Appointment of Interim Administrator
3 (1) Within seven days of receipt of an application under subrule (2) of rule 19.2, the Tribunal shall, by an order, –
(i) post the matter for being heard before Tribunal on any date not later than ninety days from the date of receipt of the application;
(ii) direct that a notice be sent to the debtor company, if it is not the applicant;
(iii) appoint an interim administrator. The order appointing the interim administrator shall be in Form H.
(iv) direct the interim administrator to cause the publication of a notice in Form I at least once in a vernacular newspaperin the principal vernacular language of the district in which the registered office of the company is situated and circulating in that district and at least once in English in an English newspaper circulating in that district within seven days from the date of receipt of the certified copy of the order of the Tribunal appointing him.
(v) direct the interim administrator to call and convene a meeting of the creditors within forty five days from the date of the order.
(vi) direct the interim administrator to ascertain and submit a report, within sixty days from the date of the order whether it is possible to adopt certain measures for the revival and rehabilitation of the sick company. The report of the interim administrator shall be in Form J.
(vii) give directions to the interim administrator to protect and preserve the assets of the sick company and for its proper management.
(2) Where the sick company did not submit a draft scheme of revival and rehabilitation within thirty days from the date on which meeting of creditors is held, the Tribunal may direct the interim administrator to take over the management of the sick company upon which the interim administrator shall take over the management of the sick company and such order shall further direct the interim administrator-
(i) to notify the sick company to that effect;
(ii) to cause the publication of a notice at least once in a vernacular newspaper in the principal vernacular language ofthe district in which the registered office of the company is situated and circulating in that district and at least once in English in an English newspaper within seven days from the date of receipt of certified copy of the order of the Tribunal directing him to take over the management of the sick company;
(iii) a copy of the aforesaid notice shall be displayed on the notice board of the registered office on the website of the company, if any, and at such other places where the business of the company is carried out. The notice shall also be given to all the directors, bankers, income-tax authorities, Registrar of Companies having jurisdiction over the registered office of the company and all concerned with the affairs of the sick company that he has taken over the management of the sick company;
(iv) to call for such information and explanation as he may require from such persons and parties as he may deem fit;
(v) to apply to the Tribunal for meeting any exigencies.
(3) The interim administrator shall be entitled –
(i) to have an office at the registered office of the sick company;
(ii) to be entitled to access all information and inspect all books and papers, books of account, registers and records of the sick company at all places where the sick company has offices, branches, divisions, factories, godowns, and such other places where the affairs of the sick company are being or have been carried as ascertained from the records of the sick company.
(iii) to apply to the executive magistrate of the district for any protection that may be required for safeguarding himself and his assistants and assets and properties, books and records of the sick company.
(iv) to apply to the Tribunal for such orders or directions or assistance as may be necessary.
(v) to apply for extension of time for anything to be done under these rules within a stipulated time.
(4) The Board of directors of the debtor company shall call a meeting within seven days of appointment of interim administrator to depute one or more officers of the company to provide all assistance that the interim administrator may require.
(5) The Tribunal shall determine the fee payable to the interim administrator which shall be borne by the applicant; where there are two or more applicants, by all of them in such proportion as the Tribunal may direct.
(6) The interim administrator shall be entitled to reimbursement of all costs, charges and expenses incurred by him subject to sanction by the Tribunal and shall be entitled to an advance on costs.
(7) On the application of any secured creditor or the sick company, if the Tribunal is satisfied that the conduct of the interim administrator was not fair and reasonable in the facts and circumstances obtained at that time when such question had arisen, after giving him an opportunity of being heard, it may, by order, terminate the office of the interim administrator and appoint in his place another person as the interim administrator and give such interim administrator such time as may be necessary. |