Clause b of sub section 2 of section 30 provides that 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.
To summarize, the resolution plan should provide for payment of debts of operational creditors and the amount should not be less than (i) or (ii) whichever is higher.
by Shubhamm Sir
at 10-Apr-2023 05:26 PM