Home » Corporate » Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 on 14th July, 2021.

The amendment regulations enhance the discipline, transparency, and accountability in corporate insolvency proceedings:

A.A corporate debtor (CD) may have changed its name or registered office address prior to commencement of insolvency. The stakeholders may find it difficult to relate to the new name or registered office address and consequently fail to participate in the CIRP. The amendment requires an insolvency professional (IP) conducting CIRP to disclose all former names and registered office address(es) so changed in the two years preceding the commencement of insolvency along with the current name and registered office address of the CD, in all its communications and records.

B.The interim resolution professional (IRP) or resolution professional (RP) may appoint any professional, including registered valuers, to assist him in discharge of his duties in conduct of the CIRP. The amendment provides that the IRP/RP may appoint a professional, other than registered valuers, if he is of the opinion that the services of such professional are required and such services are not available with the CD. Such appointments shall be made on an arm’s length basis following an objective and transparent process. The invoice for fee shall be raised in the name of the professional and be paid into his bank account.

C.The RP is duty bound to find out if a CD has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the Adjudicating Authority seeking appropriate relief. This not only claws back the value lost in such transactions increasing the possibility of reorganisation of the CD through a resolution plan, but also disincentivises such transactions preventing stress to the CD. For effective monitoring, the amendment requires the RP to file Form CIRP 8 on the electronic platform of the Board, intimating details of his opinion and determination in respect of avoidance transactions. The IBBI has specified the format of CIRP 8 through a Circular issued yesterday. This Form needs to be filed in respect of every CIRP ongoing or commencing on or after 14th July, 2021.

The amended regulations are effective from 14th July, 2021. These are available at www.mca.gov.in and www.ibbi.gov.in.

About IIPnews

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

Ministry of Corporate Affairs revises threshold limits for value of Assets and Turnover for purposes of combination filings under Competition Act, 2002 as a step towards ‘Ease of doing Business’

The Ministry of Corporate Affairs has revised the existing threshold value of assets and turnover ...

Measures by Government shall lead to three-fold increase in Natural Gas consumption by 2030: Petroleum Minister Hardeep S Puri

In a significant stride towards achieving 100% coverage of country’s area for the development of ...

Union Minister Pralhad Joshi launches “Coal Logistics Plan and Policy”

Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi has launched a groundbreaking ...

Coal India Limited Signs MoU with Indian Institute of Managements (IIM) to boost PM’s mission Gati Shakti

The Coal India Limited entered into a Memorandum of Understanding (MoU) with Indian Institute of ...

ODISHA THE LAND OF OPPORTUNITIES

 A 3600 APPROACH Odisha has become a destination for investors and entrepreneurs from across the ...

South Eastern Coalfields Ltd Plans to Develop Solar Power Projects of 600 MW

South Eastern Coalfields Ltd (SECL), one of the largest coal-producing subsidiaries of Coal India Ltd, ...

NALCO surpasses past production records, posts Net Profit of Rs. 1544 crore and Clocks all time High Revenue from Operations at Rs.14, 255 crore in FY 22-23

National Aluminium Company Limited (NALCO), the Navratna CPSE, under the Ministry of Mines, Government of ...

MoS Rajeev Chandrasekhar holds Digital India Dialogues in Mumbai on the Principles of the Digital India Act

Union Minister of State for Skill Development and Entrepreneurship and Electronics and IT Rajeev Chandrasekhar ...

Details of Fund Collected Under District Mineral Foundation by Different States

The Central Government under Section 20A of the MMDR Act has issued directions and circulated ...

Policy for Promotion of Software Exports

As per National Association of Software & Services Companies (NASSCOM), exports from Indian Information Technology/ ...

WP2Social Auto Publish Powered By : XYZScripts.com