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INSOLVENCY AND BANKRUPTCY NEWS

COVID-19 Protocol and Precautions IBBI
The IBBI has been taking several measures to contain the spread of Amendment to CIRP Regulations
COVID-19 to ensure the safety of its ofcers and staff without impacting
the ofce work. Standard Operating Procedures (SOP), based on various The IBBI amended the IBBI (Insolvency Resolution Process for Corporate
guidelines issued by the Government from time to time, have been laid Persons) Regulations, 2016 (CIRP Regulations) vide notication dated
down as regards social distancing, wearing of masks and maintaining hand February 9, 2022 (amendment). The amendment reviews the various
hygiene. Ofce premises are regularly sanitised. Regular attendance of circulars issued from time to time to deal with the issues that arise during
ofcers along with biometric system has been resumed subject to following the Corporate Insolvency Resolution Process (CIRP) and for better
SOP for work in ofce premises and COVID-19 appropriate behaviour. implementation of the Code. For ease of compliance and for integrating
the directions given through circulars into the relevant Regulations, the
Employee Trainings and Workshop
circular issued on April 16, 2021 regarding clarication on consideration of
The IBBI organised the following workshops and trainings for its ofcers matters / issues by the committee of creditors on request by members of
through video conference: the committee and circular issued on January 6, 2021 regarding retention
Date Nature of Programme/Subject Faculty of records relating to CIRP, have been made a part of the CIRP Regulations
19-01-22 Manupatra Legal Database Manupatra team by way of amendment in Regulation 18 and Regulation 39A respectively.
23-03-22 Legislative drafting Dr. (Ms.) Mukulita Vijayawargiya, WTM
Amendment to Online Delivery of Educational Course and CPE
24-03-22 Cross Border Insolvency Insolvency Service, UK &
for the Regulators Herbert Smith Freehills, UK Guidelines
The ofcers of IBBI attended the following workshops and training The IBBI extended the validity of the Insolvency and Bankruptcy Board of
India (Online Delivery of Educational Course and Continuing Professional
programmes:
Education by Insolvency Professional Agencies and Registered Valuers
Date Organised by Nature of the No. of
programme/Subject Ofcers Organisations) Guidelines, 2020, till September 30, 2022, vide Circular
10-01-22 National Service Regulations 1 dated March 29, 2022.
to Productivity
Invitation of comments from public on proposed changes to
11-01-22 Council of India
Voluntary Liquidation Framework
24-01-22 National Safeguards in Public 4
to Productivity Procurement, GFR 2017 The IBBI vide its discussion paper dated February 1, 2022 invited
25-01-22 Council of India along with amendments comments from stakeholders on the changes proposed to IBBI (Voluntary
07-02-22 IICA Designing & Drafting 2 Liquidation Process) Regulations, 2017. The discussion paper proposes
to of Regulation and reduced timelines for various activities under the Voluntary Liquidation
25-02-22 its Management Framework, such as preparation of list of stakeholders by the liquidator,
distribution of proceeds to the stakeholders, and submission of nal
report by the liquidator. The proposed amendments, by curtailing the
Legal and Regulatory unwarranted time spent on various activities, aim to ensure early
completion of Voluntary Liquidation Process, thereby, provide quicker
Framework exit for the corporate person, release the idle resources faster, and put
them into productive uses.
Central Government Further, on the lines of compliance certicate provided under CIRP
Regulations and Liquidation Regulations, it is proposed that a similar
Appointment of Dr. Anuradha Guru as Ex-ofcio member in the compliance certicate / checklist may be introduced for Voluntary
Insolvency and Bankruptcy Board of India Liquidation Process, to be submitted along with nal report to the AA.
The Central Government vide notication dated January 28, 2022 had The certicate / checklist would contain summary of the Voluntary
appointed Dr. Anuradha Guru, Economic Adviser, MCA as ex-ofcio Liquidation Process including the time taken for various actions by the
member in the Insolvency and Bankruptcy Board of India to represent the liquidator against the prescribed time limit, details of receipts and
said Ministry in the Board. payment during the process, etc. The proposed amendment would assist
the AA to process the dissolution applications expeditiously and ensure
Economic Survey
consistency across its benches.
The Economic Survey 2021-22, while noting the outcomes under the IBC, Invitation of comments from public on Engagement of
advocated for a standardised framework for cross-border insolvency and
simplication of the voluntary liquidation process. It also emphasised the Professionals during CIRP
need for creation of a single window framework for the entire voluntary The IBBI vide its discussion paper dated February 15, 2022 invited
liquidation process. comments from stakeholders on the proposed amendments to CIRP
Regulations, on engagement and appointment of professionals during
Union Budget 2022-23
CIRP. In order to make the process of appointment of professionals more
The Union Budget 2022-23 provided the following: robust and transparent, it is proposed that the interim resolution
professional or the resolution professional shall lay the request for
• Necessary amendments in the Code will be carried out to enhance the
efcacy of the resolution process and facilitate cross border insolvency appointment of professional before the CoC for ratication and such
resolution. request for appointment shall be accompanied by a statement in writing,
providing the reasons and justication for the appointment by way of cost
• Several IT-based systems have been established for accelerated benet analysis, the scope of work assigned, the absence of such services
registration of new companies. Now the Centre for Processing in the corporate debtor (CD), the manner of selection and
Accelerated Corporate Exit (C-PACE) with process re-engineering, reasonableness of cost for such service. Further, the request shall also be
will be established to facilitate and speed up the voluntary winding-up accompanied by a declaration by the IP that, (i) he has exercised
of these companies from the currently required 2 years to less than 6 reasonable due diligence before proposing such appointment; (ii) the
months. appointment is not of a related party; (iii) he has obtained an undertaking
that the same professional(s) will not associate himself, in any way, with
other stakeholders involved in the process; and (iv) requisite disclosures
have been made regarding such appointments.

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