On June 01, 20201, the Insolvency and Bankruptcy Board of India (IBBI) issued the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2021. These Guidelines shall come into effect for appointments as IRP, Liquidator, RP and BT with effect from July 1, 2021.
Key points discussed below:
- Every IP is equally qualified to be appointed as the IRP, Liquidator, RP or BT of any corporate or individual insolvency resolution, liquidation or bankruptcy process, as the case may be, if otherwise not disqualified, and in the interest of avoiding administrative delays, the Board considers necessary to have these guidelines to prepare a Panel of IPs.
Panel of IPs
- The Board will prepare a common Panel of IPs for appointment as IRP, Liquidator, RP and BT and share the same with the Adjudicating Authority (‘AA’) (NCLT and DRT) in accordance with these Guidelines.
- The Panel will have Zone wise list of IPs based on the registered office (address as registered with the Board) of the IP.
- The Panel will have validity of six months and a new Panel will replace the earlier Panel every six months. For example, the first Panel under these Guidelines will be valid for appointments during July – December 2021, and the next Panel will be valid for appointments during January – June 2022, and so on.
- The NCLT may pick up any name from the Panel for appointment of IRP, Liquidator, RP or BT, for a CIRP, Liquidation Process, Insolvency Resolution or Bankruptcy Process relating to a corporate debtors and personal guarantors to corporate debtors, as the case may be. 7.5 The DRT may pick up any name from the Panel for appointment as RP or BT, for an Insolvency Resolution or Bankruptcy Process for personal guarantors to corporate debtors, as the case may be.
Inclusion of IPs in the Panel
- An IP will be eligible to be in the Panel of IPs, if –
- there is no disciplinary proceeding, whether initiated by the Board or the IPA of which he is a member, pending against him;
- he has not been convicted at any time in the last three years by a court of competent jurisdiction;
- he expresses his interest to be included in the Panel for the relevant period;
- he undertakes to discharge the responsibility as IRP, Liquidator, RP or BT, as he may be appointed by the AA;
- he holds an Authorisation for Assignment (AFA), which is valid till the validity of Panel. For example, the IP included in the Panel for appointments during July – December 31, 2021 should have AFA valid up to December 31, 2021.
2. An IP will be included in the Panel against the Zone where his registered office (his address as registered with the Board) is located. For example, an IP located in the city of Surat (Gujarat) will be included in Ahmedabad Zone, which covers the State of Gujarat. He shall be eligible for appointment by any bench of NCLT or DRT located in the State of Gujarat, Union Territory of Dadra and Nagar Haveli, and Union Territory of Daman and Diu.