IBBI (Insolvency Resolution Process for Corporate Persons) (Second 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 (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2019 to further amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. It will come into force on the date of its publication in the Official Gazette.

The amendments made in IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 are:

 While approving a resolution plan, the committee may make a best estimate of the amount required to meet liquidation costs, in consultation with the resolution professional, in the event an order for liquidation. The committee shall make a best estimate of the value of the liquid assets available to meet the liquidation costs.

 While approving a resolution plan, the committee may recommend that the liquidator may first explore sale of the corporate debtor or sale of the business of the corporate debtor as a going concern if an order for liquidation is passed. 

 The committee may fix the fee payable to the liquidator.

 A new Form 4A regarding “application for withdrawal of corporate insolvency resolution process” has been inserted.

[Notification No. IBBI/2019-20/GN/REG048]


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