The Insolvency and Bankruptcy Board of India (IBBI) on September 19, 2023, issued a notification regarding the amendment in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
The IBBI notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2023 on September 18, 2023.
The following are the details of the amendments has been stated:
• Added a provision regarding the assistance and cooperation expected from the personnel of the corporate debtor (CD) by providing a detailed procedure for taking custody and control of assets and records of the CD by the resolution professional (RP).
• To facilitate the Adjudicating Authority (AA) burdened with applications for acceptance of delayed claims, the Amendment Regulations increase the timelines to file claims up to the date of issue of request for resolution plans under regulation 36B or ninety days from the insolvency commencement date, whichever is later.
• To make the resolution process more transparent and robust, the amendment enables committee members to get an audit of the CD conducted and makes the cost of such audit to be part of CIRP cost.
• The amendment aligns the timelines concerning various procedural aspects like issuance of information memorandum and request for resolution plans.
• To improve the value received in the resolution plan, the amendment provides changes to Form G to provide more information to prospective resolution applicants with less effort on their part.
• The amendment provides for inclusion in the compliance certificate (Form H), the minutes of the committee of creditors in which the resolution plan is approved to enable the AA to understand the rationale of the decision of the CoC in a better manner.
[Notification No. IBBI/PR/2023/10]
