The Insolvency and Bankruptcy Board of India 30th September 2021 has published the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2021 to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
Through this amendment regulation 31A(1) which deals with the Stakeholders’ consultation committee has been substituted as follows:
The liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date, based on the list of stakeholders prepared under regulation 31, to advise him on matters relating to-
(a) Appointment of professionals and their remuneration under regulation 7;
(b) sale under regulation 32, including manner of sale, pre-bid qualifications, reserve price, amount of earnest money deposit, and marketing strategy:
Provided that the decision(s) taken by the liquidator prior to the constitution of consultation committee shall be placed before the consultation committee for information in its first meeting.
Further, as per the amendment under schedule 1 where an asset is to be sold through auction, a liquidator shall do so.
The liquidator may conduct multiple rounds of auctions to maximize the realization from the sale of the assets, and to promote the best interests of the creditors
Where the liquidator rejects the highest bid in an auction process, he shall intimate the reasons for such rejection to the highest bidder and mention it in the next progress report.
