IBBI Notifies The Amended Insolvency And Bankruptcy Board Of India (Voluntary Liquidation Process) Regulations, 2017

The Insolvency and Bankruptcy Board of India ("IBBI") has issued a Press Release on 08.04.2022 notifying the public that amendments have been made to Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 ("Voluntary Liquidation Regulations"). These amendments were initially notified by the IBBI on its website on 05.04.2022 and it became Effective From The Same Date. Reason For The Amendment The Voluntary Liquidation Regulations encompasses the process of voluntary liquidation to be followed by a solvent corporate person. It was realized that the process of liquidation was being substantially delayed despite the fact that liquidation does not involve claim of creditors; has fewer assets (if any) to be realized; and fewer litigations (if any) to be concluded. Therefore, in order to curtail such delays and ensure faster exit for firms, amendments have been made to modify the timelines for activities undertaken during the voluntary liquidation process. Amendments The following amendments have been incorporated: The Liquidator shall prepare the list of stakeholders within 15 days (against the previously stipulated 45 days) from the last date for receipt of claims, where no claim from creditors has been received till the last date for receipt of claims.The Liquidator shall distribute the proceeds from realization within 30 days (against the previously stipulated 6 months) from the receipt of the amount to the stakeholders.The Liquidator shall endeavour to complete the liquidation process of the corporate person within 270 days from the liquidation commencement date, where the creditors have approved the resolution under Section 59(3)(c) or Regulation 3(1)(c), and 90 days from the liquidation commencement date in all other cases (against the previously stipulated 12 months in all situations).In order to provide summary of actions taken by the Liquidator during the voluntary liquidation process, the amended Voluntary Liquidation Regulations specify a compliance certificate which is required to be submitted along with application under Section 59(7) to the Adjudicating Authority, by the Liquidator. It shall facilitate the Adjudicating Authority to adjudicate dissolution applications expeditiously. Click Here To Read/Download Press Release

IBBI Notifies The Amended Insolvency And Bankruptcy Board Of India (Voluntary Liquidation Process) Regulations, 2017

Pallavi Mishra

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