Insolvency and Bankruptcy Board of India notifies the third amendment in IBBI (Insolvency Resolution for Corporate Persons) in exercise of its powers conferred by clause (t) of subsection (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016.
The Insolvency Professional conducts the CIRP and manages its operations during the CIRP procedure. For that purpose IBBI and IPA has the obligation to monitor the performance of IPs, and collect, maintain and disseminate information and records relating to insolvency process of corporate debtors. It also creates an obligation on IPs to forward/submit certain information and records relating to CIRP to the IPA and IBBI.
To facilitate the IBBI, the IPAs and the IPs to discharge of their statutory obligations, and for the interest of transparency and accountability in conduct of the Amendment Regulations require the IPs to file a set of Forms, covering the time period of a CIRP, online on an electronic platform hosted on the website of the IBBI. IP shall be liable to action permissible under the Code, including refusal to issue or renew Authorisation for Assignment, for failure to file a Form or for inaccurate or delayed filing.
The Amendments are as follows:
1. The authorised representative shall cast his vote in respect of each financial creditor he represents in accordance with the provisions of sub-section (3) or sub-section (3A) of section 25A, as the case may be;
2. Restructuring of the corporate debtor, by way of merger, amalgamation and demerger;
3. The amount payable under a resolution plan – (a) to the operational creditors shall be paid in priority over financial creditors; and (b) to the financial creditors, who have a right to vote under sub-section (2) of section 21 and did not vote in favour of the resolution plan, shall be paid in priority over financial creditors who voted in favour of the plan
4. The insolvency professional, interim resolution professional or resolution professional, as the case maybe, shall file the forms, alongwith the enclosures thereto, on an electronic platform of the Board, as per timelines stipulated against each form.
5. The filing of a form under this regulation after due date of submission, whether by correction, updation or otherwise, shall be accompanied by a fee of Rs. 500 per form.
Click here for the amendment: Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons