New Amendments in IBBI Regulations

On June 15, 2022, The Insolvency Bankruptcy Board of India (IBBI) amended insolvency regulations.

What are the amendments?

  • The amended insolvency regulations now require creditors to file information on assets and liabilities of their corporate debtors, as well as other relevant financial information while undergoing the corporate insolvency process.
  • It also provides for filing GST returns copy by operational creditors, as well as e-way bills as documentary evidence of debt and default.
  • Related Information can also be submitted as part of claim documents submitted to interim resolution professional and Insolvency Resolution Professional for easier verification of claims.
  • It also addresses the issue of treatment of avoidance applications filed to Adjudicating Authority after corporate insolvency resolution process (CIRP) ends.
  • Amendment defines significant difference in valuations during CIRP as well enables committee of creditors to make request to resolution professional on appointment of a third valuer.

The Insolvency and Bankruptcy Code, 2016 (IBC)

IBC is an Indian law, that creates a consolidated framework governing insolvency and bankruptcy proceedings for individuals, companies, and partnership firms. The code requires to submit resolution plan within 180 days. Under this code, the first insolvency resolution was passed by National Company Law Tribunal (NCLT) in Synergies-Dooray Automotive Ltd case in 2017.

Insolvency Bankruptcy Board of India (IBBI)

IBBI is the regulator to look after insolvency proceedings and entities such as Insolvency Professional Agencies (IPA), Information Utilities (IU) and Insolvency Professionals (IP) in India. The agency was established on October 1, 2016. In 2016, it was given statutory powers through Insolvency and Bankruptcy Code. IBBI covers Individuals, Companies, Partnership firms and Limited Liability Partnerships.

Members of IBBI

IBBI comprises of 10 members, including representatives from Ministry of Finance, Reserve Bank of India and Ministry of Law & corporate affairs. Presently, IBBI has 130 Insolvency Professional Entities listed on its website.

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