The Insolvency and Bankruptcy Board of India (IBBI) on June 21, 2024, issued the notification regarding the Format for progress report during Liquidation process.
The following has been stated namely: -
• Reference is drawn to the following: -
o Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 – It mandates the submission of progress reports by the liquidator during the liquidation process. Sub-regulation (1) specifies that the liquidator must submit Progress Reports, in the format stipulated by the Board, to both the Adjudicating Authority and the Board.
o Circular dated February 22, 2024, requires that the liquidator share the progress reports with the members of the Stakeholders’ Consultation Committee, provided they have given a confidential undertaking.
o Regulation 15 outlines that the progress report must include various pieces of information (appointment, tenure, and cessation of appointment of professionals)
o The report should cover the fee due to and received by the liquidator, the remuneration or fee paid to professionals appointed by the liquidator, developments in any material litigation involving the corporate debtor, and the filing and developments in applications for avoidance of transactions.
• To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, a standard format is being introduced.
• A draft of the format for the progress report is enclosed as an Annexure.
• Comments on the format may be submitted electronically by July 12, 2024. To provide comments, please follow the process stated in the notification.
