image as jpeg / jpg files is mandatory. The size of image should not be more than 50KB. Please do not include dots in the name of files (eg. Incorrect naming A.P.Kumar.jpg, Correct naming APKumar.jpg) Click here to know more about cropping of scanned files.
Step – 2: The candidates are advised to check the application status through the link “Login” to check whether the application has been captured successfully by the portal.
10. Declaration of result
The result will be available on this portal only. Candidates are advised in their own interest to print the same for their record. No separate statement of grades will be issued.

Source: ICAI



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Insolvency and Bankruptcy Code (Amendment) Act, 2019- Table of Amendments .


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INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ACT, 2019

Act 26 of 2019 dated 5th August 2019 issued by Ministry of Law and Justice

An Act further to amend the Insolvency and Bankruptcy Code, 2016.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:

Short title and commencement.

1. (1) This Act may be called the Insolvency and Bankruptcy Code (Amendment) Act, 2019.

 (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Amendment Sections
Before Amendment
Particulars of Amendment
After Amendment
S.5 (26)
(26) "resolution plan" means a plan proposed by resolution applicant for insolvency resolution of the corporate debtor as a going concern in accordance with Part II;
The following Explanation shall he inserted, namely:-
"Explanation.-For the removal of doubts, it is hereby clarified that a resolution plan may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger;".
"resolution plan" means a plan proposed by resolution applicant  for insolvency resolution of the corporate debtor as a going concern in accordance with Part II;
"Explanation.-For the removal of doubts, it is hereby clarified that a resolution plan may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger;".
 S.7(4)
The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor under sub-section (3).
the following proviso shall be inserted, namely:-
"Provided that if the Adjudicating Authority has not ascertained the existence of default and passed an order under sub-section (5) within such time, it shall record its reasons in writing for the same.".
The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor under sub-section (3).
Provided that if the Adjudicating Authority has not ascertained the existence of default and passed an order under sub-section (5) within such time, it shall record its reasons in writing for the same.".
S.12(3)
 On receipt of an application under sub-section (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within one hundred and eighty days, it may by order extend the duration of such process beyond one hundred and eighty days by such further period as it thinks fit, but not exceeding ninety days:
Provided that any extension of the period of corporate insolvency resolution process under this section shall not be granted more than once.
After the proviso, the following provisos shall be inserted, namely:-
Provided further that the corporate insolvency resolution process shall mandatorily be completed within a period of three hundred and thirty days from the insolvency commencement date, including any extension of the period of corporate insolvency resolution process granted under this section and the time taken in legal proceedings in relation to such resolution process of the corporate debtor:
Provided also that where the insolvency resolution process of a corporate debtor is pending and has not been completed within the period referred to in the second proviso, such resolution process shall be completed within a period of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019.".
On receipt of an application under sub-section (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within one hundred and eighty days, it may by order extend the duration of such process beyond one hundred and eighty days by such further period as it thinks fit, but not exceeding ninety days:
 Provided that any extension of the period of corporate insolvency resolution process under this section shall not be granted more than once.
Provided further that the corporate insolvency resolution process shall mandatorily be completed within a period of three hundred and thirty days from the insolvency commencement date, including any extension of the period of corporate insolvency resolution process granted under this section and the time taken in legal proceedings in relation to such resolution process of the corporate debtor:
Provided also that where the insolvency resolution process of a corporate debtor is pending and has not been completed within the period referred to in the second proviso, such resolution process shall be completed within a period of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019.".
25A(3)
 The authorised representative shall not act against the interest of the financial creditor he represents and shall always act in accordance with their prior instructions: Provided that if the authorised representative represents several financial creditors, then he shall cast his vote in respect of each financial creditor in accordance with instructions received from each financial creditor, to the extent of his voting share:
Provided further that if any financial creditor does not give prior instructions through physical or electronic means, the authorised representative shall abstain from voting on behalf of such creditor.
after sub-section (3), the following sub-section shall be inserted, namely:-
"(3A) Notwithstanding anything to the contrary contained in sub-section (3), the authorised representative under sub-section (6A) of section 21 shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cent. of the voting share of the financial creditors he represents, who have cast their vote:
Provided that for a vote to be cast in respect of an application under section 12A, the authorised representative shall cast his vote in accordance with the provisions of sub-section (3).".
  The authorised representative shall not act against the interest of the financial creditor he represents and shall always act in accordance with their prior instructions: Provided that if the authorised representative represents several financial creditors, then he shall cast his vote in respect of each financial creditor in accordance with instructions received from each financial creditor, to the extent of his voting share: Provided further that if any financial creditor does not give prior instructions through physical or electronic means, the authorised representative shall abstain from voting on behalf of such creditor.
"(3A) Notwithstanding anything to the contrary contained in sub-section (3), the authorised representative under sub-section (6A) of section 21 shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cent. of the voting share of the financial creditors he represents, who have cast their vote:
Provided that for a vote to be cast in respect of an application under section 12A, the authorised representative shall cast his vote in accordance with the provisions of sub-section (3).".
30(2)(b)
“provides for the payment of the debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation of the corporate debtor under section 53;
in sub-section (2), for clause (b), the following shall be substituted, namely:-
"(b) provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than-
(i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or
(ii) the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in sub-section (1) of section 53,
whichever is higher, and provides for the payment of debts of financial creditors, who do not vote in favour of the resolution plan, in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with sub-section (1) of section 53 in the event of a liquidation of the corporate debtor.
Explanation 2.-For the purposes of this clause, it is hereby declared that on and from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019, the provisions of this clause shall also apply to the corporate insolvency resolution process of a corporate debtor-
(i) where a resolution plan has not been approved or rejected by the Adjudicating Authority;
(ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barred under any provision of law for the time being in force; or
(iii) where a legal proceeding has been initiated in any court against the decision of the Adjudicating Authority in respect of a resolution plan;";
" provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than-
(i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or
(ii) the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in sub-section (1) of section 53,
whichever is higher, and provides for the payment of debts of financial creditors, who do not vote in favour of the resolution plan, in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with sub-section (1) of section 53 in the event of a liquidation of the corporate debtor.
Explanation 2.-For the purposes of this clause, it is hereby declared that on and from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019, the provisions of this clause shall also apply to the corporate insolvency resolution process of a corporate debtor-
(i) where a resolution plan has not been approved or rejected by the Adjudicating Authority;
(ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barred under any provision of law for the time being in force; or
(iii) where a legal proceeding has been initiated in any court against the decision of the Adjudicating Authority in respect of a resolution plan;";
30(4)
The committee of creditors may approve a resolution plan by a vote of not less than sixty-six per cent. of voting share of the financial creditors, after considering its feasibility and viability, and such other requirements as may be specified by the Board
after the words "feasibility and viability,", the words, ["the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53. including the priority and value of the security interest of a secured creditor"] shall be inserted
The committee of creditors may approve a resolution plan by a vote of not less than sixty-six per cent. of voting share of the financial creditors, after considering its feasibility and viability, [the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor] and such other requirements as may be specified by the Board
S.31 (1)
If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan.
After the words "members, creditors,", the words "including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed," shall be inserted.
(1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors,[ including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed,] guarantors and other stakeholders involved in the resolution plan.
S.33(2)
Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors 1 [approved by not less than sixty-six per cent. of the voting share] to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1).
In section 33 of the principal Act, in sub-section (2), the following Explanation shall be inserted, namely:-
"Explanation.-For the purposes of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.".
 Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors approved by not less than sixty-six per cent. of the voting share to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1).
 [Explanation. – For the purpose of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.]
S. 240 (2) (w)
(w) the manner of making payment of insolvency resolution process costs under clause (a), the manner of “repayment of debts of operational creditors under clause (b), and the other requirements to which a resolution plan shall conform to under clause (d), of subsection (2) of section 30;
for the words "repayment of debts of operational creditors", the words "payment of debts" shall be substituted.
the manner of making payment of insolvency resolution process costs under clause (a), the manner of [payment of debts] under clause (b), and the other requirements to which a resolution plan shall conform to under clause (d), of subsection (2) of section 30;


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