In exercise of the powers conferred by section 196(1)(t) read with section 240 of the Insolvency and Bankruptcy Code, 2016, the Insolvency and Bankruptcy Board of India (IBBI) amended the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 and has notified Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2022 (hereinafter referred to as “Amended Regulations”) vide notification (reference – F. No. IBBI/2022-23/GN/REG.081) dated April 5, 2022.
The Highlights of the Amended Regulations are as below:
In Regulation 30(2) which specify “List of stakeholders” the following proviso has been inserted namely: –
“Provided that where no claim from creditors has been received till the last date for receipt of claims, the liquidator shall prepare the list of stakeholders within fifteen days from the last date for receipt of claims”
(It means that in cases where no claims are received from creditor, the period for the preparation of list of stakeholders by the liquidator will be reduced to 15 days from the proposed last date for the receipt of claims.)
In Regulation 35(1) which specify “Distribution” has been substituted namely: –
“The liquidator shall distribute the proceeds from realization within Thirty Days from the receipt of the amount to the stakeholders”
(Prior to the amendment it was Six months)
In Regulation 37 which specify “Completion of liquidation” the sub-regulation (1) has been substituted namely: –
“(1) The liquidator shall endeavour to complete the liquidation process of the corporate person and submit the Final Report under regulation 38 within: –
(a) two hundred and seventy days from the liquidation commencement date where the creditors have approved the resolution under clause (c) of sub-section (3) of section 59 or clause (c) of sub-regulation (1) of regulation 3, and
(b) ninety days from the liquidation commencement date in all other cases
In Regulation 38 which specify “Final report prior to dissolution” the sub-regulation (3) has been substituted namely: –
“The liquidator shall submit the Final Report and the compliance certificate in Form-H along with the application under sub-section (7) of section 59 to the Adjudicating Authority.”
The aforesaid notification and Form H – Compliance Certificate can be referred at – https://egazette.nic.in/WriteReadData/2022/234852.pdf
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Published on: April 12, 2022