IBBI to prepare a Common Panel of IPs for appointment as IRP, Liquidator, RP and Bankruptcy Trustee
- Blog|News|Insolvency and Bankruptcy Code|
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- Last Updated on 14 December, 2022
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IBBI has laid down the ‘Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2022’. The guidelines prescribe for preparation of a common Panel of IPs for appointment as IRP, Liquidator, RP and Bankruptcy Trustees.
The IBBI is required under the IBC, 2016 to recommend name of an Insolvency Professional (IP) for appointment as Interim Resolution Professional (IRP) or Liquidator as under Section 16(3)(a) and Section 34(4).
Currently, the IBBI does not have information about the volume, nature and complexity of an insolvency or bankruptcy process. In order to counter this problem, the IBBI decided to prepare a common Panel of IPs for appointment as IRP, Liquidator, RP and Bankruptcy Trustees and share the same with the AA. The Panel will have validity of 6 months and a new Panel will replace the earlier Panel every 6 months.
As per the guidelines, the NCLT may pick up any name from the Panel for appointment of IRP, Liquidator, RP or BT, for a CIRP, Liquidation Process, Insolvency Resolution or Bankruptcy Process relating to a corporate debtors and personal guarantors to corporate debtors, as the case may be.
The guidelines prescribe the following criteria for an IP to be eligible to be in the Panel of IPs, if –
(a) there is no disciplinary proceeding, whether initiated by the Board or the IPA of which he is a member, pending against him;
(b) he has not been convicted at any time in the last three years by a court of competent jurisdiction;
(c) he expresses his interest to be included in the Panel for the relevant period;
(d) he undertakes to discharge the responsibility as IRP, Liquidator, RP or BT, as he may be appointed by the AA;
(e) he holds an Authorisation for Assignment (AFA), which is valid till the validity of Panel. For example, the IP included in the Panel for appointments during January – June 30, 2023 should have AFA valid up to June 30, 2023.
Guidelines also prescribe the scoring criteria. Accordingly, the eligible IPs will be included in the Panel in the order of the volume of completed assignments. Where two or more IPs get the same score, they will be placed in the Panel in the order of date of their registration with the Board. The IP registered earlier will be placed above the IP registered later. Various other criteria have been introduced in the guidelines.
The Guidelines shall come into effect for appointments as IRP, Liquidator, RP and BT from January 1, 2023
Click Here To Read The Full Guidelines
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