The Insolvency and Bankruptcy Board of India (IBBI) on February 12, 2024, issued the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
The following has been amended namely: -
• Regulation 2B(1) which states “Compromise or arrangement” the second proviso has been substituted namely: -
“Provided further that the liquidator shall file the proposal of compromise or arrangement only in cases where such recommendation has been made by the committee under regulation 39BA of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016”
• Regulation 32A which states “Sale as a going concern” the following sub-regulation has been inserted namely: -
“(5) Where the liquidator is of the opinion that it is viable to run the corporate debtor as a going concern, he shall consult the consultation committee and only on its advice he shall run the affairs of the corporate debtor as a going concern to the extent approved.”
• Regulation 35 which states “Valuation of assets intended to be sold” the following sub-regulations have been inserted namely: -
“(5) Where valuation is undertaken as per sub-regulation (2), the liquidator shall facilitate a meeting wherein registered valuers shall explain the methodology being adopted to arrive at valuation to the consultation committee before finalisation of valuation reports.
(6) The liquidator shall share the valuation reports with the members of the consultation committee after obtaining an undertaking that they shall maintain the confidentiality of such reports and shall not use these reports to cause an undue gain or undue loss to itself or any other person”
• Regulation 46A which states “Exclusion of certain assets from the liquidation estate” has been inserted.
[Notification No. IBBI/2023-24/GN/REG112]
