Aiming to reduce delays and realise better value, the Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Liquidation Process) (Second Amendment) Regulations 2022 (Amendment Liquidation Regulations), and IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations 2022 (Amendment Voluntary Liquidation Regulations).
These were notified on 16th September, official sources said.
The amendments would ensure better participation of stakeholders and streamline the liquidation process to reduce delays, they added.
After the modifications, the committee of creditors (CoC) constituted during the corporate insolvency resolution process (CIRP) would function as stakeholders consultation committee (SCC) during the first 60 days.
After adjudication of claims and within 60 days of initiation of process, SCC will be reconstituted based on the admitted claims.
Also, as per the modifications, the liquidator has been mandated to conduct meetings of SCC in a structured and time-bound manner with better participation of stakeholders.
The scope of mandatory consultation by the liquidator with SCC has been enhanced. Now, SCC may even propose replacement of liquidator to the adjudicating authority (AA) and fix the fees of the liquidator, in case the CoC has not fix it during the CIRP.
If any claim is not filed during the liquidation process, the amount of claim collated during CIRP will be verified by the liquidator.
Wherever the CoC decides that the process of compromise or arrangement may be explored during the liquidation process, the liquidator shall file application only in such cases before the adjudicating authority, for considering the proposal of compromise or arrangement, if any, within 30 days of the order of liquidation.
Also, specific event-based timelines have been stipulated for the auction process. In addition to this, before filing of an application for dissolution or closure of the process, SCC will advise the liquidator about the manner in which proceedings in respect of avoidance transactions or fraudulent or wrongful trading, will be pursued after closure of liquidation proceedings.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Overseas Investment Rules: Do They Open Floodgates to Money Laundering, Asks EAS Sarma
Moneylife Digital Team
24 September 2022
Expressing concerns over the overseas investment rules issued by the Union ministry of finance, India's former revenue secretary EAS Sarma has urged the ministry to revisit the overseas direct investment (ODI) regime and make sure...
For Non-profit Organisations Wanting To Get Listed on SME, There Should Be No I-T notice or Scrutiny: SEBI
21 September 2022
Markets regulator, the Securities and Exchange Board of India (SEBI) has said that any non-profit organisation (NPO), which wants to get listed, should be registered as a non-profit entity and the registration certificate should be...
Aiming decriminalisation of offences, CBDT issues revised guidelines for compounding
19 September 2022
Aiming decriminalisation of offences, the Central Board of Direct Taxes (CBDT) on Saturday issued revised guidelines for compounding of offences under the Income Tax Act, 1961 with reference to various offences covered under its...
EXCLUSIVE: Has RBI Allowed Backdoor Convertibility with a Limit?
16 September 2022
In an astonishing development, even as the Indian rupee is in trouble, the Reserve Bank of India (RBI), on 22 August 2022, issued a circular ostensibly to permit overseas investment by persons resident in India, in order to "enhance...