The Insolvency and Bankruptcy Board of India on 16th September 2022, published the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2022 to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
The amendment is brought under regulation 2B which deals with Compromise or arrangement in which the following proviso has been notified:
Where a compromise or arrangement is, it shall be completed within ninety days of the order of liquidation. Provided that a person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor, shall not be a party in any manner to such compromise or arrangement.
“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.
Further a new regulation 12A dealing with Process email ID has been notified as follows:
The liquidator shall operate the process email account handed over to him by the resolution professional in accordance with regulation 4C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and in the event of his replacement, the credentials of such email ID shall be handed over to the new liquidator.
The liquidator under regulation45A shall preserve copies of records relating to or forming the basis of:-
- his appointment as liquidator, including the terms of appointment;
- handing over and taking over of the assignment;
- admission of corporate debtor into liquidation;
- public announcement;
- the constitution of consultation committee and minutes of consultation committee meetings during liquidation process;
- claims, verification of claims, and list of stakeholders;
- details of relinquishment or otherwise by secured creditors in liquidation process;
- engagement of professionals, registered valuers, etc. including work done, reports etc., submitted by them.
- statutory filings with Board and insolvency professional agencies;
- correspondence during the liquidation process;
- cost of liquidation process.
The liquidator shall preserve, an electronic copy of all records (physical and electronic) for a minimum period of eight years and a physical copy of records for a minimum period of three years from the date of dissolution of the corporate debtor or closure of the liquidation process or the conclusion of any proceeding relating to the liquidation process, before the Board, the Adjudicating Authority, Appellate Authority or any Court, whichever is later.
