Insolvency and Bankruptcy Board of India (IBBI) amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 to enhance the discipline, transparency, and accountability in corporate insolvency proceedings.
i.To reorganise the CD, the interim resolution professional (IRP)/ resolution professional (RP) were directed to find out either the Corporate Debtor (CD) is subjected to avoidance transactions and required to file an opinion about that to the Adjudicating Authority.
- Avoidance transactions include preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading.
ii.IBBI amended the regulations and directed the insolvency professional (IP), who is conducting the Corporate Insolvency Resolution Process (CIRP) to disclose all former names and registered office address(es) so far changed (2 years) preceding the commencement of insolvency along with the current name and address of the CD.
iii.IBBI also allowed the IRP/ RP to appoint any professional, including registered valuers, to assist him in the discharge of his duties while conducting the CIRP.
- The appointment should be made on an arm’s length basis with transparency; It is also applicable only in case of such services are not available with the CD.
About Insolvency & its Regulator:
i.Insolvency: It is a situation where individuals or companies are unable to repay their outstanding debt.
ii.Insolvency Code: In order to resolve those insolvencies Insolvency and Bankruptcy Code, 2016 (IBC) the bankruptcy law of India for insolvency and bankruptcy is formed.
iii.Insolvency Regulator: The Code establishes the IBBI), as an insolvency regulator to oversee the insolvency proceedings in the country and regulate the entities registered under it.
Recent Related News:
On March 19, 2021, in New Delhi, the Insolvency and Bankruptcy Board of India (IBBI) in association with the British High Commission has prepared and released a publication titled “Handbook on Ethics for Insolvency Professionals: Ethical and Regulatory Framework”, a practical guide for insolvency professionals(IPs) for discharging their duties ethically.
About Insolvency and Bankruptcy Board of India(IBBI):
Establishment – 1st October, 2016 under the Insolvency and Bankruptcy Code, 2016
Headoffice – New Delhi
Chairperson – M. S. Sahoo