The Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020.
The Amendment is brought under rule 4 which deals with the application by financial creditor in which financial creditor, either by itself or jointly, shall make an application for initiating the corporate insolvency resolution process against a corporate debtor.
IBBI temporarily suspends the initiation of corporate insolvency resolution process.
IBBI has temporarily suspended the initiation of the corporate insolvency resolution process under the IBC, for a period not exceeding one year from 25th March, to provide relief to companies affected by COVID-19 to recover from the financial stress.
The IBBI has published the provisional list of Insolvency Professionals
The entities undergoing insolvency procedures can appointment Administrators from the list of insolvency professionals published by IBBI for a period from 1st October 2020 to 31st March 2021.
The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 was promulgated by the President on the 5th day of June, 2020 to temporarily suspend initiation of corporate insolvency resolution process
under the Code, initially for such period not exceeding one
year from 25th March, 2020, to provide relief to companies affected by COVID-19 to recover
from the financial stress without facing immediate threat of being pushed to insolvency
proceedings. The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 which seeks to replace the Ordinance is introduced before Rajya Sabha.
The Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020.
The Guidelines provide guidance to the registered valuers in the use of Caveats, Limitations, and Disclaimers in the interest of credibility of the valuation reports and they provide an illustrative list of the Caveats, Limitations, and Disclaimers which shall not be used in a valuation report.
Government of Delhi amends the special procedure previously notified for corporate debtors
The class of persons that were previously notified will not include corporate debtors who have furnished statements and returns under the Delhi Goods and Service Act, 2017 for the tax period before the appointment of the IRPs/ RPs. Also, the time period for registration of such person is now stipulated as with 30 days of the appointment of IPRs/ RPs or by 30th June 2020, whichever is later. Prior to this, the specification of the date of 30th June was not provided.
Government of Delhi notifies special procedure for corporate debtors
These corporate debtors are having their affairs managed by Interim Resolution Professionals (IRPs) or Resolution Professionals (RPs) and shall be regarded as a special class of persons. These special class of persons will be treated as distinct person of the corporate debtor. They are required to make new registrations in each State/ UT where the corporate debtor was previously registered. After registration, such persons shall file the first return for the period from the date they become liable to register to the date on which registration is granted. Such newly registered persons will be eligible to avail input tax credit on invoices covering the supplies of goods and/or services received after the appointment of the IRPs/ RPs. Additionally, registered persons who receive supplies from the newly registered persons will be eligible to avail input tax credit on invoices bearing the GSTIN of the erstwhile registered persons.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020
The Amendment is brought under Regulation 16A where the authorized representative shall circulate the agenda to creditors in a class, and may seek their preliminary views on any item in the agenda to enable him to effectively participate in the meeting of the committee.
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.
Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020
The corporate person shall appoint an insolvency professional as liquidator and can replace him wherever required through a resolution. The insolvency professional shall, within three days of his appointment as liquidator, intimate the Board about such appointment.
