December 3, 2021
The IBBI has recently released the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2021 (‘Guidelines’).
These Guidelines shall be effective from January 1, 2022 and shall supersede the Guidelines [Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustee (Recommendation) Guidelines, 2021] issued on June 1, 2021.
Need for these Guidelines as cited by the IBBI:
Currently, under the IBC, the NCLT appoints Insolvency Professionals to act as the Interim Resolution Professional (‘IRP’), Resolution Professional (‘RP’), or the Liquidator for corporate debtors under the corporate insolvency resolution process (‘CIRP’), and to act as the RP or Bankruptcy Trustee (‘BT’) for individuals under individual insolvency resolution process.
In many cases under the CIRP, the party moving an application for the appointment of an IP, himself proposes a name. However, in those cases where no such proposal is there, the NCLT makes a reference to the IBBI to recommend an IP for appointment. The process of reference, recommendation and appointment entails some delay. Hence, to plug this gap, the IBBI has recommended the said Guidelines. Regarding individual insolvencies, these Guidelines are made pursuant to the Rules relating to individual insolvency resolution that empower the IBBI to share a Panel of IPs to be appointed as RPs and BTs.
An IP can be in the Panel if
During the validity of the Panel, the empanelled IPs shall not
The text of the Guidelines is available on the official website of the IBBI here.
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Abbreviations Used Code – Insolvency and Bankruptcy Code, 2016 CIRP – Corporate Insolvency Resolution Process AA – Adjudicating Authority (NCLT) CD – Corporate Debtor FC – Financial Creditor OC – Operational Creditor CoC – Committee of Creditors IRP – Interim Resolution Professional RP – Resolution Professional RA – Resolution Applicant FY – Financial Year – […]September 6, 2021