Insolvency and Bankruptcy Commission rules changed

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The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016, the Ministry of Corporate Affairs said on Wednesday. The amendment requires business creditors to provide extracts from Forms GSTR-1, GSTR-3B and E-Way invoices, if applicable, along with the application filed under Section 9 of the Insolvency and Bankruptcy Act 2016.

These additional sets of documents can be used as evidence of corporate debtor transactions, debt and delinquency, facilitating the approval process. These documents are also filed as part of the claims filed with the Settlement Professional to assist in the preparation of claims. In addition, creditors making applications under Section 7 or 9 of the code must provide their PAN and email ID details to ensure smooth correspondence, the Department of Corporate Affairs said in a statement. The Insolvency and Bankruptcy Board of India issued the Notice on June 14, 2022. The amended regulations came into effect on June 15.

In order to improve the availability of information, the amendment requires the corporate obligor, its promoters or any other person associated with the corporate obligor’s management to provide the information in the format and timing requested by the resolution professional. The amendment requires creditors to share information about the corporate debtor’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 information memorandum and relevant extracts from the transaction or forensic audit reports to assist the settlement expert in preparing the dispute request.

The amendment also addresses the handling of appeals filed with the Adjudicing Authority after the completion of the corporate insolvency proceedings (CIRP). It provides that the resolution plan provides for how such requests are to be followed up once the resolution plan has been approved and how any proceeds from such proceedings are to be distributed. The amendment includes a definition of significant valuation differences during CIRP and allows the creditors’ committee to submit a request to the resolution expert to appoint a third valuer. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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