The Insolvency and Bankruptcy Board of India, (IBBI) on February 22, 2024, issued a notification regarding Enhancing Transparency and Stakeholder Engagement in Liquidation Process.
The following has been stated-
•It is hereby directed that the liquidator shall also share the progress reports with the members of the Stakeholders’ Consultation Committee (SCC) after receiving a confidential undertaking. Further, the liquidator shall submit the progress reports under Regulation 15 till the filing of the final report under Regulation 45.
•Regulation 13 of the Liquidation Regulations mandates the liquidator to submit a Preliminary Report to the AA detailing various aspects of the corporate debtor and the intended plan of action for carrying out the liquidation process. However, the present regulation lacks SCC consultation in preparation of the preliminary report thereby risking oversight of crucial stakeholder insights.
•Accordingly, it is hereby directed that the liquidator shall seek suggestions from the members of the SCC while preparing the Preliminary Report under regulation 13 and finalise the Preliminary Report after considering such suggestions and thereafter, submit it to the AA, Board and members of SCC. Sharing of the final report, Form H, and process closure/dissolution order with IBBI.
•It is hereby directed that the liquidator shall submit a copy of Form H along with the final report filed before the Adjudicating Authority as per Regulation 45
[Notification No. IBBI/LIQ/70/2024]
