9911796707
TMI BlogInsolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... cess) Regulations, 2016, namely: - 1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024. (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 (Liquidation Process) Regulations, 2016 (hereinafter referred to as 'the principal regulations'), in regulation 2B, in sub-regulation (1), for the second proviso, the following provisos shall be substituted, namely:- "Provided further that the liquidator shall file the proposal of compromise or arrangement only in cases where such recommendation has been made by the committee under regulation 39BA of the Insolvency and B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ittee has extended the period between such meetings: Provided further that there shall be at least one meeting in each quarter." (iii) after sub-regulation (6), the following sub-regulations shall be inserted, namely:- "(6A) In all cases where the liquidator proposes to continue or initiate any legal proceeding, he shall, after presenting the economic rationale for the proposal, seek the advice of the consultation committee. (6B) In every meeting, the liquidator shall present to the consultation committee: (a) the actual liquidation cost along with reasons for exceeding the estimated cost, if any; (b) the consolidated status of all the legal proceedings; and (c) the progress made in the process." (iv) in sub-regulation (9), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "where the liquidator is of the opinion", the words, "where the liquidator after consultation with the consultation committee under regulation 31A, is of the opinion", shall be substituted. (ii) after sub-regulation (4), the following sub-regulations shall be inserted, namely:- "(5) Where valuation is undertaken as per sub-regulation (2), the liquidator shall facilitate a meeting wherein registered valuers shall explain the methodology being adopted to arrive at valuation to the consultation committee before finalisation of valuation reports. (6) The liquidator shall share the valuation reports with the members of the consultation committee after obtaining an undertaking that they shall maintain the confidentiality of such reports an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm-I for an order for withdrawal of the amount. (7E) If any person other than the stakeholder claims to be entitled to any amount deposited to the Corporate Liquidation Account, he shall submit evidence to satisfy the liquidator or the Board, as the case may be, that he is so entitled." (ii) in sub-regulation (8), for the expression "sub-regulation (7)", the expression "sub-regulation (7D)", shall be substituted. 9. In the principal regulations, after regulation 46, the following regulation shall be inserted, namely: - "46A. Exclusion of certain assets from the liquidation estate. For the purposes of clause (e) of sub-section (4) of section 36, wherever the corporate debtor has given possession to an allottee in a real estate proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is not received within the period provided under this clause." 11. In the principal regulations, in Schedule I, in para 2, after clause (3), the following clause shall be inserted, namely:- "(3A) The private sale shall be confirmed to the buyer after consultation with the consultation committee under regulation 33." 12. In the principal regulations, in Schedule II, for Form A, the following Form shall be substituted, namely:- "FORM A PROFORMA FOR REPORTING CONSULTATIONS WITH STAKEHOLDERS (Under Regulation 8 and Regulation 31A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016) Sl. No. Basic details of CD and meeting (a) Name and Registration no. of Liquidator (b) Name of corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Amount realised during the liquidation process: Sl. No. Realisations Amount (Rs.) 1. Opening balance as on liquidation commencement date (A) Realisations (B) 2. Auctions of assets 3. Private sales of assets 4. Assignment of not readily realisable assets 5. Distribution of unsold asset 6. Others (specify) Total (A+B) (ii) after para 4, the following paras shall be inserted, namely:- "4A. Details of realisation of security interest by secured creditor under section 52: Sl. No. Particulars Details 1. Number of secured creditors who did not relinquish security interest 2. Liquidation value of such security interest (Rs.) 3. Amount of admitted claim of secured creditors (Rs.) 4. Total realisation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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