The Insolvency and Bankruptcy Board of India (IBBI) notified that the resolution professional shall, within seven days of his appointment but not later than forty-seventh day from the insolvency commencement date, appoint two registered valuers to determine the fair value and the liquidation value of the corporate debtor.
The Board has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021 which seeks to amend Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
In the principal regulations, regulation 4B, shall be inserted which pertains to Disclosure of change in name and address of corporate debtor and reads “where a corporate debtor has changed its name or registered office address during the period of two years preceding the insolvency commencement date, the interim resolution professional or resolution professional, as the case may be, shall disclose all the former name(s) and registered office address(es) so changed along with the current name and registered office address in every communication, record, proceeding or any other document.”
The Board has amended the Regulation 27 regarding Appointment of Professionals.
The notification said that the resolution professional shall, within seven days of his appointment but not later than forty-seventh day from the insolvency commencement date, appoint two registered valuers to determine the fair value and the liquidation value of the corporate debtor in accordance with regulation 35.
Further, the interim resolution professional or the resolution professional, as the case may be, may appoint any professional, in addition to registered valuers under sub-regulation (1), to assist him in discharge of his duties in conduct of the corporate insolvency resolution process, if he is of the opinion that the services of such professional are required and such services are not available with the corporate debtor.
The interim resolution professional or the resolution professional, as the case may be, shall appoint a professional under this regulation on an arm‟s length basis following an objective and transparent process. Provided that the following persons shall not be appointed, namely a relative of the resolution professional; a related party of the corporate debtor; an auditor of the corporate debtor at any time during the period of five years preceding the insolvency commencement date; a partner or director of the insolvency professional entity of which the resolution professional is a partner or director.
The invoice for fee and other expenses incurred by a professional appointed under this regulation shall be raised in the name of the professional and be paid directly into the bank account of such professional.
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