GOVERNMENT HAS AMENDED IBBI REGULATIONS, 2016

GOVERNMENT HAS AMENDED IBBI REGULATIONS, 2016

Context:

Recently, the Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Significance of the Amendment:

• To enhance the transparency, discipline, and accountability in corporate insolvency proceedings.

About Amendment:

• The amendment allows an Insolvency Professional (IP) conducting Corporate Insolvency Resolution Process (CIRP) to reveal all former names and registered office address(es) so changed in the 2 years after the beginning of insolvency along with the current name and registered office address of the Corporate Debtor (CD), in all its communications and records.
• CIRP incorporates important steps to revive the company such as looking for a new buyer to sell the company as a going concern, raising fresh funds for operation, etc.
• CD is any corporate organization that owes a debt to any person.
• A CD may have changed its name or registered office address prior to the commencement of insolvency. Therefore, the stakeholders may find it difficult to relate to the new name or registered office address and consequently fail to participate in the CIRP.
• The amendment implies that the Interim Resolution Professional (IRP) or Resolution Professional (RP) may appoint a professional, other than registered valuers if he is of the opinion that the services of such professionals are required and such services are not available with the CD.