The Insolvency and Bankruptcy Board of India (IBBI) has come out with certain measures pertaining to the professional services rendered and availed byinsolvency professionals (IPs), and the framework for insolvency professional entities (IPEs).[1]
With the objective of facilitating a smoother process for liquidation, ensuring accountability, and bolstering the confidence of stakeholders in the liquidation process, the Insolvency and Bankruptcy Board of India (IBBI) has introduced changes in the liquidation process. The same was implemented through the IBBI (Liquidation Process) (Amendment) Regulations, 2024, which were notified on February 12, 2024.
The changes proposed seek to address the existing issues and safeguard the interests of stakeholders. The comments on the proposals and the draft regulations may be shared by November 10, 2023.
The sixteen proposals put forward by the Board are as follows: –
No verification of prospective bidders
On June 19, 2024, the Insolvency and Bankruptcy Board of India (IBBI) released a discussion paper proposing to bring in significant amendments to the IBBI (Insolvency Resolution Process for Corporate Process) Regulations, 2016 (CIRP Regulations), aiming to streamline the process, enhance its effectiveness and reduce delays.[1] It complements the plan, unveiled earlier this month, to reduce the compliance burden on insolvency professionals.
The role of a liquidator comes with its own set of challenges and the computation of their fee is no exception. This article delves into a legal battle between a liquidator and the Insolvency and Bankruptcy Board (“IBBI”) concerning the Board’s clarifications[1] on fee calculation. The crux of the dispute?
An Insolvency Professional (IP) is entrusted with the management and administration of a Corporate Debtor’s affairs throughout the Corporate Insolvency Resolution Process (CIRP). He is responsible for managing, operating, and running the Corporate Debtor as a going concern during the said period by taking over the day-to-day affairs of the Corporate Debtor, complying with all the applicable laws, etc.
The Insolvency and Bankruptcy Code, 2016 (“IBC”/”Code”) came into force on 28th May, 2016 with the primary objective of consolidating and amending the laws of reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner to maximise the value of their assets. The Code has been evolving over the last six years, with changing scenarios and adapting to practical circumstances along the way. As a result, the Code has undergone amendments from time to time.