IBBI amends voluntary liquidation norms; reduces timelines to expedite the liquidation process
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 7 April, 2022
Latest from Taxmann
1. Introduction
The IBBI vide. Notification no. F. No. IBBI/2022-23/GN/REG.081, Dated: 05.04.2022 has notified the IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2022. Amendments have been made with the objective to reduce the timeline for completion of the liquidation process. The amended regulations have reduced the liquidation timeliness drastically now the liquidator needs to complete the liquidation process and submit the Final Reports within 270 days/90 days earlier, it was 12 months. Further, as per the amended regulations, the liquidator shall distribute the proceeds from realization within 30 days from the receipt of the amount to the stakeholders, the earlier timeline was of 6 months.
The Key highlights of the amendments are discussed hereunder:
2. Key Highlights
1. Amendment in Regulation 10 (2) (r); Corporate Debtor is substituted by Corporate person
As per Regulation 10 (2) (r) the liquidator shall maintain such other books or registers as may be necessary to account for transactions entered into by him concerning the corporate person. The word corporate person is substituted with the word Corporate Debtor.
2. Amendment in Regulation 30 (2); Reduction in the timeline for preparation of the list of stakeholders in case where no claims are received.
As per the Regulation 30 (2) the liquidator shall prepare the list of stakeholders within 45 days from the last date for receipt of claims.
The amendment notification inserts a provision in regulation 30 (2), as per the provision the liquidator shall prepare the list of stakeholders within 15 days from the last date for receipt of claims where no claims from creditors have been received till the last date for receipt of claims.
Earlier there was no different timeline was prescribed in case where no claims from creditors.
3. Amendment in Regulation 35; Reduction in the timeline for distribution of the proceeds from realization
As per Regulation 35 the liquidator shall distribute the proceeds from realization within 6 months from the receipt of the amount to the stakeholders.
The amended regulation reduces the period for distribution of proceeds from realization to the stakeholders from the current 6 months to a period of thirty days from the receipt of the amount.
4. Amendment in Regulation 5(2); Enhancement in the timeline for intimation of appointment as liquidator to the Board.
As per Regulation 5(2) an insolvency professional shall, within seven days of his appointment, intimate the Board about his appointment as liquidator within 3 days of his appointment. The amended regulation enhanced the timeline for intimation from the current 3 days to a period of 7 days.
Click Here To Read The Complete Document
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
