The Insolvency and bankruptcy board of India vide its notification dated 13th November 2020 has published the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020 to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
The Amendment brings in a new regulation 30A which deals with the transfer of debt due to creditors in which a creditor may assign or transfer the debt due to him or it to any other person during the liquidation process in accordance with the laws for the time being in force dealing with such assignment or transfer and the liquidator shall modify the list of stakeholders in accordance with the provisions of regulation 31.
Further under regulation 37A, the liquidator may assign or transfer a not readily realisable asset through a transparent process, in consultation with the stakeholders’ consultation committee in accordance with regulation 31A, for a consideration to any person, who is eligible to submit a resolution plan for insolvency resolution of the corporate debtor.
