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IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018

GAZETTE OF INDIA
EXTRAORDINARY
PART III, SECTION 4
PUBLISHED BY AUTHORITY

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION

New Delhi, the 3rd July, 2018

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) (THIRD AMENDMENT) REGULATIONS, 2018

No. IBBI/2018-19/GN/REG031. -In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely: –

  1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018.
    (2) They shall come into force on the date of their publication in the Official Gazette and shall apply to corporate insolvency resolution processes commencing on or after the said date.
  2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 2, in sub-regulation (1), after clause (a), the following clause shall be inserted, namely: –
    “(aa) “class of creditors” means a class with at least ten financial creditors under clause (b) of sub-section (6A) of section 21 and the expression, “creditors in a class” shall be construed accordingly.”.
  3.  In the principal regulations, in regulation 3, –
    (a) in sub-regulation (1), in clause (c), in sub-clause (ii), for the words “ten per cent”, the words “five per cent” shall be substituted;
    (b) after sub-regulation (1), the following sub-regulation shall be inserted, namely:-
    “(1A) Where the committee decides to appoint the interim resolution professional as resolution professional or replace the interim resolution professional under section 22 or replace the resolution professional under section 27, it shall obtain the written consent of the proposed resolution professional in Form AA of the Schedule.”.
  4. In the principal regulations, after regulation 4, the following sub-regulations shall be inserted, namely: –
    “4A. Choice of authorised representative
    (1) On an examination of books of account and other relevant records of the corporate debtor,the interim resolution professional shall ascertain class(s) of creditors, if any.

       (2) For representation of creditors in a class ascertained under sub-regulation (1) in the committee, the interim                resolution professional shall identify three insolvency professionals who are-
(a) not his relatives or related parties;
(b) eligible to be insolvency professionals under regulation 3; and
(c) willing to act as authorised representative of creditors in the class.
(3) The interim resolution professional shall obtain the consent of each insolvency professional identified                      under sub-regulation (2) to act as the authorised representative of creditors in the class in Form AB of the                      Schedule.”.

          5. In the principal regulations, in regulation 6,
(i) in sub-regulation (2), after clause (b), the following clauses shall be inserted, namely: – “(ba) state where                     claim forms can be downloaded or obtained from, as the case may be; (bb) offer choice of three insolvency                    professionals identified under regulation 4A to act as the authorised representative of creditors in each class;                and”. (ii) in sub regulation (3), the words “Clarification- The expenses on the public announcement shall not                form part of insolvency resolution process costs” shall be omitted.

       6. In the principal regulations, in regulation 7, in sub-regulation (1), for the words, “submit proof of claim”, the                 words “submit claim with proof” shall be substituted.

       7. In the principal regulations, in regulation 8, – (a) in sub-regulation (1), for the words, “financial creditor of the             corporate debtor shall submit proof of claim”, the words “financial creditor, other than a financial creditor
belonging to a class of creditors, shall submit claim with proof” shall be substituted; (b) in sub-regulation (2),               in clause (b), in sub-clause (iii), for the word “repaid”, the word “paid” shall be substituted.

Click here to read all the amendments in IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018.

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