IBBI amends Insolvency Resolution Process for Corporate Persons Regulations, 2016 - (15 Jun 2022)
Insolvency
Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 (CIRP Regulations). The amended regulations are effective from 14th June, 2022. The amendment provides the operational creditors to furnish extracts of Form GSTR-1, Form GSTR-3B and e-way bills, along with the application filed under Section 9 of the Insolvency and bankruptcy Code, 2016 (IBC). These additional set of documents, can be used as evidence of transaction with the corporate debtor, debt and default easing the process of admission. Creditors filing applications under Section 7 or 9 of the IBC are required to furnish details of their PAN and Email ID to ensure smooth correspondence.
In order to improve information availability, the amendment places a duty on corporate debtor, its promoters to provide the information in such format and time as sought by the resolution professional. The amendment places a duty on the creditors to share information regarding the assets and liabilities of the corporate debtor, the financial statements and other relevant financial information from their records and available reports.
The Amendment also addresses the issue of treatment of avoidance applications filed with the Adjudicating Authority after closure of the corporate insolvency resolution process (CIRP). It provides that, the resolution plan shall provide for manner in which such applications will be pursued after the approval of the resolution plan. The amendment includes a definition of significant difference in valuations during CIRP and enables the committee of creditors to make a request to the resolution professional regarding the appointment of a third valuer.
Tags : CORPORATE PERSONS REGULATION AMENDMENT
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