IBBI (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020


Quick Summary
The Insolvency and Bankruptcy Board of India (IBBI) has issued the Corporate Insolvency Resolution Process (Fifth Amendment) Regulations, 2020. These amendments, effective from their publication date, introduce new provisions for financial creditors to provide evidence of default, including certified bank entries or court orders. Additionally, the regulations mandate that the resolution professional must inform claimants about the payment principles of an approved resolution plan within fifteen days of its approval. These changes apply to ongoing and future corporate insolvency resolution processes.

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION

New Delhi, the 13th day of November, 2020

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020.

No. IBBI/2020-21/GN/REG066. —In exercise of the powers conferred by clause (t) of sub­section (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) (Fifth Amendment) Regulations, 2020.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as the principal regulations), after regulation 2, the following regulation shall be inserted, namely:-

2A. Record or evidence of default by financial creditor.

For the purposes of clause (a) of sub-section (3) of section 7 of the Code, the financial creditor may furnish any of the following record or evidence of default, namely:-

(a) certified copy of entries in the relevant account in the bankers’ book as defined in clause (3) of section 2 of the Bankers’ Books Evidence Act, 1891 (18 of 1891);

(b) an order of a court or tribunal that has adjudicated upon the non-payment of a debt, where the period of appeal against such order has expired.”.

3. In the principal regulations, in regulation 13, in sub-regulation (2), after clause (c), the following clause shall be inserted, namely: –

“(ca) filed on the electronic platform of the Board for dissemination on its website:

Provided that this clause shall apply to every corporate insolvency resolution process ongoing and commencing on or after the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020;”.

4. In the principal regulations, in regulation 39, after sub-regulation (5), the following sub-regulation shall be inserted, namely: –

“(5A) The resolution professional shall, within fifteen days of the order of the Adjudicating Authority approving a resolution plan, intimate each claimant, the principle or formulae, as the case may be, for payment of debts under such resolution plan:

Provided that this sub-regulation shall apply to every corporate insolvency resolution process ongoing and commencing on or after the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020;”.

Dr. M. S. SAHOO Chairperson

[ADVT.- …………]

Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG004, dated 30th November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020 published vide notification No. IBBI/2020-21/GN/REG064, dated the 7th August, 2020 in the Gazette of India, Extraordinary, Part III, Section 4, No. 317 on 7th August, 2020.

FAQ :

These regulations come into effect on the date of their publication in the Official Gazette.

A financial creditor can now submit a certified copy of entries in a banker's book or an order from a court or tribunal that has adjudicated non-payment of debt, provided the appeal period has expired.

Information related to the corporate insolvency resolution process must be filed on the Board's electronic platform for dissemination on its website.

The resolution professional must inform each claimant about the payment principles or formulae under an approved resolution plan within fifteen days of the Adjudicating Authority's order approving it.

Yes, these amendments apply to every corporate insolvency resolution process that is ongoing or commencing on or after the date these regulations come into force.

 

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