'VB-G RAM G' national launch to begin from AP on July 1: Chouhan (See 'Corp Brief') Iconic Bridges: Pillars of New India's Infrastructure Transformation (See 'Corp Brief') 250 cyclists to join Union Sports Minister as Fit India Movement links cycling, yoga and healthy living (See 'Corp Brief') CCI okays TVS Emerald to acquire shares of combination of PGIM India Asset & PGIM India Trustees (See 'Corp Brief') IPR - Search engine cannot be permitted to auction or monetise that asset without proprietor's authorisation: HC (See 'Legal Desk') CCI approves subscription of equity by Kedaara Pearl & Kedaara Capital in Axis Finance (See 'Corp Brief') CCI nod for combination of certain CCPS and Romsons Group (See 'Corp Brief') DoPPW and J&K Bank sign MoU to expand pension-related services in UT (See 'Corp Brief') NHAI to transit towards Predictive Asset Management for Maintenance of NHs (See 'Corp Brief') PMLA - 180-day limit for provisional attachment cannot be extended due to Supreme Court's COVID limitation orders: HC (See 'Legal Desk') ASI and National Museum of Denmark sign MoU for underwater Archaeological Investigation (See 'Corp Brief') Leyland, Switch Mobility to provide discounts for replacement of old trucks and buses (See 'Corp Brief') MeitY convenes Consultation on 'Supporting AI Transformation of IT Services Industry' (See 'Corp Brief') IPR - Copyright - object of Section 57 is to lift an author's status beyond material gains of copyright & give it special status & put intellectual property on a higher pedestal than normal objects of copyright: HC (See 'Legal Desk') Railways approves Rs.201 Crore Kavach Project for Ambala Division (See 'Corp Brief') IICA hosts National Conference on 'Redefining India's Restructuring Ecosystem' (See 'Corp Brief') Companies Act - Aggregate allotment of shares to 284 persons through 7 issuances demonstrates fund-raising exercise beyond scope of statutory exemption; it constitutes deemed public offer attracting requirements of Companies Act & applicable SEBI regulations: SAT (See 'Legal Desk') PM Modi, Macron inaugurate 'Bharat Innovates 2026' (See 'Corp Brief') Holistic Access to Justice Scheme and 'Reforms Utsav' held in HP (See 'Corp Brief') National Urban Learning Platform launched as urban arm of iGOT-Mission Karmayogi (See 'Corp Brief') CSIR-NIScPR Organized Skill Training Programme on Basics of Koha Software (See 'Corp Brief') PMLA- Forfeiture unsustainable where nexus between property and illegally acquired income not established: SAFEMA (See 'Legal Desk') The Income Tax Act, 2025: Privacy, Power, and Constitutional Scrutiny (See CORP EINSICHT )

Print

Bankruptcy Board amends Insolvency Resolution Process Regulations, 2016

Published: Jul 21, 2021

By TIOLCORPLAWS News Service

NEW DELHI, JULY 21, 2021: THE 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 on 14th July, 2021.

The amendment regulations enhance the discipline, transparency, and accountability in corporate insolvency proceedings:

A corporate debtor (CD) may have changed its name or registered office address prior to commencement of insolvency. 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 requires an insolvency professional (IP) conducting CIRP to disclose all former names and registered office address(es) so changed in the two years preceding the commencement of insolvency along with the current name and registered office address of the CD, in all its communications and records.

The interim resolution professional (IRP) or resolution professional (RP) may appoint any professional, including registered valuers, to assist him in discharge of his duties in conduct of the CIRP. The amendment provides that the IRP/RP may appoint a professional, other than registered valuers, if he is of the opinion that the services of such professional are required and such services are not available with the CD. Such appointments shall be made on an arm's length basis following an objective and transparent process. The invoice for fee shall be raised in the name of the professional and be paid into his bank account.

The RP is duty bound to find out if a CD has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the Adjudicating Authority seeking appropriate relief. This not only claws back the value lost in such transactions increasing the possibility of reorganisation of the CD through a resolution plan, but also disincentivises such transactions preventing stress to the CD. For effective monitoring, the amendment requires the RP to file Form CIRP 8 on the electronic platform of the Board, intimating details of his opinion and determination in respect of avoidance transactions. The IBBI has specified the format of CIRP 8 through a Circular issued yesterday. This Form needs to be filed in respect of every CIRP ongoing or commencing on or after 14th July, 2021.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.