The Insolvency and Bankrupcty Board of India (IBBI) amends the CIRP Regulations, the Liquidation Process Regulations and the IP Regulations

Posted On : April 09, 2018

The IBBI has introduced amendments to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulatioms,2016 (CIRP Regulations),the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Liquidation Process Regulations) and the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations,2016 (IP Regulations)
 
The important amendments introduced in the CIRP Regulations include:
(a) The requirement for the identification of the prospective resolution applicants on or before the 105th date from the insolvency commencement date of a corporate debtor.
(b) The definition of expenses incurred by an interim resolution professional/resolution professional to include any fees to be paid to an insolvency resolution entity and any professional advisor appointed by the interim resolution professional/resolution professional.
(c)Disclosure of item wise insolvency resolution process costs by the interm resolution professional/ resolution professional in a manner as may be required by the IBBI.
 
Further, the important amendments to the Liquidation Process Regulations include:
(a) Clarification that the interest on interim finance raised by the interm resolution professional/resolution professional/liquidator with respect to  a corporate debtor will formpart of the liquidation costs.
(b) Allowing the liquidator to sell the corporate debtor as a going concern.
 
Important amendments to the IP Regulations include:
(a) Eligibility of an individual as a resolution professional will now be determined if such person has passed the ‘Limited Insolvency Examination’ within the last 12 monthsand has completion a pre-registration educational course from an insolvency professional agency.
(b) The syllabus of the examination will be published on the IBBI website at least 3 months before the examination.
(c) Individual with required experience of 10/15 years shall be eligible for registration as an insolvency professional and an individual with little or no experience shall be eligible for registration on completion of the graduation insolvency programme as prescribed by IBBI.
(d) An insolvency professional is required to undergo continuing professional training as may be required by IBBI.
(e) Clarification on the role of the insolvency professional entities and eligibility requirements of an insolvency professional entity.
(f) An insolvency professional is required to disclose the fee payable to him, to the insolvency professional entity and the fee payable to the professionals engaged by him. The insolvency professional agency of which he is a member is required to publish this disclosure on its website.
 
The full text of the amendments to the CIRP Regulations, the Liquidation Process Regulationsand the IP Regulations can be seen at the following links :
1. Amendments to the CIRP Regulations http://ibbi.gov.in/webadmin/pdf/whatsnew/2018/Mar/27th%20Mar%202018%20IBBI%20(Insolvency%20Resolution%20Process%20For%20Corporate%20Persons)%20(Second%20Amendment)%20Regulations,%202018_2018-03-28%2018_27_33_2018-03-28%2019:03:13.pdf
 
2. Amendments to the Liquidation Process Regulations http://ibbi.gov.in/webadmin/pdf/whatsnew/2018/Mar/27th%20Mar%202018%20IBBI%20(Liquidation%20Process)%20(Amendment)%20Regulations,%202018_2018-03-28%2018_19_55_2018-03-28%2019:02:28.pdf
 
3. Amendments to the IP Regulations 
http://ibbi.gov.in/webadmin/pdf/whatsnew/2018/Mar/27th%20Mar%202018%20IBBI%20(Insolvency%20Professionals)%20(Amendment)%20Regulations,%202018_2018-03-28%2018_18_56_2018-03-28%2019:01:51.pdf