Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2022

Sep 17, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Insolvency and Bankruptcy Board of India (IBBI) on September 16, 2022, issued the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2022 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 

The following amendments have been made:

• After regulation 4B, the regulation 4C has been inserted, namely:

“4C. Process e-mail. 

o The interim resolution professional shall open an email account and use it for all correspondences with stakeholders and in the event of his replacement by a resolution professional, shall handover the credentials of the email to him. 

o The resolution professional shall, in case of his replacement with another resolution professional or a liquidator, hand over the credentials of the email to the other resolution professional or the liquidator, as the case may be.”

• After regulation 6, the regulation 6A has been inserted, namely:- 

“6A. Communication to creditors. The interim resolution professional shall send a communication along with a copy of public announcement made under regulation 6, to all the creditors as per the last available books of accounts of the corporate debtor through post or electronic means wherever the information for communication is available. Provided that where it is not possible to send a communication to creditors, the public announcement made under regulation 6 shall be deemed to be the communicated to such creditors.”

• In regulation 35A, for sub-regulation (3), the following has been substituted, namely:- 

“(3) Where the resolution professional makes a determination under sub-regulation (2), he shall apply to the Adjudicating Authority for appropriate relief on or before the one hundred and thirtieth day of the insolvency commencement date.”

• In regulation 35A, after sub-regulation (3), the following has been inserted, namely:-

 “(3A) The resolution professional shall forward a copy of the application to the prospective resolution applicant to enable him to consider the same while submitting the resolution plan within the time initially stipulated.”

• After regulation 36B, the regulation 36C has been inserted, namely:- 

“36C. Strategy for marketing of assets of the corporate debtor. 

o The resolution professional shall prepare a strategy for marketing of the assets of the corporate debtor in consultation with the committee, where the total assets as per the last available financial statements exceed one hundred crore rupees and may prepare such strategy in other cases. 

o Decision of implementing such strategy along with its cost shall be subject to the approval of the committee. 

o The member(s) of committee may also take measures for marketing of the assets of the corporate debtor.”

• After regulation 39B, the regulation 39BA has been inserted, namely: - 

“39BA. Assessment of Compromise or Arrangement. 

(1) While deciding to liquidate the corporate debtor under section 33, the committee shall examine whether to explore compromise or arrangement as referred to under sub -regulation (1) of regulation 2B of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016 and the resolution professional shall submit the committee‟s recommendation to the Adjudicating Authority while filing application under section 33.

(2) Where a recommendation has been made under sub-regulation (1), the resolution professional and the committee shall keep exploring the possibility of compromise or arrangement during the period the application to liquidate the corporate debtor is pending before the Adjudicating Authority.”

• In regulation 40A, the table has been amended. 

• After regulation 40C, the regulation 40D has been inserted, namely:- 

“40D. Decision for liquidation. 

o The committee while considering the liquidation of the corporate debtor may consider factors including but not limited to non-operational status for preceding three years, goods produced or service offered or technology employed being obsolete, absence of any assets, lack of any intangible assets or factors which bring value as a going concern over and above the physical assets like brand value, intellectual property, accumulated losses, depreciation, investments that are yet to mature. 

o Such consideration may be recorded and submitted in the application for liquidation submitted by the resolution professional to the Adjudicating Authority.”

In the Schedule, Form G which states “Invitation For Expression Of Interest For [Name Of Corporate Debtor] Operating In [Industry Type] At [Location(S)]” has been amended.

Disclaimer – Kindly find the amended table in the provided Link/Document. 

[Notification No. IBBI/2022-23/GN/REG093]


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