(1) Where the liquidator or the resolution professional, as the case may be, has not reported or not made an application to the Adjudicating Authority for the avoidance of any undervalued transaction, a creditor, member or a partner, as the case may be, of the corporate debtor, may make an application to the Adjudicating Authority to declare such transactions void and reverse their effect in accordance with this Code.

(2) Where the Adjudicating Authority, on examination of the application made under sub-section (1), is satisfied that—

1. the corporate debtor has entered into an undervalued transaction;
2. the liquidator or the resolution professional, as the case may be, after having sufficient information or opportunity to avail information, has not reported such transaction to the Adjudicating Authority,

it shall pass an order—

1. restoring the position as it existed before such transaction as if the transaction had not been made; and
2. directing the Board to initiate disciplinary proceedings against the liquidator or the resolution professional, as the case may be.