IBBI Amends ‘Model Bye Laws of Insolvency Professional Agencies Regulations’ w.e.f. 18th September 2023

The Insolvency and Bankruptcy Board of India (“IBBI”) vide its notification dated 18.09.2023, has notified amendments to the Insolvency and Bankruptcy Board of India (Model ByeLaws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. The amendments are effective from 18.09.2023. The key changes are as under: An individual or an Insolvency Professional Entity (IPE) may apply for enrolment as a professional member by submitting an application in Part – I of Form A and Part – I of Form AA respectively. “(1) An individual or an insolvency professional entity may apply for enrolment as a professional member by submitting an application in Part – I of Form A and Part – I of Form AA, respectively, of the Second Schedule to Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, in such manner and with such fees as may be specified by the Agency.” The acceptance of the application shall be communicated to the applicant within 60 days of receipt of application, excluding the time given to Applicant for removing the deficiencies, presenting additional documents or clarification. Accordingly, in Para VI Clause 10(7), after the words “to these bye laws” the words “within sixty days of receipt of the application, excluding the time given for the purposes stated in clause (6)” shall be inserted.Additional grounds have been added in Para XI Clause 29 with regards to circumstances under which the Agency may refuse to accept the surrender of membership by any professional member. The amended version of Clause 29 is as under: “29. The Agency may refuse to accept the surrender of membership by any professional member if– (1) there is grievance or disciplinary proceeding pending against it before the Agency or the Board; (2) it does not comply with requirements, as on the date of application for surrender of professional membership with respect to- (a) payment of fee to the Board; (b) a disciplinary order issued by the Agency of the Board; (c) filings and disclosures to the Agency and the Board; (d) the arrangements made for the maintenance, preservation and transfer of records and other documents required to be maintained under the relevant regulations; and (e) any other requirements, as stipulated under the Code, rules made thereunder, regulations, circulars, directions, or guidelines issued by the Agency and the Board, from time to time. (3) it has been appointed as an interim resolution professional, resolution professional, liquidator or authorised representative or bankruptcy trustee for a process under the Code, or the appointment of another insolvency professional may be detrimental to such process.” In Clause 30, which contains circumstances under which a professional member shall be expelled by the Agency, a new ground has been added which states that while expelling the professional member, the Agency may take into account the factors provided in Clause 29. The amended version of Clause 30 is as under: “30. (1) A professional member shall be expelled by the Agency – (a) if it becomes ineligible to be enrolled under clause 9; (b) on expiry of thirty days from the order of the Disciplinary Committee, unless set aside or stayed by the Appellate Panel; (c) upon non-payment of professional membership fee despite at least two notices served in writing; (d) upon the cancellation of its certificate of registration by the Board; (e) upon the order of any court of law. (2) While expelling the professional member, the Agency may take into account the factors provided in clause 29.” Reference No. IBBI/2023-24/GN/REG105. Click Here To Read/Download Notification

IBBI Amends ‘Model Bye Laws of Insolvency Professional Agencies Regulations’ w.e.f. 18th September 2023

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IBBI Amends ‘Model Bye Laws of Insolvency Professional Agencies Regulations’ w.e.f. 18th September 2023

Pallavi Mishra

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