Page 6 - IBBI-JUNE-SEPTEMBER 2022

the Board, can seek registration as an IP with the Board. However, it shall or arrangePHQW DQG ÀOH VXFK UHFRPPHQGDWLRQ ZLWK WKH $$ ZKLOH DSSO\LQJ
allow only its partner or director, as the case may be, who is an IP and holds to the AA for liquidation order; (f) provide for a common email address to
a valid Authorisation for Assignment (AFA), to sign and act on behalf of it. be used throughout the CIRP or liquidation period; (g) provide for the IRP/
RP to make the public announcement and invite claims from the creditors
Amendment to IPA Regulations of the CD, as per the last available books of accounts; and (h) clarify that a
7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD ,QVROYHQF\ meeting of CoC can be convened till resolution plan is approved or an order
Professional Agencies) (Amendment) Regulations, 2022 on July 4, 2022. The for liquidation is passed and matters which do not affect the resolution plan
amended regulations provide for disciplinary proceedings to be conducted can be decided upon.
in accordance with the provisions of the Insolvency and Bankruptcy Board 7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD ,QVROYHQF\
of India (Inspection and Investigation) Regulations, 2017.
Resolution Process for Corporate Persons) (Fifth Amendment) Regulations,
2022 on September 20, 2022. The amended regulations provide for (a) a
Amendment to Employee Service Regulations
regulatory fee to be payable to the Board at the rate of 0.25 per cent of
7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD (PSOR\HHV· the realisable value to the creditors under the approved resolution plan,
Service) (Amendment) Regulations, 2022 on July 6, 2022. The amended where such realisable value is more than the liquidation value and (b) a
UHJXODWLRQV PDNH PRGLÀFDWLRQV LQ 6FKHGXOH , WR WKH 5HJXODWLRQV ZKLFK regulatory fee calculated at the rate of 1 per cent of the cost being booked
VSHFLÀHV WKH PHWKRG RI UHFUXLWPHQW DQG HOLJLELOLW\ IRU YDULRXV JUDGHV DQG
in insolvency resolution process costs in respect of hiring any professional
positions.
or other services by the IRP/RP, for assistance in a CIRP. The amendment is
Amendment to CIRP Regulations applicable where resolution plans are approved on or after October 1, 2022.
7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD ,QVROYHQF\
Resolution Process for Corporate Persons) (Third Amendment) Regulations, Amendment to Liquidation Regulations
2022 (Amendment Regulations) on September 13, 2022. The salient features 7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD /LTXLGDWLRQ
of the amendments are as under: Process) (Second Amendment) Regulations, 2022 on September 16, 2022. To
enable better participation of stakeholders and to streamline the liquidation
(a) The fee of the interim resolution professional (IRP) or the resolution
professional (RP), appointed on or after October 1, 2022 shall be decided process to reduce delays and realise better value, the amendment makes
by the applicant or committee in accordance with the said amendment PRGLÀFDWLRQV LQ WKH FRQVWLWXWLRQ RI VWDNHKROGHUV· FRQVXOWDWLRQ FRPPLWWHH
regulations. 6&& PHHWLQJV DQG VFRSH RI 6&& FODLPV YHULÀFDWLRQ SURFHVV RI
compromise or arrangement, timelines for auction process, and continuation
E $Q ,3 VKDOO EH SDLG PLQLPXP À[HG IHH LQ WKH UDQJH RI RQH ODNK UXSHHV WR of avoidance applications after closure of liquidation proceedings. It further
ÀYH ODNK UXSHHV SHU PRQWK GHSHQGLQJ RQ WKH TXDQWXP RI FODLPV DGPLWWHG lays down the manner and period of retention of records relating to
DV VSHFLÀHG XQGHU 7DEOH RI 6FKHGXOH ,, RI WKH VDLG DPHQGPHQW UHJXODWLRQV liquidation of a CD.
+RZHYHU WKH DSSOLFDQW RU FRPPLWWHH PD\ GHFLGH WR À[ KLJKHU DPRXQW RI
IHHV WKDQ WKH VDLG PLQLPXP À[HG IHH DIWHU WDNLQJ LQWR FRQVLGHUDWLRQ PDUNHW
IDFWRUV VXFK DV VL]H DQG VFDOH RI EXVLQHVV RSHUDWLRQV RI WKH &' EXVLQHVV Amendment to Voluntary Liquidation Regulations
sector in which CD operates, level of operating economic activity of CD and 7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD 9ROXQWDU\
complexity related to process. Liquidation Process) (Second Amendment) Regulations, 2022 on September
16, 2022. The amended regulations lay down the manner and period of
(c) For the resolution plan approved by the committee on or after October
1, 2022, the committee may decide to pay, after approval of such resolution retention of records relating to voluntary liquidation of a corporate person.
plan by the AA on commencement of payment to creditors by the resolution
DSSOLFDQW SHUIRUPDQFH OLQNHG LQFHQWLYH IHH QRW H[FHHGLQJ D WRWDO RI ÀYH Amendment to IU Regulations
crore rupees; 7KH ,%%, QRWLÀHG WKH ,QVROYHQF\ DQG %DQNUXSWF\ %RDUG RI ,QGLD ,QIRUPDWLRQ
D IRU WLPHO\ VXEPLVVLRQ RI UHVROXWLRQ SODQ WR WKH $$ DV VSHFLÀHG XQGHU Utilities) (Second Amendment) Regulations, 2022 on September 20, 2022.
Table-2 of Schedule-II to the said amendment regulations, and/or The amended regulations provide for the revised fee structure for making
an application for registration as an IU as well as during the continuity of
b. for value maximisation, at the rate of one per cent of the amount by registration. The amendment is effective from October 1, 2022.
which the realisable value is higher than the liquidation value, or
c. other than a. or b. above, as the committee may deem necessary. Circulars
(d) The fee under amendment regulations may be paid from the funds, Revision of fees for Limited Insolvency Examination and Valuation
available with the CD, contributed by the applicant or members of the Examinations
FRPPLWWHH DQG RU UDLVHG E\ ZD\ RI LQWHULP ÀQDQFH DQG WKH VDPH VKDOO EH
included in the insolvency resolution process cost. The IBBI vide its circular dated August 31, 2022 revised the fee applicable
for Limited Insolvency Examination and Valuation Examinations from
7KH ,%%, QRWLÀHG WKH ,%%, ,QVROYHQF\ 5HVROXWLRQ 3URFHVV IRU &RUSRUDWH ` 1,500 plus applicable GST to ` 5,000 plus applicable GST. The revised fee
Persons) (Fourth Amendment) Regulations, 2022 on September 16, 2022. is applicable for enrolment for examinations on or after October 1, 2022.
The amended regulations (a) enable the RP and the committee of creditors
(CoC) to issue request for resolution plan a second time for sale of one Details of matters pending with Supreme Court of India and various
or more of assets of the CD in cases where no resolution plan has been
High Courts
received for the CD as a whole; (b) enable marketing of assets of the CD;
F FKDQJH WLPHOLQH IRU ÀOLQJ DSSOLFDWLRQ IRU SUHIHUHQWLDO DQG RWKHU The IBBI vide its circular dated September 13, 2022 advised the IPs to
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transactions on or before 130 day of insolvency commencement date (ICD) inform the Board about any important issues relating to vires, interpretation
and to provide a copy of the said application to the prospective resolution and applicability of the provisions of the Code, Rules and Regulations made
applicants to enable them to account for such information while proposing thereunder which are being contested before the High Courts (HCs) and
the resolution plan; (d) change the timeline for submission of information the Supreme Court of India (SC), in respect of any assignment handled by
memorandum (IM) to on or before 95 day from the ICD from 54 day and them as on date. Further, for any future case, the information as above shall
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also mandates the additional information to be provided in the IM; (e) enable EH VXEPLWWHG E\ ,3V DV DQG ZKHQ DQ\ VXFK FDVH LV ÀOHG EHIRUH WKH +RQ·EOH
the CoC to examine whether it wants to explore option of compromise SC and HCs.

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11/15/2022 12:24:48 PM
IBBI newsletter.indd 6
IBBI newsletter.indd 6 11/15/2022 12:24:48 PM