IBBI (Liquidation Process) (Amendment) Regulations, 2019

Jul 26, 2019 | by Avantis RegTech Legal Research Team

The Insolvency and Bankruptcy Board of India (IBBI), on July 25, 2019, has issued a Notification to publish the IBBI (Liquidation Process) (Amendment) Regulations, 2019 to further amend the IBBI (Liquidation Process) Regulations, 2016. It will come into force on the date of its publication in the Official Gazette.

The amendments made in the IBBI (Liquidation Process) Regulations, 2016 are:

 Where the committee of creditors did not approve a plan, the liquidator shall call upon the financial creditors, being financial institutions, to contribute the excess of the liquidation costs over the liquid assets of the corporate debtor, as estimated by him, in proportion to the financial debts owed to them by the corporate debtor.

 A compromise or arrangement must be completed within ninety days of the order of liquidation.

 The public announcement shall call upon stakeholders to submit their claims or update their claims submitted during the corporate insolvency resolution process, as on the liquidation commencement date; and provide the last date for submission or updation of claims, which shall be thirty days from the liquidation commencement date.

 A secured creditor shall inform the liquidator of its decision to relinquish its security interest to the liquidation estate or realise its security interest, as the case may be, in Form C or Form D of Schedule II.

 The liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date, based on the list of stakeholders prepared, to advise him on the matters relating to sale.

 A new Form H regarding “Compliance Certificate” has been inserted.

[Notification No. IBBI/2019-20/GN/REG047]


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