Executive Summary:
This document contains the Third Amendment Regulations of 2017 to the Insolvency and Bankruptcy Board of India Fast Track Insolvency Resolution Process for Corporate Persons Regulations, 2017. It mandates additional disclosures from resolution applicants regarding their credibility and modifies the responsibilities of the resolution professional concerning certain transactions. These regulations came into force on November 7, 2017, the date of their publication in the Official Gazette.
Key Points / Main Content:
* **General Information**
* These regulations are called the Insolvency and Bankruptcy Board of India Fast Track Insolvency Resolution Process for Corporate Persons Third Amendment Regulations, 2017.
* The regulations are effective from November 7, 2017.
* **Amendment to Regulation 37:**
* A resolution plan must include details of the resolution applicant and connected persons.
* This enables the committee to assess their credibility.
* Required details include:
* Identity
* Convictions in the preceding five years
* Pending criminal proceedings
* Disqualifications under the Companies Act, 2013
* Identification as a willful defaulter
* Debarment from securities markets
* Transactions with the corporate debtor in the preceding two years
* Definition of connected persons:
* Promoters or those in management/control of the resolution applicant
* Future promoters or those in management/control of the corporate debtor
* Holding, subsidiary, associate companies, and related parties of the above
* **Amendment to Regulation 38:**
* The resolution professional must submit all compliant resolution plans to the committee.
* They must also provide details of any observed, found, or determined:
* Preferential transactions under section 43
* Undervalued transactions under section 45
* Extortionate credit transactions under section 50
* Fraudulent transactions under section 66
* Include orders of the adjudicating authority related to such transactions.
Impact Analysis:
* **Resolution Applicants and Connected Persons:**
* Impact: Increased disclosure requirements regarding identity, legal history, and financial dealings.
* Action Required: Compile and provide the required details to the committee.
* **Resolution Professionals:**
* Impact: Expanded responsibilities to identify and report specific types of transactions (preferential, undervalued, extortionate, fraudulent) to the committee.
* Action Required: Diligently investigate and report relevant transactions to the committee along with compliant resolution plans.
* **Committee of Creditors:**
* Impact: Access to more detailed information about resolution applicants and related transactions, which should help in making more informed decisions.
* Action Required: Carefully assess the credibility of resolution applicants based on the provided information and consider the reported transactions when evaluating resolution plans.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: A regulatory body in India responsible for overseeing insolvency proceedings and regulating insolvency professionals.
Insolvency and Bankruptcy Code, 2016: An Indian law that consolidates and amends laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
Companies Act, 2013: An Indian law that regulates incorporation, operation and winding up of companies.
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Securities and Exchange Board of India: The regulator of the securities market in India.
Fast Track Insolvency Resolution Process for Corporate Persons Regulations, 2017: Regulations pertaining to the fast track insolvency resolution process for corporate entities, as specified by the IBBI.
New Delhi: The capital city of India, where the notification was issued.
Mayapuri, New Delhi: An industrial area in Delhi where the Government of India Press is located.
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 431] NEW DELHI, TUESDAY, NOVEMBER 7, 2017/KARTIKA 16, 1939
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शोधन अ(cid:27)मता संिहता, 2016 (2016 का 31) क( धारा 240 के साथ प-ठत धारा 196 क( उपधारा (1) के खंड (न) 2ारा
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1. (1) इन िविनयम6 का संि(cid:27)D नाम भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए फा=ट >ैक
(cid:4)दवाला समाधान 3(cid:4)@या) (तीसरा संशोधन) िविनयम, 2017 ह ै।
(2) य ेराजपF मG उनके 3काशन क( तारीख स े3व4ृ ह6ग े।
2. भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30)(कारपोरेट ;ि5य6 के िलए फा=ट >ैक (cid:4)दवाला समाधान 3(cid:4)@या) िविनयम,
2017 (िजJह Gइसम Gइसके पKात् मलू िविनयम कहा गया ह)ै के िविनयम 37 के उप-िविनयम (2) के पKात ्िनAिलिखत
उप-िविनयम अंतः=थािपत (cid:4)कया जाएगा, अथा(cid:30)त:्—
“(3) (cid:4)कसी समाधान योजना म,G समाधान आवेदक और अJय संबO ;ि5 क( जानकारी का िववरण अतं Qव(cid:30)R
होगा, िजससे (cid:4)क सिमित समाधान योजना पर अपन ेअनमु ोदन के िलए िवचार करत ेसमय िववेकपणू (cid:30)िविनKय
करने के िलए ऐसे आवेदक और अJय संबO ;ि5 क( िवVसनीयता का िनधा(cid:30)रण करने म Gसमथ(cid:30) हो सके ।
""""पपपप))))ीीीीककककररररणणणण :::: इस उप-िविनयम के 3योजन6 के िलए,—
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अथा(cid:30)त ्:—
(क) पहचान;
(ख) िपछल ेपांच वषY के दौरान (cid:4)कसी अपराध के िलए दोषिसिO, य(cid:4)द कोई ह;ै
(ग) लंिबत दािं डक काय(cid:30)वािहया,ं य(cid:4)द कोई ह;[
6591 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(घ) कंपनी अिधिनयम, 2013 के अधीन िनदशे क के \प म Gकाय (cid:30)करने संबंधी िनरहत(cid:30) ा, य(cid:4)द कोई ह;ै
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जानबझू कर ;ित@मी के \प म Gपहचान, य(cid:4)द कोई है;
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(ii) ‘संबO ;ि5’ अिभ;ि5 स ेअिभ3ेत ह—ै
(क) ऐसे ;ि5, जो समाधान आवेदक के सं3वत(cid:30)क ह [या उसके 3बधं मंडल या िनयंFण म Gह;[
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संबंिधत प(cid:27)कार ।”
3. मलू िविनयम6 के िविनयम 38 के उप-िविनयम (2) के =थान पर िनAिलिखत उप-िविनयम रखा जाएगा, अथा(cid:30)त:्-
“(2) समाधान वृि4क, सिमित को ऐसी सभी समाधान योजनाएं, जो सिं हता और उसके अधीन बनाए गए िविनयम6
क( अपे(cid:27)ाe का अनुपालन करती ह,[ अपने 2ारा सं3ेि(cid:27)त, पाए गए या िनधा-(cid:30) रत िनAिलिखत सं;वहार6 के, य(cid:4)द
कोई ह,[ िववरण:-
(क) धारा 43 के अधीन अिधमानी सं;वहार;
(ख) धारा 45 के अधीन Jयून मू(cid:6)या(cid:4)ं कत सं;वहार;
(ग) धारा 50 के अधीन उgापक 3hयय स;ं वहार; और
(घ) धारा 66 के अधीन कपटपूण(cid:30) सं;वहार,
और ऐस ेसं;वहार6 क( बाबत Jयायिनण(cid:30)यन 3ािधकारी के आदशे 6 सिहत य(cid:4)द कोई ह,[ 3=तुत करेगा ।
डॉ. नवरंग सैनी, पणू (cid:30)कािलक सद=य
[िवiापन-III/4/असा./301/17]
++++टटटट,,,,पपपपणणणण :::: भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए फा=ट >ैक (cid:4)दवाला समाधान 3(cid:4)@या)
िविनयम, 2017, भारत के राजपF, असाधारण, मG अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./
आर.ई.जी.012, तारीख 14 जनू , 2017 2ारा 3कािशत (cid:4)कए गए थे और उसम GतhपKात्
(1) अिधसूचना स.ं आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.014, तारीख 16 अग=त, 2017 2ारा
3कािशत भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए फा=ट >ैक (cid:4)दवाला
समाधान 3(cid:4)@या) (सशं ोधन) िविनयम, 2017;
(2) अिधसूचना सं. आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.017, तारीख 5 अ5ूबर, 2017 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए फा=ट >ैक (cid:4)दवाला समाधान
3(cid:4)@या) (ि2तीय संशोधन) िविनयम, 2017
2ारा सशं ोधन (cid:4)कए गए थ े।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 7th November, 2017
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (FAST TRACK INSOLVENCY
RESOLUTION PROCESS FOR CORPORATE PERSONS) (THIRD AMENDMENT)
REGULATIONS, 2017
No. IBBI/2017-18/GN/REG020.—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 Insolvency¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
and Bankruptcy Board of India hereby makes the following regulations to amend the Insolvency and
Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations,
2017, namely:—
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Fast Track Insolvency
Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017.
(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 (Fast Track Insolvency Resolution Process for Corporate
Persons) Regulations, 2017 ( hereinafter referred to as the principal regulations), in regulation 37, after
sub-regulation (2), the following sub-regulation shall be inserted, namely:—
“(3) A resolution plan shall contain details of the resolution applicant and other connected persons
to enable the committee to assess the credibility of such applicant and other connected persons to
take a prudent decision while considering the resolution plan for its approval.
Explanation : For the purposes of this sub-regulation,—
(i) ‘details’ shall include the following in respect of the resolution applicant and other
connected persons, namely:—
(a) identity;
(b) conviction for any offence , if any, during the preceding five years;
(c) criminal proceedings pending, if any;
(d) disqualification, if any, under Companies Act, 2013, to act as a director;
(e) identification as a willful defaulter, if any, by any bank or financial institution or
consortium thereof in accordance with the guidelines of the Reserve Bank of India;
(f) debarment, if any, from accessing to, or trading in, securities markets under any order
or directions of the Securities and Exchange Board of India,; and
(g) transactions, if any, with the corporate debtor in the preceding two years.
(ii) the expression ‘connected persons’ means—
(a) persons who are promoters or in the management or control of the resolution
applicant;
(b) persons who will be promoters or in management or control of the business of the
corporate debtor during the implementation of the resolution plan ;
(c) holding company, subsidiary company, associate company and related party of the
persons referred to in items (a) and (b ) .”.
3. In the principal regulations, in regulation 38, for sub-regulation (2), the following sub-regulation shall
be substituted, namely:—
“(2) The resolution professional shall submit to the committee all resolution plans which
comply with the requirements of the Code and regulations made thereunder along with the
details of following transactions, if any, observed, found or determined by him:—
(a) preferential transactions under section 43;
(b) undervalued transactions under section 45;
(c) extortionate credit transactions under section 50; and
(d) fraudulent transactions under section 66,
and the orders, if any, of the adjudicating authority in respect of such transactions.”.
Dr. NAVRANG SAINI, Whole Time Member
[ADVT.-III/4/Exty./301/17]4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
Note : The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for
Corporate Persons) Regulations, 2017 were published in the Gazette of India, Extraordinary, vide
notification No. IBBI/2017-18/GN/REG012 dated the 14th June, 2017 and was subsequently amended
by—
(1) the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for
Corporate Persons) (Amendment) Regulations, 2017 vide notification No. IBBI/2017-
18/GN/REG014 , dated the 16th August, 2017;
(2) the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for
Corporate Persons) (Second Amendment) Regulations, 2017 vide notification No. IBBI/2017-
18/GN/REG017, dated the 5th October, 2017.
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.