IBBI Update - IBBI (Liquidation Process) (Amendment) Regulations, 2024

Regulation Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024. Comments Reg 2B Compromise or arrangement. Second Proviso Provided further that where the recommendation to explore proposal of compromise or arrangement has been made by the committee under regulation 39BA of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall file the proposal within thirty days of the order of liquidation Provided further that the liquidator shall file the proposal of compromise or arrangement only in cases where such recommendation has been made by the committee under regulation 39BA of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016: Provided further that the liquidator shall not file such proposal after expiry of thirty days from the liquidation commencement date.” The liquidator shall file the proposal of compromise or arrangement only in cases where the Committee of Creditors made such a recommendation during the CIRP and such proposal shall not be filed after the expiry of thirty days from the liquidation commencement date. Reg 14. Early dissolution. He may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution. He shall consult the consultation committee and if it advises for early dissolution, he may apply, along with a detailed report incorporating the views of the consultation committee, to the Adjudicating Authority Prior to applying for early dissolution, the liquidator must seek the SCC's views and recommendations, providing a detailed report in the application to the Adjudicating Authority (AA) Reg 31A. Stakeholders’ consultation committee. in sub-regulation (1) in sub-regulation (6)new proviso is inserted Sub- regulation 6A is inserted Sub- regulation 6B is inserted In sub-regulation (9) Explanation is inserted after clause (e), the following clauses shall be inserted, namely:- “(f) review of marketing strategy in case of failure of sale of corporate debtor as a going concern; (g) continuation or institution of any suits or legal proceedings by or against the corporate debtor; (h) extension of payment of balance sale consideration as provided in clause (12) of Para 1 of Schedule I, beyond ninety d