The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2020 on 6th January 2020.

The amendment clarifies that a person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor, shall not be a party in any manner to a compromise or arrangement of the corporate debtor under section 230 of the Companies Act, 2013. It also clarifies that a secured creditor cannot sell or transfer an asset, which is subject to security interest, to any person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor.

The amendment provides that a secured creditor, who proceeds to realise its security interest, shall contribute its share of the insolvency resolution process cost, liquidation process cost and workmen’s dues, within 90 days of the liquidation commencement date. It shall also pay excess of realised value of the asset, which is subject to security interest, over the amount of its claims admitted, within 180 days of the liquidation commencement date. Where the secured creditor fails to pay such amounts to the Liquidator within 90 days or 180 days, as the case may be, the asset shall become part of Liquidation Estate.

The amendment provides that a Liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Liquidation Account before he submits an application for dissolution of the corporate debtor. It also provides a process for a stakeholder to seek withdrawal from the Corporate Liquidation Account.

The amended regulations are effective from 6th January 2020. These are available at www.mca.gov.in and www.ibbi.gov.in.

Cabinet approves Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 (code), through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019.  The amendments aim to remove certain difficulties being faced during insolvency resolution process to realise the objects of the code and to further ease doing of business.

Details of the Proposal

The Amendment Bill seeks to amend sections 5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240 and insert new section 32A in the Insolvency and Bankruptcy Code, 2016 (Code).

Impact

1. Amendments to the Code to remove bottlenecks, streamline the CIRP and protection of last mile funding will boost investment in financially distressed sectors.
2. Additional thresholds introduced for Financial Creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP).
3. Ensuring that the substratum of the business of corporate debtor is not lost, and it can continue as a going concern by clarifying that the licenses, permits, concessions, clearances etc. cannot be terminated or suspended or not renewed during the moratorium period.
4. Ring-fencing corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management/promoters.

by FCA, FCMA, LLM (India), LLM (USA) Ashish Makhija (Author)

This book consolidates the judgments and orders passed by the Supreme Court, high Courts across India and the Tribunal including Appellate Tribunal up to 31st December, 2018 in the form of a Digest based on qualitative research. The cases have been presented in a comprehensible manner under each provision giving the essence of the judgment in a concise manner. The Insolvency practitioners, judicial officers, regulators and other stakeholders will find the IBC Digest extremely useful in their endeavours.

Key features covers

• gist of more than 600 judgements and orders;
• cover judgements and orders up to 31st December 2018 for easy reference,
• table of cases arranged: – section-wise; – alphabet-wise;
• conclusive heading/topic allocated to all cases digested;
• includes updated text of Insolvency and Bankruptcy Code, 2016 with footnotes.

Price Rs 1160 Click here to buy online

• Paperback: 760 pages
• Publisher: Bloomsbury; First edition (31 May 2019)

Other New GST and Tax Books

Publication on Judicial Pronouncements under Insolvency and Bankruptcy Code, 2016 Series 1 , by Insolvency and Bankruptcy Laws Group, CLCGC, ICAI – Download : Click here

No. IBBI/PR/2018/23
31 st July, 2018

Limited Insolvency Examination, 1st November, 2018
The Board hereby publishes the syllabus, format etc. of the Limited Insolvency Examination (Examination) under regulation 3(3) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 for the examination to be conducted from 1 st November, 2018.

I. Syllabus for Examination
The syllabus for the Examination is as under:

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