The Insolvency and Bankruptcy Board of India

Ministry of Corporate Affairs

 

WHAT

The Insolvency and Bankruptcy Board of India (IBBI) amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2019.

Some of the amendments made by these Regulations are consequential to the Insolvency and Bankruptcy Code (Amendment) Act, 2019, which came into force on 5th August, 2019.

AMENDMENTS

• The amendment inserted Regulation “25A” which says: “The authorised representative shall cast his vote in respect of each financial creditor or on behalf of all financial creditors he represents in accordance with the provisions of sub-section (3) or sub-section (3A) of section 25A, as the case may be.”.
• Another amendment to Regulation “37” says: after clause (b), the following clause shall be inserted, namely – (ba) restructuring of the corporate debtor, by way of merger, amalgamation and demerger,”.
• It also said that the amount payable under a resolution plan to the operational creditors shall be paid in priority over financial creditors and those financial creditors, who have a right to vote under subsection (2) of section 21 and did not vote in favour of the resolution plan, shall be paid in priority over financial creditors who voted in favour of the plan.
• The amendment also included Regulation 40B as per which the insolvency professional, the interim resolution professional or resolution professional, shall file the necessary forms, along with the required enclosures, on an electronic platform of the board.
• In the interest of transparency and accountability in conduct of CIRPs (corporate insolvency resolution process) and conduct of the IPs (insolvency professional), and to facilitate the IBBI, the IPAs and the IPs to discharge of their statutory obligations, the Amendment Regulations require the IPs to file a set of Forms, covering the life cycle of a CIRP, online on an electronic platform hosted on the website of the IBBI.
• An IP shall be liable to action permissible under Insolvency and Bankruptcy Code, including refusal to issue or renew authorisation for assignment, for failure to file a form or for inaccurate or delayed filing.

 

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

• IBBI was established on 1 October 2016 and given statutory powers through the Insolvency and Bankruptcy Code.
• The IBBI is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India.
• It covers Individuals, Companies, Limited Liability Partnerships and Partnership firms. The new code will speed up the resolution process for stressed assets in the country.
• It attempts to simplify the process of insolvency and bankruptcy proceedings.
• It handles the cases using two tribunals like NCLT(National company law tribunal) and Debt recovery tribunal.
• Mrs. Suman Saxena former Deputy CAG of India appointed as Whole Time Member of IBBI

 

Source: PIB

 

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