IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021

The Insolvency and Bankruptcy Board of India (IBBI), vide notification dated July 14, 2021, further amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations).

IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021 (Amended CIRP Regulations) will apply to every ongoing corporate insolvency resolution process (CIRP) or which is commencing on or after July 14, 2021. Following key changes have been notified: –

1. A new Regulation (Regulation 4B) has been added for directing the interim resolution professional (IRP)/resolution professional (RP) to ensure that they disclose all the former name(s) and/or registered office address(es) of the corporate debtor, where the same was changed during the period of two years preceding the insolvency commencement date, along with the current name and registered office address, in every communication, record, proceeding or any other document pertaining to the said corporate debtor.
2. The list of creditors would now, apart from the members, partners, directors and guarantors of the corporate debtor, be also available for inspection by the authorised representatives of the corporate debtor.
3. Regulation 27 of CIRP Regulations has been substituted, to empower the IRP/RP to appoint any professional, in addition to registered valuers, to assist him in conduct of the CIRP, where the IRP/RP feels that the services of such professional are required and such services are not available with the corporate debtor. Such additional professional(s) will be appointed on an arm’s length basis following an objective and transparent process.
4. The RP is not required anymore to intimate IBBI while determining if the corporate debtor has undertaken preferential, undervalued, fraudulent, wrongful and/or other unlawful transactions.
5. The RP is now required to file Form CIRP 8 with IBBI intimating details of his opinion and determination under regulation 35A (Preferential and other transactions), on or before the 140^th day of the insolvency commencement date. However, the filing of Form CIRP 8 shall not become due till August 14, 2021. Corresponding amendments have been introduced in Form H (Compliance Certificate).