Summary of the notification issued by IBBI on 14/07/2021
IBBI amends IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 with immediate effect
Key Highlights of the amendment are as follows:
- Appointment of an Insolvency Professional (IP) as an Interim Resolution Professional (IRP): An IP shall be eligible to be appointed as an IRP for a Corporate Insolvency Resolution Process (CIRP) of a corporate debtor and shall make necessary disclosures on his/her appointment as applicable to a Resolution Professional. IRP shall also discontinue if the IPE or any other partner/director or such IPE represents any other stakeholder in that CIRP.
- Disclosure of change in name and address of Corporate Debtor (CD): If a CD has changed its name or registered office address during the period of two years preceding the insolvency commencement date, the IRP or the RP, as the case may be, shall disclose all the former name(s) and registered office address(es) so changed along with the current name and registered office address in every communication, record, proceeding or any other document.
- Appointment of a Registered Valuer: The IRP or RP, as the case may be, may appoint any professional, in addition to registered valuers to assist him in discharge of his duties in conduct of the CIRP, if he is of the opinion that the services of such professional are required and such services are not available with the CD. IRP/RP shall ensure that the professional appointed under this regulation shall be on an arm’s length basis following an objective and transparent process.
- Filing of Form CIRP 8: The resolution professional shall file Form CIRP 8 intimating details of his opinion and determination under regulation 35A, on or before 140th day of the insolvency commencement date and this shall not become due unless a period of 30 days has elapsed from the date of commencement of this amendment.
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