Executive Summary:
This notification announces the Insolvency and Bankruptcy Board of India Liquidation Process Fourth Amendment Regulations, 2020. These regulations amend the 2016 Liquidation Process Regulations, effective from the date of their publication in the Official Gazette, introducing provisions for the transfer of debt and assignment of not readily realisable assets during liquidation.
Key Points / Main Content:
Transfer of Debt Due to Creditors:
* A creditor may assign or transfer their debt to another person during liquidation, in accordance with applicable laws.
* Both parties involved in the debt assignment or transfer must provide the liquidator with the terms of the agreement and the assignee/transferee's identity.
* The liquidator must then modify the list of stakeholders accordingly.
Assignment of Not Readily Realisable Assets:
* A liquidator may assign or transfer not readily realisable assets through a transparent process, after consulting with the stakeholders consultation committee.
* The assignment can be made to any person eligible to submit a resolution plan.
* Not readily realisable assets include those that could not be sold through available options, contingent or disputed assets, and assets underlying proceedings for preferential, undervalued, extortionate credit, and fraudulent transactions.
Regulation 38 Amendment:
* In Regulation 38(1), the phrase "cannot be readily or advantageously sold" is replaced with "could not be sold, assigned or transferred."
Impact Analysis:
Creditors:
* Impact: Creditors gain the ability to transfer debts during liquidation, potentially allowing them to recover value from otherwise illiquid claims.
* Action Required: If transferring debt, creditors must inform the liquidator of the terms and the assignee's identity.
Liquidators:
* Impact: Liquidators are given the power to assign not readily realisable assets and must update the stakeholder list upon debt transfers.
* Action Required: Liquidators must establish a transparent process for assigning not readily realisable assets and consult with the stakeholders consultation committee. Modify stakeholder list as required.
Corporate Debtors:
* Impact: The regulations clarify the handling of assets during liquidation, which may impact the ultimate outcome for the debtor.
Potential Resolution Applicants:
* Impact: Entities eligible to submit a resolution plan are now potential assignees of not readily realisable assets, creating new opportunities.
Stakeholders Consultation Committee:
* Impact: The committee will be consulted on the assignment or transfer of not readily realisable assets.
* Action Required: The committee must provide input to the liquidator regarding the assignment or transfer of not readily realisable assets.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: A regulatory body established under the Insolvency and Bankruptcy Code, 2016, responsible for the regulation and oversight of insolvency proceedings in India.
Insolvency and Bankruptcy Code, 2016: A law in India 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 Liquidation Process Regulations, 2016: Regulations framed by the Insolvency and Bankruptcy Board of India to govern the liquidation process under the Insolvency and Bankruptcy Code, 2016.
Insolvency and Bankruptcy Board of India Liquidation Process Fourth Amendment Regulations, 2020: An amendment to the Insolvency and Bankruptcy Board of India Liquidation Process Regulations, 2016.
New Delhi: The location where the notification was issued.
M. S. Sahoo: Chairperson of the Insolvency and Bankruptcy Board of India.
Official Gazette: The official government publication in which laws, regulations, and notifications are published.
stakeholders consultation committee: A committee formed during the liquidation process to consult with stakeholders.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एलxx.x-GअI.D-E1x7x1x 12020-223107
CG-DL-E-17112020-223107
ऄसाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 490] नइ ददल्ली, िेिवार, नवम्बर 13, 2020/कार्ततक 22, 1942
No. 490] NEW DELHI, FRIDAY, NOVEMBER 13, 2020/KARTIKA 22, 1942
भारतीय ददवाला और िोधन ऄक्षमता बोड ड
ऄजधसचू ना
नइ ददल् ली, 13 नवम् बर, 2020
भारतीय ददवाला और िोधन ऄक्षमता बोडड (समापन प्रदिया) (चौथा सिं ोधन) जवजनयम, 2020
अइ.बी.बी.अइ./2020-21/िी.एन./अर.इ.िी.067 .—भारतीय ददवाला और िोधन ऄक्षमता बोडड, ददवाला और िोधन
ऄक्षमता सजं िता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196 की ईपधारा (1) के खंड (न) द्वारा प्रदत्त िजियों का
प्रयोग करते हुए, भारतीय ददवाला और िोधन ऄक्षमता बोडड (समापन प्रदिया) जवजनयमन, 2016 का और संिोधन करने के जलए
जनम्नजलजखत जवजनयम बनाता िै, ऄथाडत्:—
1. (1) आन जवजनयमों का संजक्षप्त नाम भारतीय ददवाला और िोधन ऄक्षमता बोडड (समापन प्रदिया) (चौथा संिोधन) जवजनयम,
2020 ि ै।
(2) ये रािपत्र में प्रकािन की तारीख को प्रवृत्त िोंग े।
2. भारतीय ददवाला और िोधन ऄक्षमता बोडड (समापन प्रदिया) जवजनयमन, 2016 (जिन्ि ेंआसमें आसके पश्चात् मूल किा गया िै)
में, जवजनयम 30 के पश्चात्, जनम्नजलजखत जवजनयम ऄतं ःस्ट्थाजपत दकया िाएगा, ऄथाडत:्—
“30क. लने दारों को दये ऋण का ऄतं रण
(1) कोइ लेनदार, समापन प्रदिया के दौरान ईसे दये ऋण का दकसी ऄन्य यक्जि को समनेदिे न या ऄंतरण, ऐसे समनेदिे न
या ऄंतरण से संबंजधत तत्समय प्रवत्तृ जवजध के ऄनेसार कर सकेगा ।
(2) ििां कोइ लेनदार ईसे दये ऋण का ईप-जवजनयम (1) के ऄधीन दकसी ऄन्य यक्जि को समनेदिे न या ऄंतरण करता िै
विां दोनों पक्षकार पठरसमापक को ऐसे समनेदिे न या ऄंतरण के जनबंधन और समनेदजे िती या ऄंतठरती की पिचान ईपलब्ध
कराएंगे ।
5527 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(3) पठरसमापक, जितधारकों की सूची में जवजनयम 31 के ईपबंधों के ऄनेसार ईपांतरण करेगा ।‖।
3. मूल जवजनयमों में, जवजनयम 37 के पश्चात् जनम्नजलजखत जवजनयम ऄंतःस्ट्थाजपत दकया िाएगा, ऄथातड :्—
―37क. ऐसी अजस्ट्तयों का समनदे िे न, िो असानी स ेवसलू ीयोग्य निीं ि ै।
(1) पठरसमापक, ऐसी दकसी अजस्ट्त को, िो असानी से वसूलीयोग्य निीं िै, दकसी ऐसे यक्जि को, िो कारपोरेट ऋणी के
ददवाला समाधान के जलए समाधान योिना प्रस्ट्तेत करने का पात्र ि,ै जवजनयम 31क के ऄनेसार जितधारकों की परामिड सजमजत के
परामिड से एक पारदिी प्रदिया के माध्यम से प्रजतफल के जलए समनेदजे ित या ऄंतठरत कर सकेगा ।
स्ट्पष्टीकरण – आस ईप-जवजनयम के प्रयोिनों के जलए ―असानी से वसूलीयोग्य निीं अजस्ट्त‖ से समापन संपदा में सजम्मजलत
ऐसी कोइ अजस्ट्त ऄजभप्रेत िै, जिसका जविय ईपलब्ध जवकल्पों के माध्यम से निीं दकया िा सका था और आसके ऄंतगडत अकजस्ट्मक या
जववाददत अजस्ट्तया ं और संजिता की धारा 43 से 51 और धारा 66 म ें जनर्ददष्ट ऄजधमानी, न्यनू मल्ू यांदकत, ईद्दापक प्रत्यय और कपटपूण ड
संयक्विारों से संबंजधत कायडवाजियों में ऄंतर्तनजित अजस्ट्तयां भी ि ैं।‖
4. मूल जवजनयमों म,ें जवजनयम 38 के ईपजनयम (1) में प्रयेि िब्दों ‘असानी से या लाभप्रद तरीके से निीं बेची िा सकती िै’, के स्ट्थान
पर “जविय, समनेदिे ीत या ऄंतठरत निीं की िा सकी” िब्द रखे िाएंगे।
डॉ. एम. एस. साहू, ऄध्यक्ष
[जवज्ञापन.-III/4/ऄसा./348/2020-21]
ठटप्पण: भारतीय ददवाला और िोधन ऄक्षमता बोडड (समापन प्रदिया) जवजनयमन, 2016, भारत के रािपत्र, ऄसाधारण, भाग 3, खंड 4
स.ं 460, तारीख 15 ददसम्बर, 2016 में ऄजधसूचना सं. अइ.बी.बी.अइ./2016-17/िी.एन./ अर.इ.िी.005, तारीख 15
ददसम्बर, 2016 द्वारा प्रकाजित दकए गए थे और ईनमें ऄंजतम संिोधन भारत के रािपत्र, ऄसाधारण, भाग 3, खंड 4 सं.312,
तारीख 5 ऄगस्ट्त, 2020 में ऄजधसूचना सं. अइ.बी.बी.अइ./2020-21/ िी.एन./अर.इ.िी.062, तारीख 5 ऄगस्ट्त, 2020 द्वारा
प्रकाजित भारतीय ददवाला और िोधन ऄक्षमता बोडड (समापन प्रदिया) (तीसरा) जवजनयम, 2020 द्वारा दकया गया था ।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 13th November, 2020
Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020.
IBBI/2020-21/GN/REG067.—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 (Liquidation Process) Regulations, 2016, namely:—
1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth
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 (Liquidation Process) Regulations, 2016, (hereinafter referred to
as the principal regulations), after regulation 30, the following regulation shall be inserted, namely:—
“30A. Transfer of debt due to creditors.
(1) A creditor may assign or transfer the debt due to him or it to any other person during the liquidation process in
accordance with the laws for the time being in force dealing with such assignment or transfer.
(2) Where any creditor assigns or transfers the debt due to him or it to any other person under sub-regulation (1),
both parties shall provide to the liquidator the terms of such assignment or transfer and the identity of the
assignee or transferee.
(3) The liquidator shall modify the list of stakeholders in accordance with the provisions of regulation 31.‖.[भाग III—खण् ड 4] भारत का रािपत्र : ऄसाधारण 3
3. In the principal regulations, after regulation 37, the following regulation shall be inserted, namely:—
“37A. Assignment of not readily realisable assets.
(1) A liquidator may assign or transfer a not readily realisable asset through a transparent process, in consultation
with the stakeholders’ consultation committee in accordance with regulation 31A, for a consideration to any person,
who is eligible to submit a resolution plan for insolvency resolution of the corporate debtor.
Explanation.—For the purposes of this sub-regulation, ―not readily realisable asset‖ means any asset included in the
liquidation estate which could not be sold through available options and includes contingent or disputed assets and
assets underlying proceedings for preferential, undervalued, extortionate credit and fraudulent transactions referred to
in sections 43 to 51 and section 66 of the Code.‖.
4. In the principal regulations, in regulation 38, in sub-regulation (1), for the words ―cannot be readily or
advantageously sold‖, the words ―could not be sold, assigned or transferred‖ shall be substituted.
Dr. M. S. SAHOO , Chairperson
[ADVT.-III/4/Exty./348/2020-21]
Note: The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 were published vide
notification No. IBBI/2016-17/GN/REG005 dated 15th December, 2016 in the Gazette of India,
Extraordinary, Part III, Section 4, No. 460 on 15th December, 2016 and were last amended by the Insolvency
and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 vide notification
No. IBBI/2020- 21/GN/REG062, dated the 5th August, 2020 in the Gazette of India, Extraordinary, Part III,
Section 4, No. 312 on 5th August, 2020.
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.