The Insolvency and Bankruptcy Board of India (IBBI) on December 12, 2022, notifies the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals, and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2022. These Guidelines shall govern appointments as IRP, Liquidator, RP, and BT from January 1, 2023. The following guidelines are provided:
- The Insolvency and Bankruptcy Board of India (Board) is required under the Insolvency and Bankruptcy Code, 2016 (Code) to recommend the name of an Insolvency Professional (IP) for appointment as Interim Resolution Professional (IRP) or Liquidator.
- The Board has been making available Panels of IPs to the AA for appointment as IRP or Liquidator, as the case may be.
- The Board is also required under the Code to recommend the name of an IP for an appointment as a resolution professional (RP) or bankruptcy trustee (BT). Guidelines 5. At the time of reference/ directions received from the AA, the Board does not have information about the volume, nature, and complexity of an insolvency or bankruptcy process and the resources available at the disposal of an IP. In such a situation, the Board is unlikely to add much value by recommending an IP for the process.
- Given that every IP is equally qualified to be appointed as the IRP, Liquidator, RP, or BT of any corporate or individual insolvency resolution, liquidation, or bankruptcy process, as the case may be, if otherwise not disqualified, and in the interest of avoiding administrative delays, the Board considers necessary to have these guidelines to prepare a Panel of IPs for the purpose of section 16(4), 34(6), 97(4), 98(3), 125(4), 146(3) and 147(3).
- The Form A Expression of Interest to act as an Irp, Liquidator, Rp, and Bt in any process relating to any corporate or individual debtor is also specified.
