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TMI BlogInsolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2022X X X X Extracts X X X X X X X X Extracts X X X X ..... ulation 2B, in sub-regulation (1), after the proviso, the following proviso shall be inserted, namely: - "Provided further that where the recommendation to explore proposal of compromise or arrangement has been made by the committee under regulation 39BA of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall file the proposal within thirty days of the order of liquidation." 3. In the principal regulations, in regulation 4, (i) after sub-regulation (1), the following sub-regulation shall be inserted, namely: - "(1A) Where no fee has been fixed under sub-regulation (1), the consultation committee may fix the fee of the liquidator in its first meeting." (ii) in sub-regulation (2), after the figure and brackets "(1)", the word, figure, letter and brackets " and (1A)" shall be inserted. 4. In the principal regulations, in regulation 12, in sub-regulation (2), after clause (b), the following shall be inserted, namely:- "(c) provide that where a stakeholder does not submit its claims during the liquidation process, the claims submitted by such a stakeholder, and duly collated by the interim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, extortionate credit transaction or fraudulent or wrongful trading, if any, shall be pursued after closure of liquidation proceedings and the manner in which the proceeds, if any, from these proceedings shall be distributed." (ii) after sub-regulation (1), the following shall be inserted, namely: - "(1A) The committee of creditors under section 21 shall function as the consultation committee with same voting rights till constitution of the consultation committee under sub-regulation (1)" (iii) for sub-regulation (2), the following shall be substituted, namely: - "(2) The voting share of a member of the consultation committee shall be in proportion to his admitted claim in the total admitted claim: Provided a secured creditor who has not relinquished his security interest under section 52 shall not be part of the consultation committee; Provided that the promoters, directors, partners or their representatives may attend the meeting of the consultation committee, but shall not have any right to vote. Provided further that a financial creditor or his representative, if he is a related party of the corporate debtor, shall not have right to vote." (iv) for sub-regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquidator within thirty days of the commencement of the said Regulations, shall reconstitute the consultation committee as required under the said Regulations and provisions provided under amended Regulation 31A shall come into effect only after such constitution." 10. In the principal regulations, in regulation 32A, for sub-regulation (4), the following shall be substituted, namely: - "(4) The liquidator may sell the assets of the corporate debtor under clause (e) of regulation 32 exclusively only at the first auction." 11. In the principal regulations, after regulation 32A, the following shall be inserted, namely:- "32B Conduct of meetings of the consultation committee. Save as otherwise provided under Chapter III of Part II of the Code and these Regulations, the provisions of regulations 18 to 26 of Chapter VI and Chapter VII of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall apply mutatis mutandis to meetings of the consultation committee under liquidation proceedings." 12. In the principal regulations, in regulation 34, (i) for sub-regulation (1), the following shall be substituted, namely:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nouncement; e) the constitution of consultation committee and minutes of consultation committee meetings during liquidation process; f) claims, verification of claims, and list of stakeholders; g) details of relinquishment or otherwise by secured creditors in liquidation process; h) engagement of professionals, registered valuers, etc. including work done, reports etc., submitted by them; i) Invitation, consideration and approval of plans / proposals / scheme received, in case of going concern sale in liquidation process or compromise or arrangement under section 230 of the Companies Act, 2013; j) all filings with the Adjudicating Authority, Appellate Authority, High Courts, Supreme Court, whichever applicable and their orders; k) statutory filings with Board and insolvency professional agencies; l) correspondence during the liquidation process; m) cost of liquidation process; n) all reports, registers, documents such as preliminary report, asset memorandum, progress reports, asset sale report, annual status report, final report prior to dissolution, various registers and books, etc. mentioned in regulations 5 and 6 of these Regulations. o) preferential, under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue a public notice of an auction for sale under regulation 32 within forty-five days from the liquidation commencement date unless the consultation committee advises to extend the timeline. (1B) The liquidator shall issue public notice for the next auction, in case of failure of the auction, within fifteen days from the last failed auction unless the consultation committee advises to deviate from the specified time period. (1C) Notwithstanding anything contained in this Schedule, the liquidator shall complete an auction process within thirty-five days from the issue of public notice for auction. (1D) The liquidator shall provide at least fourteen days from issue of public notice for submission of eligibility documents by prospective bidder. (1E) The liquidator shall provide to qualified bidder at least seven days, for inspection or due diligence of assets under auction, from the date of declaration of qualified bidder. (1F) A prospective bidder in an auction process shall deposit earnest money deposit at least up to two days before the date of auction." (ii) for the clause (7), the following shall be substituted, namely: - "(7) From a date to be notified through ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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