On November 20, 2019, Insolvency and Bankruptcy Board of India (IBBI) has notified Regulations for Insolvency Resolution and Bankruptcy Proceedings of Personal Guarantors to Corporate Debtors (CDs). This has been done on the sidelines of the notification by Central Government on proceedings of Personal Debtors to Corporate Debtors. These provisions would be effective from December 1.Key Points:
- Title of Regulations:
i.These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019.
ii.Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 specifying the details of the bankruptcy process for personal guarantors to CDs
- Applicability – These rules will be applicable to insolvency resolution process for personal guarantors to corporate debtors (CDs).
- Under the Insolvency and Bankruptcy Code (IBC), 2016, individuals are classified into three classes – personal guarantors to corporate debtors, partnership firms and proprietorship firms, and other individuals.
How they will be helpful?
These rules state process and forms of making applications for initiating insolvency resolution and bankruptcy proceedings against personal guarantors to CDs, withdrawal of such applications, forms for public notice for inviting claims from the creditors, etc. It envisages reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner. You can go through the rules from here:
Establishment- 1st October, 2016 under Insolvency and Bankruptcy Code, 2016
Headquarter- New Delhi
Chairperson- MS Sahoo