The Insolvency and Bankruptcy Board of India ( IBBI ) issued a circular on withdrawal of unclaimed or undistributed amounts from Corporate Liquidation Account.
Regulation 46 of the Insolvency and Bankruptcy Board of India ( Liquidation Process ) Regulations, 2016 provides a framework for the management of unclaimed deposits and undistributed proceeds during the liquidation process. As per the regulation, liquidators are mandated to deposit unclaimed / undistributed amounts into the Corporate Liquidation Account and inform the Insolvency and Bankruptcy Board of India (IBBI / Board) in Form-I of the Liquidation Regulations.
To facilitate the request received from a stakeholder, under sub-regulation (7) of regulation 46, who claims to be entitled to any amount deposited into the Corporate Liquidation Account for withdrawal before the dissolution of the corporate debtor, the liquidator, after due verification, shall apply to the Board in the form as per Annexure, for the release of the amount for onward distribution to such stakeholder.
The IBBI issued the circular in exercise of the powers conferred under section 196 of the Insolvency and Bankruptcy Code, 2016.
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