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Amended Insolvency and Bankruptcy Commission Regulations

The Indian Insolvency and Bankruptcy Board has notified the Indian Insolvency and Bankruptcy Board (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations 2016, announced on Wednesday the Department of Corporate Affairs. The amendment provides that operational creditors provide excerpts from Form GSTR-1, Form GSTR-3B and electronic freight bills, if applicable, with the application filed under Article 9 of the Insolvency Code and bankruptcy, 2016.

These additional sets of documents can be used as proof of debtor business transactions, debt and default, thus facilitating the admissions process. These documents will also be submitted as part of claims submitted to the resolution professional to assist in the collation of claims. In addition, creditors filing claims under Section 7 or 9 of the Code are required to provide details of their PAN and email address to ensure smooth correspondence, the Department of Corporate Affairs said in a statement. The Indian Insolvency and Bankruptcy Board issued the notification on June 14, 2022. The amended regulations came into force on June 15.

In order to improve the availability of information, the amendment requires the debtor company, its promoters or any other person associated with the management of the debtor company to provide the information in the format and within the time limits desired by the professional. of the resolution. The amendment requires creditors to share information regarding the debtor company’s assets and liabilities, financial statements and other relevant financial information from their records and available reports to assist the resolution professional in preparing the briefing note and relevant excerpts. from transaction or forensic audit reports to help the resolution professional in the preparation of the cancellation request.

The amendment also addresses the issue of the treatment of cancellation requests filed with the procuring authority after the closure of the business insolvency resolution process (CIRP). It provides that the resolution plan must provide for the manner in which these claims will be pursued after the approval of the resolution plan and the manner in which the proceeds, if any, of these proceedings will be distributed. The amendment includes a definition of material valuation differences during the CIRP and allows the creditors’ committee to request the resolution professional to appoint a third valuator. (ANI)

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