BACKGROUND
The Insolvency & Bankruptcy Board of India (IBBI) has sought comments on the proposed amendment to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2024, to make the constitution of a monitoring committee mandatory for the smooth implementation of the resolution plan.
Introduction
On November 07, 2024, the Supreme Court of India (“Court”) in its judgment in State Bank of India & Ors. vs. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch & Anr.,[1] directed the liquidation of Jet Airways (India) Limited (“Jet”), bringing an end to the five-year long saga of efforts to revive the beleaguered airline.
Background
The Insolvency and Bankruptcy Board of India (IBBI) has on 24 September 2024 published the IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2024 (Amendment Regulations) with the primary aim to streamline and reduce the delays faced in insolvencies containing class of creditors.
Amendments Introduced
On July 23, 2024, the finance minister presented a budget focused on job creation, tax reforms, and support for micro, small and medium enterprises (“MSMEs”). For the Insolvency and Bankruptcy Code, 2016 (“IBC”) two reforms were announced: the establishment of an integrated technology platform to facilitate improved outcomes and the strengthening of tribunals and appellate tribunals, including the creation of additional tribunals some of which would be exclusively designated for matters under the Companies Act, 2013.
BACKGROUND
The Insolvency and Bankruptcy Board of India (IBBI) has floated a paper which envisages the disclosure of the corporate debtor’s status as a micro, small and medium enterprises (MSME) in the information memorandum. Stakeholders are invited to comment on this proposal by September 12.
The amendments recently notified to the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017, require the information utility to verify key details such as the e-mail address of the debtor, the document showing proof of debt, etc. before issuance of record of default.
With a view to ensure authenticity, the Insolvency and Bankruptcy Board of India (IBBI) has mandated a Valuation Report Identification Number (VRIN) for each valuation conducted under the Insolvency and Bankruptcy Code, 2016.
The real estate industry forms a significant portion of the flourishing Indian economy. However, it is also plagued with inordinate delays, cash-flow issues and anguished homebuyers. The Insolvency and Bankruptcy Board of India (“IBBI”) has recently added to the array of steps being taken to address these issues.