Section 5

⁸ Ins. by Act No. 26 of 2021, sec.2 (w.e.f. 04-04-2021).

¹¹ Ins. by Act No. 26 of 2021, sec.3(ii) (w.e.f. 04-04-2021).

¹² Ins. by Act No. 26 of 2018, sec. 3 (w.e.f. 6-6-2018).

¹³ Ins. by Act No. 26 of 2018, sec. 3 (w.e.f. 6-6-2018).

¹⁴ Inserted by Act No. 6 of 2026, sec. 3 (w.e.f. 26-05-2026).

¹⁵ Ins. by Act No. 26 of 2021, sec.3(iii) (w.e.f. 04-04-2021).

¹⁶ Inserted by Act No. 6 of 2026, sec. 3 (w.e.f. 26-05-2026).

¹⁷ Omitted by Act No. 1 of 2020, sec.2 (w.e.f. 28-12-2019). Before omission it stood as “Provided that where the interim resolution professional is not appointed in the order admitting application under section 7, 9 or 10, the insolvency commencement date shall be the date on which such interim resolution professional is appointed by the Adjudicating Authority”; which was Ins. by Act No. 26 of 2018, sec. 3 (w.e.f. 6-6-2018). (14) “insolvency resolution process period” means the period of one hundred and eighty days beginning from the insolvency commencement date and ending on one hundred and eightieth day; (15) “interim finance” means any financial debt raised by the resolution professional during the insolvency resolution process period [or by the corporate debtor during the pre- packaged insolvency resolution process period, as the case may be] [and such other debt as may be notified];18 19 (16) “liquidation cost” means any cost incurred by the liquidator during the period of liquidation subject to such regulations, as may be specified by the Board; (17) “liquidation commencement date” means the date on which proceedings for liquidation commence in accordance with section 33 or section 59, as the case may be; (18) “liquidator” means an insolvency professional appointed as a liquidator in accordance with the provisions of Chapter III or Chapter V of this Part, as the case may be; (19) “officer” for the purposes of [Chapter VI and] Chapter VII of this Part, means an officer who is in default, as defined in clause (60) of section 2 of the Companies Act, 2013 (18 of 2013), or a designated partner as defined in clause (j) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be;20 (20) “operational creditor” means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred; (21) “operational debt” means a claim in respect of the provision of goods or services including employment or a debt in respect of the [payment] of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority;21 (22) “personal guarantor” means an individual who is the surety in a contract of guarantee to a corporate debtor; (23) “personnel” includes the directors, managers, key managerial personnel, designated partners and employees, if any, of the corporate debtor; [(23A) “preliminary information memorandum” means a memorandum submitted by the corporate debtor under clause (b) of sub-section (1) of section 54G;22 (23B) “pre-packaged insolvency commencement date” means the date of admission of an application for initiating the pre-packaged insolvency resolution process by the Adjudicating Authority under clause (a) of sub-section (4) of section 54C; (23C) “pre-packaged insolvency resolution process costs” means— (a) the amount of any interim finance and the costs incurred in raising such finance; (b) the fees payable to any person acting as a resolution professional and any expenses incurred by him for conducting the pre-packaged insolvency resolution process during the pre-packaged insolvency resolution process period, subject to sub-section (6) of section 54F; (c) any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern pursuant to an order under sub-section (2) of section 54J; (d) any costs incurred at the expense of the Government to facilitate the pre- packaged insolvency resolution process; and (e) any other costs as may be specified; (23D) “pre-packaged insolvency resolution process period” means the period beginning from the pre-packaged insolvency commencement date and ending on the date on which an order under sub-section (1) of section 54L, or sub-section (1) of section 54N, or sub-section (2) of section 54-O, as the case may be, is passed by the Adjudicating Authority;] (24) “related party”, in relation to a corporate debtor, means- (a) a director or partner of the corporate debtor or a relative of a director or partner of the corporate debtor; (b) a key managerial personnel of the corporate debtor or a relative of a key managerial personnel of the corporate debtor; (c) a limited liability partnership or a partnership firm in which a director, partner, or manager of the corporate debtor or his relative is a partner; (d) a private company in which a director, partner or manager of the corporate debtor is a director and holds along with his relatives, more than two per cent. of its share capital;

¹⁸ Ins. by Act No. 1 of 2020, sec.2 (w.e.f. 28-12-2019).

¹⁹ Ins. by Act No. 26 of 2021, sec.3(iv) (w.e.f. 04-04-2021).

²⁰ Ins. by Act No. 26 of 2021, sec.3(v) (w.e.f. 04-04-2021).

²¹ Subs. by Act No. 26 of 2018, sec. 3 for the word ‘repayment’ (w.e.f. 6-6-2018).

²² Ins. by Act No. 26 of 2021, sec.3(vi) (w.e.f. 04-04-2021).

²³ Ins. by Act No. 26 of 2018, sec. 3 (w.e.f. 6-6-2018).