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IBBI notifies Insolvency Resolution Process for Corporate Persons (Fifth Amendment) Regulations, 2020 [Read Notification]

IBBI - Insolvency Resolution Process - Insolvency Professional - Corporate Persons (Fifth Amendment) Regulations - Taxscan

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020 which seeks to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The Insolvency and Bankruptcy Code, 2016 enables a financial creditor, among others, to initiate a corporate insolvency resolution process against a corporate debtor. The financial creditor, along with the application, is required to furnish “record of the default recorded with the information utility or such other record or evidence of default as may be specified”.

In exercise of this power, the IBBI amended the Regulations to specify two ‘other records or evidence of default’, namely, certified copy of entries in the relevant account in the bankers’ book, and order of a court or tribunal that has adjudicated upon the non-payment of a debt.

The IBBI amended the Regulations to require the IRP/RP to submit the list of creditors on an electronic platform for dissemination on its website. This will improve transparency and enable stakeholders to ascertain the details of their claims at a central place.

The IBBI further amended that the resolution professional shall, within 15 days of the order of the Adjudicating Authority approving a resolution plan, intimate each claimant, the principle or formulae, as the case may be, for payment of debts under such resolution plan.

However this shall apply to every corporate insolvency resolution process ongoing and commencing on or after the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020.

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