Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 - IBBI/2019-20/GN/REG054 - Insolvency and Bankruptcy

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, 15th January, 2020 Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 No. IBBI/2019-20/GN/REG054 .- In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 , namely: - 1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (hereinafter referred to as the principal regulations), in regulation 2 , in sub-regulation (1), after clause (b), the following clause shall be inserted, namely: - (ba) Corporate Voluntary Liquidation Account means the Corporate Voluntary Liquidation Account operated and maintained by the Board under regulation 39; . 3. In the principal regulations , in regulation 10 , in sub-regulation (2), for clause (q), the following clause shall be substituted, namely:- (q) Register of unclaimed dividends and undistributed proceeds; and 4. In the principal regulations , for regulation 39 , the following regulation shall be substituted, namely: - 39. Corporate Voluntary Liquidation Account. (1) The Board shall operate and maintain an Account to be called the Corporate Voluntary Liquidation Account in the Public Accounts of India: Provided that until the Corporate Voluntary Liquidation Account is operated as part of the Public Accounts of India, the Board shall open a separate bank account with a Scheduled bank for the purposes of this regulation. (2) A liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon till the date of deposit, into the Corporate Voluntary Liquidation Account before he submits an application under sub-section (7) of section 59. (3) A liquidator, who holds any amount of unclaimed dividends or undistributed proceeds in a liquidation process on the date of commencement of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020, shall deposit the same within fifteen days of the date of such commencement, along with any income earned thereon till the date of deposit. (4) A liquidator, who fails to deposit any amount into the Corporate Voluntary Liquidation Account under this regulation, shall deposit the same along with interest thereon at the rate of twelve percent per annum from the due date of deposit till the date of deposit. (5) A liquidator shall submit to the authority with which the corporate person is registered and the Board, the evidence of deposit of the amount into the Corporate Voluntary Liquidation Account under this regulation, and a statement in Form-G setting forth the nature of the amount deposited into the Corporate Voluntary Liquidation Account, and the names and last known addresses of the stakeholders entitled to receive the unclaimed dividends or undistributed proceeds. (6) The liquidator shall be entitled to a receipt from the Board for any amount deposited into the Corporate Voluntary Liquidation Account under this regulation. (7) A stakeholder, who claims to be entitled to any amount deposited into the Corporate Voluntary Liquidation Account, may apply to the Board in Form-H for an order for withdrawal of the amount: Provided that if any other person other than the stakeholder claims to be entitled to any amount deposited to the Corporate Voluntary Liquidation Account, he shall submit evidence to satisfy the Board that he is so entitled. (8) The Board may, if satisfied that the stakeholder or any other person referred to under sub-regulation (7) is entitled to withdrawal of any amount from the Corporate Voluntary Liquidation Account, make an order for the same in favour of that stakeholder or that other person. (9) The Board shall maintain a corporate person-wise ledger of the amount deposited into and the amount withdrawn from the Corporate Voluntary Liquidation Account under this regulation. (10) The Board shall nominate an officer of the level of Executive Director of the Board as the custodian of the Corporate Voluntary Liquidation Account and no proceeds shall be withdrawn without his approval. (11) The Board shall maintain proper accounts of the Corporate Voluntary Liquidation Account and get the same audited annually. (12) The audit report along with the statement of accounts of the Corporate Voluntary Liquidation Account referred to in sub-regulation (11) shall be placed before the Governing Board and shall be forwarded to the Central Government. (13) Any amount deposited into the Corporate Voluntary Liquidation Account in pursuance of this regulation, which remains unclaimed or undistributed for a period of fifteen years from the date of order of dissolution of the corporate person and any amount of income or interest received or earned in the Corporate Voluntary Liquidation Account shall be transferred to the Consolidated Fund of India. . 5. In the principal regulations , in Schedule I, after Form F , the following forms shall be inserted, namely: - FORM-G Deposit of Unclaimed Dividends and/or Undistributed Proceeds [Under Regulation 39(5) of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017] A. Details of Voluntary Liquidation Process Sl. No. Description Particulars (1) (2) (3) 1 Name of the Corporate Person 2 Identification Number of Corporate Person (CIN/LLPIN) 3 Voluntary Liquidation Commencement Date 4 Date of Deposit into the Corporate Voluntary Liquidation Account 5 Amount deposited into the Corporate Voluntary Liquidation Account (Rs.) 6 Bank Account from which the amount is transferred to Corporate Voluntary Liquidation Account a. Account No: b. Name of Bank: c. IFSC: d. MICR: e. Address of Branch of the Bank: 7 Details of the Amount (Rs.) deposited into Corporate Voluntary Liquidation Account a. Unclaimed dividends b. Undistributed proceeds c. Income earned till the due date of deposit d. Interest at the rate of twelve per cent on the amount retained beyond due date (Please show computation of interest amount) Total B. Details of Stakeholders entitled to Unclaimed Dividends or Undistributed Proceeds Sl. No. Name of stakeholder entitled to receive unclaimed dividends or undistributed proceeds Address, phone number and email address of the stakeholder Identification Number of the stakeholder (PAN, CIN/LLPIN/DIN, Aadhaar No.) (Please attach Identification proof.) Amount due to the stakeholder (Rs.) Nature of Amount due Remarks (1) (2) (3) (4) (5) (6) (7) 1 2 3 C. Details of Deposit made into the Corporate Voluntary Liquidation Account I ( Name of Liquidator ) have deposited Rs (Rupees .only) into the Corporate Voluntary Liquidation Account on . vide acknowledgment no.. dated I ( Name of Liquidator) hereby certify that the details provided in this Form are true and correct to the best of my knowledge and belief, and nothing material has been concealed. (Signature) Name of the Liquidator IP Registration No: Address as registered with the Board: Email id as registered with the Board: Date: .. Place: .. FORM-H Withdrawal from Corporate Voluntary Liquidation Account [ Under Regulation 39(7) of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 ] Sl. No. Description Particulars (1) (2) (3) 1 Name of the Corporate Person 2 Identification Number of Corporate Person (CIN/LLPIN) 3 Voluntary Liquidation Commencement Date 4 Date of Dissolution Order 5 Date of Deposit into the Corporate Voluntary Liquidation Account 6 Name of the Stakeholder seeking withdrawal 7 Identification Number of the Stakeholder a. PAN b. CIN/LLPIN/DIN c. Aadhaar No. 8 Address and Email Address of Stakeholder 9 Amount of Claim of the Stakeholder, admitted by the Liquidator 10 Amount of unclaimed dividends / undistributed proceeds deposited by the Liquidator in the Corporate Voluntary Liquidation Account against the stakeholder 11 Amount of unclaimed dividends / undistributed proceeds the Stakeholder seeks to withdraw from the Corporate Voluntary Liquidation Account 12 Bank Account to which the amount is to be transferred from the Corporate Voluntary Liquidation Account, if withdrawal is approved (a) Account No.: (b) Name of Bank: (c) IFSC: (d) MICR: (e) Address of Branch of the Bank: 13 Reasons for not taking dividend or proceeds during the Voluntary Liquidation Process 14 Any legal disability in applying for withdrawal? (Yes / No), If yes, please provide details DECLARATION I, [Name of stakeholder], currently residing at [insert address], hereby declare and state as follows: 1. I am entitled to receive a sum of Rs . (Rupees only) from the Corporate Voluntary Liquidation Account, as presented above. 2. In respect of the said sum or any part thereof, neither I nor any person, by my order, to my knowledge or belief, for my use, has received any manner of satisfaction or security whatsoever, save and except the following: ............... 3. I undertake to refund the entire amount with interest as decided by the Board, in case the Board finds that I am not entitled to this amount. 4. I authorise the Board to initiate appropriate legal action against me if my claim is found false at any time. Date: Place: (Signature of the Stakeholder) VERIFICATION I, [Name] the stakeholder hereinabove, do hereby verify that the contents of this Form are true and correct to my knowledge and belief and no material fact has been concealed therefrom. Verified at on this day of ., 20 (Signature of the Stakeholder) [ Note: In the case of a company or limited liability partnership, the declaration and verification shall be made by the director/manager/secretary/ designated partner and in the case of other entities, an officer authorised for the purpose by the entity] . 6. In the principal regulations , in Schedule II, - (a) in DISTRIBUTIONS REGISTER , under Instructions in serial number 4, for the words Public Account of India , the words Corporate Voluntary Liquidation Account shall be substituted.; (b) in REGISTER OF UNCLAIMED DIVIDENDS AND UNDISTRIBUTED ASSETS DEPOSITED , for the word ASSETS , the word PROCEEDS shall be substituted. (Dr. Navrang Saini) Whole Time Member Insolvency and Bankruptcy Board of India [ADVT ] Note: The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 were published vide notification No. IBBI/2016-17/GN/REG010 dated 31st March, 2017 in the Gazette of India, Extraordinary, Part III, Section 4, No. 130 on 31st March, 2017 and were subsequently amended by the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2019 published vide notification No. IBBI/2019-20/GN/REG039 dated 15th January, 2019 in the Gazette of India, Extraordinary, Part III, Section 4, No. 12 on 15th January, 2019.