## Report on the Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Second Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Voluntary Liquidation Process Second Amendment Regulations, 2022, based solely on the official gazette notification. This amendment to the 2017 regulations focuses on strengthening the preservation of records during the voluntary liquidation process. Key findings highlight new responsibilities for liquidators regarding record preservation, encompassing both electronic and physical copies, along with detailed procedures for handover and reporting.
**2. Introduction:**
This report aims to provide an informative overview of the Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Second Amendment Regulations, 2022. The analysis is based exclusively on the text provided in the official gazette notification and aims to clarify the changes introduced by this amendment.
**3. Policy Overview:**
* **Amendment:** This is an amendment to the Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Regulations, 2017.
* **Core Objective(s):** Based on the provided text, the core objective of this amendment is to ensure the comprehensive and secure preservation of records related to the voluntary liquidation process.
**4. Background and Rationale:**
The amendment likely addresses concerns regarding the availability and integrity of records following the dissolution of a corporate person under the voluntary liquidation process. The amendment appears to provide stronger guidance and mandates to ensure that liquidators properly handle the preservation of records related to the liquidation process. By implementing stricter guidelines on record preservation, the amendment aims to enhance transparency, accountability, and facilitate potential future reviews or investigations.
**5. Key Provisions / Changes:**
This amendment introduces the following key changes to the Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Regulations, 2017:
* **Amendment to Regulation 3:** A new sub-regulation (5) is added after sub-regulation (4). It mandates that the declaration made by the corporate person regarding voluntary liquidation must include a provision for the preservation of records after its dissolution. *Effect:* This change ensures that the issue of record preservation is considered from the outset of the liquidation process, placing initial responsibility on the corporate person.
* **Substitution of Regulation 41:** Regulation 41, concerning preservation of records, is entirely replaced with a new regulation. The new regulation 41 outlines detailed requirements for record preservation, covering various aspects of the liquidation process. *Effect:* This substitution provides a comprehensive framework for record preservation, addressing the type of records to be preserved, the duration of preservation, and the responsibilities of the liquidator.
* The liquidator must preserve copies of all records that give a complete account of the voluntary liquidation process.
* Specific categories of records to be preserved are listed (appointment, handover, public announcement, claims, engagements of professionals, filings, correspondence, costs, reports etc.).
* The liquidator must preserve electronic copies of all records (physical and electronic) for a minimum of eight years and physical copies for a minimum of three years from the date of dissolution, or any related court order.
* The outgoing liquidator must handover the records to a new liquidator if there is a change.
* The liquidator must keep the records in a secure location and produce them when required.
* The liquidator must provide details of record preservation to the Adjudicating Authority along with the application for dissolution.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by these amendments include:
* **Liquidators:** They are responsible for implementing the new regulations related to record preservation.
* **Corporate Persons undergoing Voluntary Liquidation:** They are now required to make provisions for the preservation of records post-dissolution.
* **The Insolvency and Bankruptcy Board of India (IBBI):** The regulatory body responsible for overseeing the implementation and compliance of the regulations.
* **Adjudicating Authority, Appellate Authority, High Courts, Supreme Court:** These bodies may require access to the preserved records for review or dispute resolution.
* **Insolvency Professional Agencies:** These agencies will be impacted through the requirement for their members (liquidators) to adhere to the regulation.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Insolvency and Bankruptcy Board of India (IBBI) is responsible for overseeing the implementation. Liquidators are directly responsible for adhering to the requirements. The Adjudicating Authority will likely play a role in ensuring compliance during the dissolution application process.
* **Timelines and Procedures:** The amendment comes into force on the date of its publication in the Official Gazette (September 16, 2022). Liquidators must now preserve records for the specified durations (8 years for electronic, 3 years for physical) from the date of dissolution. The liquidator must provide details of the method of preservation to the Adjudicating Authority with the application filed under subsection 7 of section 59.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these amendments are likely to include:
* **Improved Record Keeping:** The detailed requirements for record preservation will likely lead to more systematic and comprehensive record-keeping practices by liquidators.
* **Enhanced Transparency and Accountability:** The preservation of records will facilitate greater transparency and accountability in the voluntary liquidation process.
* **Facilitation of Reviews and Investigations:** Preserved records will be readily available for reviews by the IBBI, Adjudicating Authority, or other relevant bodies, aiding in the detection and prevention of irregularities.
* **Greater Confidence in the Voluntary Liquidation Process:** The improved record-keeping practices will likely bolster confidence in the integrity of the voluntary liquidation process.
**9. Conclusion:**
The Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Second Amendment Regulations, 2022, represents a significant step towards strengthening the regulatory framework for voluntary liquidations. By mandating detailed record preservation procedures, the amendment aims to enhance transparency, accountability, and the overall integrity of the liquidation process. These changes will impact liquidators, corporate entities undergoing liquidation, and regulatory bodies involved in overseeing the process.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: A regulatory body in India responsible for the implementation of the Insolvency and Bankruptcy Code.
Insolvency and Bankruptcy Code, 2016: An Indian law that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Second Amendment Regulations, 2022: Regulations amending the Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Regulations, 2017.
Insolvency and Bankruptcy Board of India Voluntary Liquidation Process Regulations, 2017: Regulations pertaining to the voluntary liquidation process under the Insolvency and Bankruptcy Code.
New Delhi: The location where the notification was issued.
Ravi Mital: Chairperson of Insolvency and Bankruptcy Board of India
Adjudicating Authority: The authority that approves resolution plans for corporate debtors
Appellate Authority: The authority that handles appeals from the decisions of the Adjudicating Authority
High Courts: Courts of higher jurisdiction in India
Supreme Court: The highest court of appeal in India.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-16092022-238899
xxxGIDHxxx
CG-DL-E-16092022-238899
xxxGIDExxx
ऄसाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 457] नइ ददल्ली, िुिवार, जसतम्ब र 16, 2022/भाद्र 25, 1944
No. 457] NEW DELHI, FRIDAY, SEPTEMBER 16, 2022/BHADRA 25, 1944
भारतीय ददवाला और िोधन ऄक्षमता बोड ड
ऄजधसचू ना
नइ ददल्ली, 16 जसतम्बर, 2022
भारतीय ददवाला और िोधन ऄक्षमता बोड ड (स्ट्वजै छछक समापन प्रदिया) (दसू रा सिं ोधन) जवजनयम, 2022
स.ं अइ.बी.बी.अइ./2022-23/जी.एन./अर.इ.जी.095.—भारतीय ददवाला और िोधन ऄक्षमता बोडड, ददवाला
और िोधन ऄक्षमता संजहता, 2016 (2016 का 31) की धारा 240 के साथ पठठत धारा 196 की ईपधारा (1) के खंड (न)
द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, भारतीय ददवाला और िोधन ऄक्षमता बोडड (स्ट्वैजछछक समापन प्रदिया)
जवजनयमन, 2017 का और संिोधन करने के जलए जनम्नजलजखत जवजनयम बनाता ह,ै ऄथाडत्: -
1. (1) आन जवजनयमों का संजक्षप्त नाम भारतीय ददवाला और िोधन ऄक्षमता बोडड (स्ट्वैजछछक समापन प्रदिया) (दसू रा
संिोधन) जवजनयम, 2022 ह ै।
(2) य ेराजपत्र में ईनके प्रकािन की तारीख को प्रवृत्त होंग े।
2. भारतीय ददवाला और िोधन ऄक्षमता बोड ड (स्ट्वैजछछक समापन प्रदिया) जवजनयमन, 2017 (जजन्ह ें आसम ें आसके
पश्चात् “मूल जवजनयम” कहा गया ह)ै के जवजनयम 3 म,ें ईप-जवजनयम (4) के पश्चात्, जनम्नजलजखत ईप-जवजनयम ऄतं ःस्ट्थाजपत
दकया जाएगा, ऄथाडत:् -
“(5) ईप-जवजनयम (1)(क) के ऄधीन या धारा 59(3)(क) के ऄधीन घोषणा म ें यह ईपबंध होगा दक कारपोरेट व्यजि
ने ईसके जवधटन के पश्चात ् ईसके ऄजभलेखों को पठररजक्षत रखने के जलए व्यवस्ट्था की ह ै।”
3. मूल जवजनयमों में, जवजनयम 41 के स्ट्थान पर, जनम्नजलजखत जवजनयम रखा जाएगा, ऄथाडत्:-
“41. ऄजभलखे ों का पठररक्षण
6228 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
(1) पठरसमापक ऐसे समस्ट्त ऄजभलेखों की प्रजतयों को, जो स्ट्वैजछछक समापन प्रदिया का संपूणड वणडन देने के जलए
अवश्यक ह,ै पठररजक्षत रखगे ा ।
(2) ईप-जवजनयम (1) के ऄधीन बाध्यताओं की व्यापकता पर प्रजतकूल प्रभाव डाल े जबना, पठरसमापक
जनम्नजलजखत से संबंजधत या ईनका अधार गठठत करने वाल ेऄजभलेखों की प्रजतयां पठररजक्षत रखेगा -
(क) पठरसमापक के रूप म ेंईसकी जनयुजि, जजसके ऄंतगडत जनयुजि के जनबंधन भी ह;ैं
(ख) ऄसाआनमेंट सौंपन/े ग्रहण करन;े
(ग) स्ट्वैजछछक समापन प्रदिया प्रारंभ करन;े
(घ) लोक ईद्घोषणा;
(ङ) दावों, दावों के सत्यापन और जहतधारकों की सूची;
(च) व्यावसाजयकों, रजजस्ट्रीकृत मल्ू यांककों, अदद के जनयोजन, जजसके ऄंतगडत ईनके द्वारा दकए गए कायड,
प्रस्ट्तुत की गइ ठरपोटें अदद भी ह;ैं
(छ) न्यायजनणाडयक प्राजधकारी, ऄपील प्राजधकारी, ईच्च न्यायालयों, ईच्चतम न्यायालय, जो भी लाग ू हो, के
समक्ष सभी फाआललग और ईनके अदिे ;
(ज) बोडड और ददवाला व्यावसाजयक एजेंजसयों के समक्ष कानूनी फाआललग;
(झ) स्ट्वैजछछक समापन प्रदिया के दौरान पत्र-व्यवहार;
(ञ) स्ट्वैजछछक समापन प्रदिया की लागत;
(ट) समस्ट्त ठरपोटें, रजजस्ट्टर, दस्ट्तावेज़, जैसे प्रारंजभक ठरपोटड, वार्षषक प्राजस्ट्थजत ठरपोक्ट, जवघटन से पूवड ऄंजतम
ठरपोटड, मलू जवजनयमों के जवजनयम 98 और 10 म ेंईजल्लजखत जवजभन्न रजजस्ट्टर और बजहयां, अदद;
(ठ) ऐसा कोइ ऄन्य ऄजभलेख, जजससे प्रदिया का संपूणड वणडन ददया जाना ऄपेजक्षत ह ै।
(3) पठरसमापक, बोडड, न्यायजनणाडयक प्राजधकारी, ऄपील प्राजधकारी या दकसी न्यायालय के समक्ष, जो भी पश्चात्वती हो,
कारपोरेट व्यजि के जवघटन की तारीख स-े
(क) कम से कम अठ वषों के, समस्ट्त ऄजभलेखों की आलैक्राजनक प्रजत (भौजतक और आलैक्राजनक); और
(ख) कम से कम तीन वष ड की ऄवजध के जलए, ऄजभलेखों की एक भौजतक प्रजत, पठररजक्षत रखगे ा ।
(4) प्रदिया के दौरान पठरसमापक के बदल े जाने की दिा में, छोड़ने वाला पठरसमापक, ईप-जवजनयम (1) और (2) के
ऄधीन ऄजभलेख नए पठरसमापक को सौंपेगा ।
(5) पठरसमापक ऄजभलेखों को दकसी सुरजक्षत स्ट्थान पर पठररजक्षत रखगे ा और वह ऄजभलेखों को, जैसा दक संजहता और मूल
जवजनयमों के ऄधीन ऄपेजक्षत हो, प्रस्ट्तुत करन े के जलए अबद्ध होगा ।
(6) पठरसमापक, धारा 59 की ईपधारा (7) के ऄधीन न्यायजनणाडयक प्राजधकारी के समक्ष फाआल दकए गए अवेदन के साथ
ईप-जवजनयम (1) और (2) के ऄधीन ऄजभलेखों के पठररक्षण के ब्यौरे और ईसकी रीजत ईपलब्ध कराएगा ।
स्ट्पष्टीकरण – आस जवजनयम के ऄधीन जनर्ददष्ट ऄजभलेख के ऄंतगडत दकसी समापन प्रदिया की ऐसे ऄवजध से संबंजधत ऄजभलखे
भी ह,ै जजसके दौरान पठरसमापक न े आस तथ्य के होत े हुए भी दक ईसने ईसके प्रारंभ से ऄसाआनमेंट ग्रहण नहीं की थी या
ईसके पूरा होने तक ऄसाआनमेंट जारी नहीं रखी थी, आस रूप म ेंकायड दकया था ।"
रजव जमत्तल, ऄध्यक्ष
[जवज्ञापन-III/4/ऄसा./277/2022-23]
ठटप्पण : भारतीय ददवाला और िोधन ऄक्षमता बोडड (स्ट्वैजछछक समापन प्रदिया) जवजनयमन, 2017, भारत के राजपत्र,
ऄसाधारण, भाग III, खंड 4, सं. 130, तारीख 31 माचड, 2017 में ऄजधसूचना सं. अइ.बी.बी.अइ./2016-
17/जी.एन./अर.इ.जी.010, तारीख 31 माच,ड 2017 द्वारा प्रकाजित दकए गए थ े और ईनमें ऄंजतम संिोधन
भारत के राजपत्र, ऄसाधारण, भाग 3, खंड 4, सं. 182, तारीख 5 ऄप्रैल, 2022 म ें ऄजधसूचना सं.
अइ.बी.बी.अइ./2022-23/जी. एन./अर.इ.जी.081, तारीख 5 ऄप्रलै , 2022 प्रकाजित भारतीय ददवाला और
िोधन ऄक्षमता बोड ड(स्ट्वैजछछक समापन प्रदिया)(सिं ोधन) जवजनयम, 2022 द्वारा दकया गया था ।[भाग III—खण् ड 4] भारत का राजपत्र : ऄसाधारण 3
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 16th September, 2022
Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment)
Regulations, 2022
No. IBBI/2022-23/GN/REG095.—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) (Second Amendment) Regulations, 2022.
(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 3, after sub-regulation (4), the following
sub-regulation shall be inserted, namely:-
“(5) The declaration under sub-regulation (1)(a) or under section 59(3)(a) shall provide that the corporate
person has made provision for preservation of its records after its dissolution.”
3. In the principal regulations, for regulation 41, the following regulation shall be substituted, namely:-
“41. Preservation of records.
(1) The liquidator shall preserve copies of all such records which are required to give a complete account
of the voluntary liquidation process.
(2) Without prejudice to the generality of the obligations under sub-regulation (1), the liquidator shall
preserve copies of records relating to or forming the basis of:-
(a) his appointment as liquidator, including the terms of appointment;
(b) handing over / taking over of the assignment;
(c) initiation of voluntary liquidation process;
(d) public announcement;
(e) claims, verification of claims, and list of stakeholders;
(f) engagement of professionals, registered valuers, etc. including work done, reports etc., submitted
by them;
(g) all filings with the Adjudicating Authority, Appellate Authority, High Courts, Supreme Court,
whichever applicable and their orders;
(h) statutory filings with Board and insolvency professional agencies;
(i) correspondence during the voluntary liquidation process;
(j) cost of voluntary liquidation process;
(k) all reports, registers, documents such as preliminary report, annual status report, final report
prior to dissolution, various registers and books, etc. mentioned in Regulation 8 and 10 of
principal regulations; and
(l) any other records, which is required to give a complete account of the process.
(3) The liquidator shall preserve:
(a) electronic copy of all records (physical and electronic) for a minimum period of eight years; and
(b) a physical copy of records for a minimum period of three years;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
from the date of dissolution of the corporate person, before the Board, the Adjudicating Authority,
Appellate Authority or any Court, whichever is later.
(4) In case of replacement of liquidator during the process, the outgoing liquidator shall handover the
records under sub-regulation (1) and (2) to the new liquidator.
(5) The liquidator shall preserve the records at a secure place and shall be obliged to produce records as
may be required under the Code and the principal regulations.
(6) The liquidator shall, along with the application filed under sub-section (7) of section 59 to the
Adjudicating Authority, provide the details and manner of preservation of records under sub-
regulation (1) and (2).
Explanation - The records referred to in this regulation includes records pertaining to the period of a
liquidation process during which the liquidator acted as such, irrespective of the fact that he did not take up
the assignment from its commencement or continue the assignment till its conclusion.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./277/2022-23]
Note : The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017
were published vide notification No. IBBI/2016-17/GN/REG010 on 31st March, 2017 in the Gazette
of India, Extraordinary, Part III, Section 4, No. 130 dated 31st March, 2017 and were last amended
by the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment)
Regulations, 2022 published vide notification No. IBBI/2022-23/GN/REG.081 dated 05th April
2022 in the Gazette of India, Extraordinary, Part III, Section 4, No. 182 on 05th April, 2022.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.