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IBBI amends the Insolvency and Bankruptcy Board of India Regulations, 2016 [Read Notifications]

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The Insolvency and Bankruptcy Board of India (IBBI) four notifications to amend the provisions of the Insolvency and Bankruptcy Board of India Regulations, 2016.

The board notified Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020; Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020; Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2020; and Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020.

The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020 amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The notification inserted Regulation 40C, which comprises of the special provisions related to timeline, “Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process.”

The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020 amended the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. The notification inserted Sub-Clause (5) and (7) to Clause 12A, “Provided that, for an application received on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020 and ending on the 30th September 2020, if the authorization for assignment is not issued, renewed or rejected by the Agency within thirty days of the date of receipt of application, the authorization shall be deemed to have been issued or renewed, as the case may be, by the Agency.”

The  Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2020 amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The notification inserted Regulation 47A pertaining to the exclusion of period of lockdown, “Subject to the provisions of the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of computation of the timeline for any task that could not be completed due to such lockdown, in relation to any liquidation process.”

The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 amended the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. The amendment inserted Regulation 13(2)(b) stating “Provided that for the financial year 2019-2020, an insolvency professional shall pay the fee under this clause on or before the 30th June, 2020.”

Further, Regulation 13(2)(c) was also inserted which stated, “Provided that when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such joining;”

To Read the full text of the Notifications CLICK HERE
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