The Insolvency and Bankruptcy Board of India (IBBI) on February 03, 2025, issued the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2025 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
The following amendments have been stated:
• After regulation 4D, the following regulation shall be inserted, namely:-
“4E. Handing over the possession. After obtaining the approval of the committee with not less than sixty-six percent of total votes, the resolution professional shall hand over the possession of the plot, apartment, or building or any instruments agreed to be transferred under the real estate project and facilitate registration, where the allottee has requested for the same and has performed his part under the agreement.”
• After regulation 16B, the following regulations shall be inserted, namely:-
“16C. Appointment of facilitators. (1) Where the number of creditors in a class exceeds one thousand, the committee may, direct the interim resolution professional or resolution professional, as the case may be, to appoint an insolvency professional other than the interim resolution professional, resolution professional and authorised representative, or any other person, as facilitator for a sub-class within the creditors in a class, subject to the following conditions :-
(a) the appointment of facilitator shall be considered only if, after the first meeting of the committee, a sub-class comprising of at least one hundred creditors out of the total number of creditors in a class, request for the inclusion of an agenda for such appointment along with the name of the proposed facilitator;
(b) the total number of facilitators shall not exceed five; and
(c) the fee for facilitator for each sub-class shall be twenty per cent. of the fees specified for the authorised representative and such fee shall be part of the insolvency resolution process cost.
(2) The committee may replace the facilitator on the recommendation of a majority of the members of the sub-class.
16D. Roles and responsibilities of the facilitator.
The roles and responsibilities of the facilitator(s) shall include the following:-
(a) facilitating communication between the authorised representative and the creditors of the sub-class;
(b) attending the meetings of the committee, as observers, to facilitate communication between creditors of the respective sub-class;
(c) providing information and clarifications to the creditors in a sub-class about the insolvency resolution process, as per advice of the authorised representative; and
(d) any other tasks assigned by the committee to improve representation and communication.”
• In regulation 18, after sub-regulation (3), the following sub-regulation shall be inserted, namely:-
“(4) Where the corporate debtor has any real estate project, the committee may direct the resolution professional to invite the ‘competent authority’ as defined in clause (p) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016) related to such project to attend such meeting(s) of the committee, as the committee may decide, without voting rights, for providing inputs on matters associated with the development of such project.”
They shall come into force on February 03, 2025.
[Notification No. IBBI/2024-25/GN/REG122]
