IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2022

On February 09, 2022, the Insolvency and Bankruptcy Board of India (IBBI) has issued the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2022 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Key Points:

  • Regulation 18 which specify “Meetings of the committee” has been modified to include the following clause:

“A resolution professional may place a proposal received from members of the committee in a meeting, if he considers it necessary and shall place the proposal if the same is made by members of the committee representing at least thirty three per cent of the voting rights.”

  • Regulation 39A which specify “Preservation of records’ has been substituted with the following:
    1. The interim resolution professional or the resolution professional, as the case may be, shall preserve copies of all such records which are required to give a complete account of the corporate insolvency resolution process.
    2. The interim resolution professional or the resolution professional, as the case may be, shall preserve copies of records relating to or forming the basis of: –
      (a) his appointment as interim resolution professional or resolution professional, including the terms of appointment;

      (b) handing over / taking over of the assignment;

      (c) admission of corporate debtor into corporate insolvency resolution process;

      (d) public announcement;

      (e) the constitution of committee and meetings of the committee;

      (f) claims, verification of claims, and list of creditors;

      (g) engagement of professionals, registered valuers, and insolvency professional entity, including work done, reports etc., submitted by them;

      (h) information memorandum;

      (i) all filings with the Adjudicating Authority, Appellate Authority and their orders;

      (j) invitation, consideration and approval of the resolution plan;

      (k) statutory filings with Board and insolvency professional agencies;

      (l) correspondence during the corporate insolvency resolution process;

      (m) insolvency resolution process cost; and

      (n) preferential, undervalued, extortionate credit transactions or fraudulent or wrongful trading.
    3. The interim resolution professional or the resolution professional shall preserve:
      (a) electronic copy of all records (physical and electronic) for a minimum period of eight years; and

      (b) a physical copy of records for a minimum period of three years;
      from the date of completion of the corporate insolvency resolution process or the conclusion of any proceeding relating to the corporate insolvency resolution process, before the Board, the Adjudicating Authority, Appellate Authority or any Court, whichever is later.
    4. The interim resolution professional or the resolution professional shall preserve the records at a secure place and shall be obliged to produce records as may be required under the Code and the Regulations.

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