Executive Summary:
This notification introduces the Insolvency and Bankruptcy Board of India (IBBI) Insolvency Resolution Process for Corporate Persons Fourth Amendment Regulations, 2018. It amends the 2016 regulations and came into force on October 5, 2018, the date of its publication in the Official Gazette. The amendments address various aspects of the corporate insolvency resolution process, including meeting notices, voting procedures, and priority of payments.
Key Points / Main Content:
Meeting Notices:
* The notice of the meeting must include a list of matters to be discussed, a list of issues to be voted upon, and copies of relevant documents.
Voting Procedures:
* The resolution professional must circulate meeting minutes electronically within 48 hours of the meeting and seek votes from non-attending members via electronic voting, kept open for at least 24 hours.
* Authorised representatives must circulate meeting minutes to creditors, announce the voting window at least 24 hours in advance, and keep the window open for at least 12 hours.
* Authorised representatives must exercise votes either electronically or through an electronic voting system based on voting instructions received from creditors.
Priority of Payments:
* The amount due to operational creditors under a resolution plan shall be given priority in payment over financial creditors.
Other Amendments:
* Clause (f) of sub-regulation (1) in regulation 2 has been omitted.
* Sub-regulation 3A in regulation 39 has been omitted.
* Regulation 39A is inserted, mandating the preservation of physical and electronic records related to the corporate insolvency resolution process, as per the record retention schedule communicated by the Board.
Impact Analysis:
Resolution Professionals:
* Impact: Must adhere to revised regulations for meeting notices, circulation of minutes, and electronic voting. Responsible for preserving records related to the insolvency resolution process.
* Action Required: Implement changes in meeting procedures and ensure proper record-keeping.
Creditors (Financial and Operational):
* Impact: Operational creditors now have payment priority over financial creditors in a resolution plan. Changes in voting procedures impact how creditors provide voting instructions and how their authorised representatives vote.
* Action Required: Understand the revised priority of payments and engage with authorised representatives to provide clear voting instructions.
Authorised Representatives:
* Impact: New responsibilities related to circulating minutes, announcing voting windows, and exercising votes based on creditor instructions.
* Action Required: Implement revised procedures for communicating with creditors and exercising votes.
Insolvency and Bankruptcy Board of India (IBBI):
* Impact: Responsible for communicating the record retention schedule for corporate insolvency resolution process records.
* Action Required: Communicate the record retention schedule to interim resolution professionals and resolution professionals.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: Regulatory body that oversees insolvency proceedings and regulates insolvency professionals in India.
Insolvency and Bankruptcy Code, 2016: Law governing insolvency and bankruptcy proceedings in India.
Insolvency Resolution Process for Corporate Persons Fourth Amendment Regulations, 2018: Amendment regulations pertaining to the insolvency resolution process for corporate entities.
Official Gazette: Official government publication where regulations and notifications are published.
Insolvency Professional Agencies: Entities that regulate and monitor insolvency professionals.
M. S. Sahoo: Chairperson of the Insolvency and Bankruptcy Board of India.
New Delhi: Location of publication and the principal place of business of the Insolvency and Bankruptcy Board of India, Delhi
Insolvency Resolution Process for Corporate Persons Regulations, 2016: Regulations governing the insolvency resolution process for corporate entities, which this notification amends.
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 372] ubZ fnYyh] 'kqØokj] vDrwcj 5] 2018@vkf'ou 13] 1940
No. 372] NEW DELHI, FRIDAY, OCTOBER 5, 2018/ASVINA 13, 1940
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ददददववववााााललललाााा औऔऔऔरररर शशशशोोोोधधधधनननन अअअअ(cid:14)(cid:14)(cid:14)(cid:14)ममममतततताााा बबबबोोोोडडडड (cid:19)(cid:19) (cid:19)(cid:19)
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:4)द(cid:6) ली, 5 अ(cid:10)त ूबर, 2018
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ददददववववााााललललाााा औऔऔऔरररर शशशशोोोोधधधधनननन अअअअ(cid:14)(cid:14)(cid:14)(cid:14)ममममतततताााा बबबबोोोोडडडड (cid:19)(cid:19) (cid:19)(cid:19)((((ककककााााररररपपपपोोोोररररेेेेटटटट (cid:28)(cid:28)(cid:28)(cid:28)िििि(cid:30)(cid:30)(cid:30)(cid:30)यययय(cid:31)(cid:31)(cid:31)(cid:31) ककककेेेे ििििललललएएएए (cid:1)(cid:1)(cid:1)(cid:1)ददददववववााााललललाााा ससससममममााााधधधधाााानननन """"(cid:1)(cid:1)(cid:1)(cid:1)####ययययाााा))))
((((चचचचौौौौथथथथाााा ससससशशशशंंंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011118888
सससस..ंं..ंं आआआआईईईई....बबबबीीीी....बबबबीीीी....आआआआईईईई....////2222000011118888----11119999////जजजजीीीी....एएएएनननन....////आआआआरररर....ईईईई....जजजजीीीी....000033332222....————भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड,(cid:26) (cid:4)दवाला
और शोधन अ(cid:22)मता सिं हता, 2016 (2016 का 31) क( धारा 240 के साथ प-ठत धारा 196 क( उपधारा (1) के खंड (न)
2ारा 3द4 शि5य6 का 3योग करते 8ए, भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला
समाधान 3(cid:4)<या) िविनयम, 2016 का सशं ोधन करन ेके िलए िन=िलिखत िविनयम बनाता ह,ै अथा(cid:26)त:् -
1. (1) इन िविनयम6 का संि(cid:22)A नाम भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला
समाधान 3(cid:4)<या) (चौथा संशोधन) िविनयम, 2018 ह ै।
(2) य ेराजपG मH उनके 3काशन क( तारीख स े3व4ृ ह6ग े।
2. भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) िविनयम, 2016
(िजJह Hइसम Hइसके पKात् मूल िविनयम कहा गया ह)ै के िविनयम 2 के उप-िविनयम (1) के खंड (च) का लोप (cid:4)कया जाएगा ।
3. मूल िविनयम6 के िविनयम 21 म,H उप-िविनयम (3) के Lथान पर िन=िलिखत उप-िविनयम रखा जाएगा, अथात(cid:26) :्-
“(3) बैठक क( सूचना मH, िन=िलिखत सिहत बैठक क( कायस(cid:26) चू ी होगी –
(i) उन िवषय6 क( सूची, िजनके संबंध म Hबैठक म Hिवचार (cid:4)कया जाना ह;ै
(ii) उन मOु 6 क( सूची, िजनके संबंध म Hबैठक म Hमतदान (cid:4)कया जाना ह;ै और
(iii) उन समLत दLतावेज़6 क( 3ितया,ं जो बैठक म Hचचा (cid:26)(cid:4)कए जाने वाले िवषय6 और मतदान (cid:4)कए जाने वाल े मुO6 स े
सुसंगत ह Q।”।
5876 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
4. मूल िविनयम6 के िविनयम 25 म,H उप-िविनयम (5) के Lथान पर िन=िलिखत उप-िविनयम रखH जायHगे, अथा(cid:26)त:्-
“(5) ससससममममााााधधधधाााानननन (cid:28)(cid:28)(cid:28)(cid:28)ााााववववससससााााििििययययकककक ––––
(क) बैठक क( समािA के अड़तालीस घंटे के भीतर सिमित के समLत सदLय6 और 3ािधकृत 3ितिनिध, य(cid:4)द कोई, को
इलै(cid:10)Uािनक माVयम6 स ेबैठक के काय(cid:26)वृ4 प-रचािलत करेगा; और
(ख) ऐस ेसदLय6 से, िजJह6न ेबैठक म,H मतदान के िलए सूचीबX िवषय6 पर मतदान नहY (cid:4)कया था, िविनयम 26 के
अनसु ार इलै(cid:10)Uािनक मतदान पVदित से मतदान क( ईZसा करेगा जहा ं (cid:4)क मतदान, काय(cid:26)व4ृ के प-रचालन स े चौबीस घंटे के
िलए खुला रखा जाएगा ।
(6) 3ािधकृत 3ितिनिध, उप-िविनयम (5) के अधीन 3ाA बैठक के काय(cid:26)वृ4 को उस वग(cid:26) के लेनदार6 को प-रचािलत
करेगा और मतदान अनुदशे 6 के िलए [वंडो के खलु ने के कम स े कम चौबीस घंटे पूव(cid:26) मतदान [वंडो क( घोषणा करेगा और
मतदान [वंडो को कम से कम बारह घंटे के िलए खुला रखेगा ।”।
5. मूल िविनयम6 के िविनयम 26 म,H उप-िविनयम (1) के पKात्, िन=िलिखत उप-िविनयम अंतःLथािपत (cid:4)कया
जाएगा, अथा(cid:26)त्:-
“(1क) 3ािधकृत 3ाितिनिध, मतदान का 3योग उसके 2ारा िविनयम 25 के उप-िविनयम (6) के अनसु रण म Hउस वग (cid:26)
के लेनदार6 से 3ाA मतदान अनुदशे 6 के अनसु ार या तो इलै(cid:10)Uािनक माVयम6 2ारा या इलै(cid:10)Uािनक मतदान 3णाली 2ारा
करेगा ।”।
6. मलू िविनयम6 के िविनयम 38 मH, उप-िविनयम (1) के Lथान पर िन=िलिखत उप-िविनयम रखा जाएगा, अथा(cid:26)त:्-
“(1) (cid:4)कसी समाधान योजना के अधीन 3(cid:4)<यागत लेनदार6 को दये रकम को संदाय के मामल े म H िव4ीय लेनदार6 के
मुकाबल े3ाथिमकता दी जाएगी ।”।
7. मूल िविनयम6 के िविनयम 39 म,H-
(क) उप-िविनयम (1) म,H खंड (ख) का लोप (cid:4)कया जाएगा;
(ख) उप-िविनयम (3क) का लोप (cid:4)कया जाएगा ।
8. मूल िविनयम6 मH, िविनयम 39 के पKात ्िन=िलिखत िविनयम अंतःLथािपत (cid:4)कया जाएगा, अथात(cid:26) :्-
““““33339999कककक.... अअअअििििभभभभललललखखेेखखेे (cid:31)(cid:31)(cid:31)(cid:31) ककककाााा ससससररंंररंं (cid:14)(cid:14)(cid:14)(cid:14)णणणण ---- यथािLथित, अतं -रम समाधान ;ावसाियक या समाधान ;ावसाियक, कारपोरेट
ऋणी क( कारपोरेट (cid:4)दवाला समाधान 3(cid:4)<या स े संबंिधत अिभलेख6 क( एक भौितक तथा इल(cid:10)ै Uािनक 3ित ऐसी अिभलेख
3ितधारण अनुसूची के अनसु ार, जो बोड (cid:26) 2ारा (cid:4)दवाला ;ावसाियक अिभकरण6 स े परामश (cid:26) करके सिू चत क( जाए, प-ररि(cid:22)त
रखेगा ।”।
डा. एम. एस. सा‘, अVय(cid:22)
िवaापन /4/असा./248/18
[ -III ]
++++टटटट,,,,पपपपणणणण:::: भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) िविनयम,
2016, भारत के राजपG, असाधारण, म H अिधसूचना स.ं आई.बी.बी.आई./2016-17/जी.एन./आर.ई.जी.004,
तारीख 30 नवcबर, 2016 2ारा 3कािशत (cid:4)कए गए थ ेऔर उनम HतdपKात ्
1) अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.013, तारीख 16 अगLत, 2017 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (संशोधन)
िविनयम, 2017;¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
2) अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.018, तारीख 5 अ(cid:10)टूबर, 2017 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (दसू रा संशोधन)
िविनयम, 2017;
(3) अिधसूचना सं. आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.019, तारीख 7 नवcबर, 2017 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (तीसरा
संशोधन) िविनयम, 2017;
(4) अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.022, तारीख 31 (cid:4)दसcबर, 2017 2ारा
3कािशत भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (चौथा
संशोधन) िविनयम, 2017;
(5) अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.024, तारीख 6 फरवरी, 2018 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (संशोधन)
िविनयम, 2018;
(6) अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.030, तारीख 27 माच,(cid:26) 2018 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (दसू रा संशोधन)
िविनयम, 2018; और
(7) अिधसूचना सं. आई.बी.बी.आई./2018-19/जी.एन./आर.ई.जी.031, तारीख 3 जलु ाई, 2018 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:22)मता बोड (cid:26) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (तीसरा
संशोधन) िविनयम, 2018
2ारा सशं ोधन (cid:4)कए गए थ े।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 5th October, 2018
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (INSOLVENCY RESOLUTION PROCESS
FOR CORPORATE PERSONS) (FOURTH AMENDMENT) REGULATIONS, 2018
No. IBBI/2018-19/GN/REG032.—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 (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:-
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) (Fourth Amendment) Regulations, 2018.
(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 (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 2, in sub-regulation (1),
clause (f) shall be omitted.
3. In the principal regulations, in regulation 21, for sub-regulation (3), following sub-regulation shall be
substituted, namely: -
“(3) The notice of the meeting shall contain the following-
(i) a list of the matters to be discussed at the meeting;
(ii) a list of the issues to be voted upon at the meeting; and4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(iii) copies of all documents relevant to the matters to be discussed and the issues to be voted upon at the
meeting.”.
4. In the principal regulations, in regulation 25, for sub-regulation (5), the following sub-regulations shall be
substituted, namely: -
“(5) The resolution professional shall-
(a) circulate the minutes of the meeting by electronic means to all members of the committee and the
authorised representative, if any, within forty-eight hours of the conclusion of the meeting; and
(b) seek a vote of the members who did not vote at the meeting on the matters listed for voting, by
electronic voting system in accordance with regulation 26 where the voting shall be kept open for at
least twenty-four hours from the circulation of the minutes.
(6) The authorised representative shall circulate the minutes of the meeting received under
sub-regulation (5) to creditors in a class and announce the voting window at least twenty-four hours before
the window opens for voting instructions and keep the voting window open for at least twelve hours.”.
5. In the principal regulations, in regulation 26, after sub-regulation (1), the following sub-regulation shall be
inserted, namely: -
“(1A) The authorised representative shall exercise the votes either by electronic means or through
electronic voting system as per the voting instructions received by him from the creditors in the class
pursuant to sub-regulation (6) of regulation 25.”.
6. In the principal regulations, in regulation 38, for sub-regulation (1), the following sub-regulation shall be
substituted, namely: -
“(1) The amount due to the operational creditors under a resolution plan shall be given priority in payment
over financial creditors.”.
7. In the principal regulations, in regulation 39, -
(a) in sub-regulation (1), clause (b) shall be omitted;
(b) sub-regulation (3A) shall be omitted;
8. In the principal regulations, after regulation 39, the following regulation shall be inserted, namely: -
“39A. Preservation of records.-The interim resolution professional or the resolution professional, as the
case may be, shall preserve a physical as well as an electronic copy of the records relating to corporate
insolvency resolution process of the corporate debtor as per the record retention schedule as may be
communicated by the Board in consultation with Insolvency Professional Agencies.”.
Dr. M. S. SAHOO, Chairperson
[ADVT.-III/4/Exty./248/18]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 were published in the Gazette of India Extraordinary vide notification No. IBBI/2016-
17/GN/REG004 on 30th November, 2016 and was subsequently amended by—
(1) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Amendment) Regulations, 2017 vide notification No. IBBI/2017-18/GN/REG013, dated the 16th August,
2017;
(2) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Second Amendment) Regulations, 2017 vide notification No. IBBI/2017- 18/GN/REG18, dated the
5th October, 2017;
(3) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Third Amendment) Regulations, 2017 vide notification No. IBBI/2017- 18/GN/REG019, dated the
7th November, 2017;
(4) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Fourth Amendment) Regulations, 2017 vide notification No. IBBI/2017- 18/GN/REG022, dated the
31st December, 2017;
(5) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Amendment) Regulations, 2018 vide notification No. IBBI/2017-18/GN/REG024, dated the
6th February, 2018; and¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5
(6) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Second Amendment) Regulations, 2018 vide notification No. IBBI/2017-18/GN/REG030, dated the
27th March, 2018.
(7) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Third Amendment) Regulations, 2018 vide notification No. IBBI/2018-19/GN/REG031, dated the
3rd July, 2018.
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.