IBBI Amends CIRP Regulations W.E.F. 15th February 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a notification dated 15.02.2024, whereby amendments have been made to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). The key amendments are: Operating separate bank accounts for real estate projects: To ensure financial transparency and accountability, the amendment makes it mandatory to have a separate bank account for each real estate project under a corporate ...

IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Voluntary Liquidation Account

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Voluntary Liquidation Account in favour of entitled stakeholders. Brief background Regulation 39 of IBBI (Voluntary Liquidation Process) Regulations, 2017 provides a framework for management of unclaimed deposits and undistributed proceeds during the...

Enhancing Transparency And Stakeholder Engagement In Liquidation Process – IBBI Issues Circular

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 22.02.2024 on the enhancement of transparency and stakeholder engagement in the liquidation process via the circulation of progress reports to stakeholders, preparation of the preliminary report and sharing of final report, Form H, and process closure/dissolution order with IBBI. Circulation of progress reports to stakeholders 1. Regulation 15 of IBBI (Liquidation Process) Regulations, 2016...

Flat In Possession Of Allottee Not To Be Included In Liquidation Estate; IBBI Introduces Key Amendments To Liquidation Process Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the IBBI (Liquidation Process) Regulations, 2016, with effect from 12.02.2024. The amendments have been introduced to strengthen the regulatory framework of liquidation process by ensure accountability and bolstering the confidence of stakeholders in the liquidation process. Key Amendments The liquidator may reduce the reserve price by up to 25% for assets with existing valuation of the Corporate Insolvency...

IBBI Directs Liquidator To Make Certain Declaration When Financial Service Provider Undergoes Voluntary Liquidation

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating that when a Financial Service Provider undergoes voluntary liquidation under IBC, then the Liquidator shall declare that: (i) the category of Financial Service Providers has been notified by the Central Government under Section 227 of IBC, and (ii) the corporate person has obtained prior permission from the appropriate regulator. Brief Background The Insolvency and Bankruptcy...

IBBI Directs Resolution Professionals To Provide Copy Of Report Prepared Under Section 99 Of IBC To Creditors & Debtor

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 12.02.2024, directing that the Resolution Professional shall provide the report prepared under Section 99 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to both debtor and creditor. The Resolution Professional (RP) in an insolvency resolution process of a debtor under Chapter III of Part III of IBC examines the application filed under Section 94 or 95 of IBC. Thereafter, the Resolution Professional...

IBBI Committee Proposes Framework For Voluntary Mediation Under IBC

The Insolvency and Bankruptcy Board of India (“IBBI”) has published a report dated 31.01.2024 on “Framework for Use of Mediation under the Insolvency and Bankruptcy Code, 2016”. The Report has been prepared by an Expert Committee constituted by the IBBI and the Report contains recommendations on framework for introduction of voluntary mediation, as a complementary disputes resolution mechanism around the processes under IBC. Summary Of Recommendations Of The Committee The mediation...

IBBI Issues Clarification Regarding Conduct Of Process By Insolvency Professionals

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 01.02.2024, intimating measures for facilitating efficient conduct of the processes by the Insolvency Professionals. The IBBI has clarified an Insolvency Professional may render professional service in relation to implementation of resolution plan approved by Adjudicating Authority, provided details of such service are mentioned in the resolution plan approved by Adjudicating Authority. The IBBI has...

IBBI Issues Clarification Regarding Disciplinary Proceedings, Limit On Assignments & Fee Structure Of Insolvency Professional Entities

IBBI Issues Clarification Regarding Disciplinary Proceedings, Limit On Assignments & Fee Structure Of Insolvency Professional Entities The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 01.02.2024 intimating measures for rationalisation of the regulatory framework of Insolvency Professional Entities (IPE). IBBI has clarified regarding disciplinary proceedings in case of an IP which is an IPE, applicability of limit on number of Assignments to an IP which is...

IBBI Reduces Cooling Off Period Between Two Consecutive Attempts In Limited Insolvency Examination And Valuation Examinations

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 18.01.2024, intimating that the cooling-off period between two consecutive attempts in Limited Insolvency Examination and Valuation Examinations has been reduced to 21 days, from earlier cooling off period of 2 months. Brief background IBBI conducts the Limited Insolvency Examination (“LIE”) in pursuance of Regulation 3 of the IBBI (Insolvency Professionals) Regulations, 2016. The IBBI is empowered...

IBBI Amends Voluntary Liquidation Process Regulations w.e.f. 31st January 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, with effect from 31.01.2024. Amendments The following amendments have been made to streamline the voluntary liquidation process and facilitate the distribution of unclaimed proceeds to the stakeholders before the dissolution of the corporate person: The directors of the corporate person while initiating the voluntary...

IBBI Amends Regulations Regarding Insolvency Professionals w.e.f. 31st January 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (“IP Regulations”), with effect from 31.01.2024. Amendments The Clause 22 of First Schedule of IP Regulations deals with occupation, employability and restrictions on Insolvency Professionals. The IBBI has amended the Clause 22 by inserting Clause 22A thereafter, which reads as under: “22A. An insolvency professional...