The Insolvency and Bankruptcy Board of India vide its notification dated 6th January 2021 has directed the insolvency professionals to preserve copies of records generated in electronic form during a corporate insolvency resolution process.
As per Regulation 39A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 which mandates the interim resolution professional to preserve a physical as well as an electronic copy of the records relating to the corporate insolvency resolution process (CIRP) of the corporate debtor (CD), as per the record retention schedule as communicated by the Board in consultation with IPAs
Therefore the insolvency professionals shall preserve an electronic copy of all records (physical and electronic) for a minimum period of eight years, and a physical copy of physical records for a minimum period of three years from the date of completion of the CIRP or the conclusion of any proceeding relating to the CIRP, before the Board, the Adjudicating Authority (AA), Appellate Authority or any Court, whichever is later.
An IP shall preserve the records at a secure place and ensure that unauthorized persons do not have access to the same.
