The Insolvency and Bankruptcy Board of India vide its notification dated 5th August 2020 has published the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020.
The Amendment is brought under regulation 4 which deals with liquidator’s fee. It is clarified that where a liquidator realizes any amount but does not distribute the same, he shall be entitled to a fee corresponding to the amount realized by him. Where a liquidator distributes any amount, which is not realized by him, he shall be entitled to a fee corresponding to the amount distributed by him.
The fee payable to the liquidator shall form part of the liquidation cost.
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