On July 14, 2021, the Insolvency and Bankruptcy Board of India makes the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021 further to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
- In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, in regulation 3 relating to Eligibility for resolution professional,
(i) in sub–regulation (1) (2), for the words “a resolution professional”, the words “an interim resolution professional or a resolution professional, as the case may be,” shall be substituted;
(ii) for sub–regulation (3), the following sub–regulation shall be substituted :–
“(3) An interim resolution professional or a resolution professional, who is a director or a partner of an insolvency professional entity, shall not continue as the interim resolution professional or resolution professional, as the case may be, in a corporate insolvency resolution process, if the insolvency professional entity or any other partner or director of such insolvency professional entity represents any other stakeholder in that corporate insolvency resolution process.”.
- In the principal regulations, after regulation 4A relating to Choice of authorised representative, the following regulation shall be inserted:–
“4B. Disclosure of change in name and address of corporate debtor.
Where a corporate debtor has changed its name or registered office address during the period of two years preceding the insolvency commencement date, the interim resolution professional or resolution professional, 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.”
- In the principal regulations, for regulation 27, the following regulation shall be substituted:–
“27. Appointment of Professionals.
(1) The resolution professional shall, within seven days of his appointment but not later than forty–seventh day
from the insolvency commencement date, appoint two registered valuers to determine the fair value and the
liquidation value of the corporate debtor in accordance with regulation 35.
(2) The interim resolution professional or the resolution professional, as the case may be, may appoint any professional, in addition to registered valuers under sub–regulation (1), to assist him in discharge of his duties in conduct of the corporate insolvency resolution process, if he is of the opinion that the services of such professional are required and such services are not available with the corporate debtor.
(3) The interim resolution professional or the resolution professional, as the case may be, shall appoint a
professional under this regulation on an arm‟s length basis following an objective and transparent process: Provided that the following persons shall not be appointed, namely: – (a) a relative of the resolution professional; (b) a related party of the corporate debtor; (c) an auditor of the corporate debtor at any time during the period of five years preceding the insolvency commencement date; (d) a partner or director of the insolvency professional entity of which the resolution professional is a partner or director.
(4) The invoice for fee and other expenses incurred by a professional appointed under this regulation shall be
raised in the name of the professional and be paid directly into the bank account of such professional.”
- In the principal regulations, in regulation 40B relating to Filing of Forms, after sub–regulation (1A), the following sub–regulation shall be inserted : –
“(1B) The resolution professional shall file Form CIRP 8 intimating details of his opinion and determination under regulation 35A, on or before the one hundred and fortieth day of the insolvency commencement date:
Provided that the filing of Form CIRP 8 shall not become due unless a period of thirty days has elapsed from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021.”