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News from the desk of Insolvency and Bankruptcy Board of India (IBBI)

July 22, 2021

Insolvency and Bankruptcy Board of India (“IBBI”) has vide its Notification dated 14th day of July, 2021 amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021 (“Regulations”). The said rules shall be effective from 14th day of July, 2021.

Some of the key amendments are mentioned below:-

Regulation No. Principal regulation Amendment
3 (1) An insolvency professional shall be eligible to be appointed as a resolution professional for a corporate insolvency resolution process of a corporate debtor. An insolvency professional shall be eligible to be appointed as an interim resolution professional or a resolution professional, as the case may be, for a corporate insolvency resolution process of a corporate debtor.
3 (2) A resolution professional, shall make disclosures at the time of his appointment and thereafter in accordance with the Code of Conduct. An interim resolution professional or a resolution professional, as the case may be, shall make disclosures at the time of his appointment and thereafter in accordance with the Code of Conduct.
4 (1) Without prejudice to section 17(2)(d), the interim resolution professional may access the books of account, records and other relevant documents and information, to the extent relevant for discharging his duties under the Code, of the corporate debtor held with- (a) depositories of securities etc. Without prejudice to section 17(2)(d), the interim resolution professional or the resolution professional, as the case may be, may access the books of account, records and other relevant documents and information, to the extent relevant for discharging his duties under the Code, of the corporate debtor held with- (a) depositories of securities etc.
4(B) Newly inserted in the amendment Disclosure of change in name and address of corporate debtor. Where a corporate debtor has changed its name or registered office address during the period of two years preceding the insolvency commencement date, the interim resolution professional or resolution professional, as the case may be, shall disclose all the former name(s) and registered office address(es) so changed along with the current name and registered office address in every communication, record, proceeding or any other document.
13 (2) (b) (2) The list of creditors shall be – (b) available for inspection by members, partners, directors and guarantors of the corporate debtor. (2) The list of creditors shall be – (b) available for inspection by members, partners, directors and guarantors of the corporate debtor or their authorised representatives.
19(1) Subject to this Regulation, a meeting of the committee shall be called by giving not less than five days’ notice in writing to every participant, at the address it has provided to a resolution professional and such notice may be sent by hand delivery, or by post but in any event, be served on every participant by electronic means in accordance with Regulation 20. Subject to this Regulation, a meeting of the committee shall be called by giving not less than five days’ notice in writing to every participant, at the address it has provided to an interim resolution professional or a resolution professional, as the case may be and such notice may be sent by hand delivery, or by post but in any event, be served on every participant by electronic means in accordance with Regulation 20.

The complete text of the Regulations may be viewed at below link:

https://www.ibbi.gov.in/uploads/legalframwork/48e2aa83bdcfb902ffb5852fccaac8c1.pdf

Article contributed by:

Munesh Gaur

Senior Associate- Legal

MBG Corporate Services


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