## Report on the Insolvency and Bankruptcy Board of India (IBBI) Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2022, based solely on the official gazette notification provided. This amendment focuses on enhancing the information available during the Corporate Insolvency Resolution Process (CIRP) by requiring additional documentation from operational creditors, creditors, and corporate debtors. The changes aim to improve transparency, facilitate more informed decision-making by resolution professionals, and streamline the CIRP. A key aspect of the amendment focuses on processes after the approval of a resolution plan related to avoidance transactions.
**2. Introduction:**
The purpose of this report is to provide an informative overview and analysis of the Insolvency and Bankruptcy Board of India (IBBI) Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2022. This analysis is based exclusively on the content of the provided official gazette notification.
**3. Policy Overview:**
* **Amendment To:** Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Regulations, 2016.
* **Core Objective(s):** Based on the text, the amendments appear to aim to:
* Enhance the availability of information to resolution professionals during the CIRP.
* Increase transparency by requiring specific documentation from operational creditors.
* Clarify the process for handling avoidance transactions post-resolution plan approval.
* Ensure that resolution professionals are supported by all stakeholders in gathering information.
**4. Background and Rationale:**
The amendment likely addresses gaps in information availability and clarity within the existing CIRP framework. The requirement for operational creditors to furnish GST-related documents and e-way bills suggests a need for better verification of claims and transactions. Furthermore, specifying that creditors should provide the latest financial statements and relevant financial information indicates a drive for richer data to be available to resolution professionals. Adding provisions for handling avoidance transactions after resolution plan approval aims to clarify the process and potential benefits of these actions for all stakeholders.
**5. Key Provisions / Changes:**
The following are the key changes introduced by the amendment:
* **Regulation 2B (New): Record or evidence of transaction, debt and default by operational creditor:** Requires operational creditors applying under Section 9 to furnish copies of relevant extracts of Form GSTR1 and Form GSTR3B and e-way bills. Exempts operational creditors and goods/services not covered under GST laws.
* **Effect:** Provides additional documentation to support operational creditor claims, improving verification and potentially reducing frivolous applications.
* **Regulation 2C (New): Submission of information along with application:** Requires financial creditors and operational creditors filing application under Section 7 or 9 to furnish details of Permanent Account Number (PAN) and Email ID.
* **Effect:** Improves tracking and identification of creditors for communication and verification purposes.
* **Regulation 4 (Amendment):** Mandates that corporate debtors, their promoters, and associated personnel provide information requested by the interim resolution professional (IRP) or resolution professional (RP). It also requires creditors to furnish information regarding assets and liabilities of the corporate debtor from the last valuation report, stock statement, receivables statement, inspection reports of properties, audit report, stock audit report, title search report, technical officers report, bank account statement and such other information which shall assist the interim resolution professional or the resolution professional in preparing the information memorandum, getting valuation determined and in conducting the corporate insolvency resolution process.
* **Effect:** Places a clear obligation on the debtor's management and creditors to cooperate with the IRP/RP by providing necessary data, enabling a more efficient resolution process.
* **Regulation 7 (Amendment):** Requires copies of relevant extracts of Form GSTR1 and Form GSTR3B filed under the provisions of the relevant laws relating to Goods and Services Tax and the copy of eway bill wherever applicable
* **Effect:** Provides additional documentation to support claims, improving verification and potentially reducing frivolous applications.
* **Regulation 35 (Amendment):** Modifies the process for appointing a third registered valuer if the two initial estimates of asset value differ significantly. Defines 'significantly different' as a 25% difference in liquidation value.
* **Effect:** Provides a more objective criteria for determining when a third valuation is necessary, potentially reducing disputes and ensuring a more accurate assessment of asset value.
* **Regulation 35A (Amendment):** Requires creditors to provide the resolution professional, relevant extract from the audits of the corporate debtor, conducted by the creditors such as stock audit, transaction audit, forensic audit, etc.
* **Effect:** Provides a wider range of information from creditors to resolution professional, further strengthening the amount of information available.
* **Regulation 36 (Amendment):** Requires creditors to provide to the resolution professional the latest financial statements and other relevant financial information of the corporate debtor available with them.
* **Effect:** Improves the depth of information available to the resolution professional for the purpose of understanding the debtors financial position.
* **Regulation 38 (Amendment):** Requires resolution plans to specify how avoidance transactions will be pursued after approval, and how proceeds will be distributed. This doesn't apply to plans submitted to the Adjudicating Authority before the amendment's commencement.
* **Effect:** Creates a clearer framework for handling avoidance transactions post-resolution plan approval, enhancing transparency and potentially increasing recoveries for creditors.
**6. Target Audience and Stakeholders:**
Based on the provided text, the directly affected stakeholders include:
* Operational creditors applying for CIRP under Section 9.
* Financial Creditors applying for CIRP under Section 7.
* Corporate debtors, their promoters, and associated personnel.
* Resolution Professionals (RPs) and Interim Resolution Professionals (IRPs).
* Creditors in general, specifically those holding information relevant to the corporate debtor's assets, liabilities, and financial condition.
* Committee of Creditors (CoC).
**7. Implementation Aspects (Inferred):**
* **Responsible agency:** The Insolvency and Bankruptcy Board of India (IBBI) is the responsible regulatory body.
* **Timelines:** The amendment came into force on the date of its publication in the Official Gazette (June 14, 2022).
* **Procedures:** The amendment implies changes in the application process for operational and financial creditors, requiring them to furnish additional documentation. RPs/IRPs will need to proactively request and manage the increased volume of information. The Adjudicating Authority is mentioned in relation to resolution plans already submitted before the commencement date.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these amendments include:
* **Increased Transparency:** The requirement for GST-related documents and financial information should improve the transparency of transactions and claims.
* **More Informed Decision-Making:** Enhanced information availability will enable RPs/IRPs and the CoC to make more informed decisions regarding the resolution process.
* **Streamlined CIRP:** Clearer responsibilities for information provision and a defined process for avoidance transactions are expected to streamline the CIRP.
* **Potentially Higher Recoveries:** Clarifying the handling of avoidance transactions post-resolution plan approval could lead to increased recoveries for creditors.
**9. Conclusion:**
The Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2022, represent a significant step towards improving the efficiency and transparency of the CIRP. By mandating increased information sharing and clarifying processes, particularly in relation to avoidance transactions, the amendments aim to enhance the overall effectiveness of the insolvency resolution framework. These changes are expected to have a positive impact on both creditors and debtors by promoting a more transparent and informed process.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: A regulatory body in India overseeing insolvency proceedings.
Insolvency and Bankruptcy Code, 2016: A law in India related to insolvency and bankruptcy.
Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2022: Regulations amending the insolvency resolution process for corporate entities.
Official Gazette: A publication containing official notifications and legal announcements.
Form GSTR1: A form related to Goods and Services Tax returns.
Form GSTR3B: A form related to Goods and Services Tax returns.
Goods and Services Tax: An indirect tax for domestic consumption.
Permanent Account Number: A unique identification number for taxpayers in India.
Companies Registered Valuers and Valuation Rules, 2017: Rules pertaining to registered valuers and valuation processes.
Ravi Mital: Chairperson of Insolvency and Bankruptcy Board of India.
Insolvency Resolution Process for Corporate Persons Regulations, 2016: Regulations related to the insolvency resolution process for corporate entities.
Insolvency Resolution Process for Corporate Persons Amendment Regulations, 2022: Amendment regulations to the Insolvency Resolution Process for Corporate Persons Regulations.
New Delhi: The location of notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एलxx.x-GअID.-E1x5x0x 62022-236586
CG-DL-E-15062022-236586
ऄसाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 302] नइ ददल्ली, मगं लवार, िनू 14, 2022/ज्य ष्े ि 24, 1944
No. 302] NEW DELHI TUESDAY, JUNE 14, 2022/JYAISTHA 24, 1944
भारतीय ददवाला और िोधन ऄक्षमता बोड ड
ऄजधसचू ना
नइ ददल्ली, 14 िून, 2022
भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) (दसू रा सिं ोधन)
जवजनयम, 2022
स.ं अइ.बी.बी.अइ./2022-23/िी.एन./अर.इ.िी.084.—भारतीय ददवाला और िोधन ऄक्षमता बोड,ड ददवाला
और िोधन ऄक्षमता संजहता, 2016 (2016 का 31) की धारा 7, धारा 9 और 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 (कारपोरेट
व्यजियों के जलए ददवाला समाधान प्रदिया) जवजनयमन, 2016 का और संिोधन करने के जलए जनम्नजलजखत जवजनयम
बनाता ह,ै ऄथाडत:्—
1. (1) आन जवजनयमों का संजक्षप्त नाम भारतीय ददवाला और िोधन ऄक्षमता बोड ड (कारपोरेट व्यजियों के जलए
ददवाला समाधान प्रदिया) (दसू रा संिोधन) जवजनयम, 2022 ह ै।
(2) य ेरािपत्र म ेंप्रकािन की तारीख को प्रवृत्त होंग े ।
2. भारतीय ददवाला और िोधन ऄक्षमता बोड ड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) जवजनयमन,
2016 (जिन्ह ें आसम ें आसके पश्चात् ‘मूल जवजनयम’ कहा गया ह)ै म,ें जवजनयम 2क के पश्चात् जनम्नजलजखत जवजनयम
ऄंतःस्ट्थाजपत दकए िाएगं ,े ऄथातड ्;—
4027 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“2ख. प्रचालन लने दार द्वारा सव्यं वहार, ऋण और व्यजतिम (चकू ) का ऄजभलखे या साक्ष्य—प्रचालन लेनदार,
धारा 9 के ऄधीन अवेदन के साथ, माल और सेवा-कर से संबंजधत सुसंगत जवजधयों के ईपबंधों के ऄधीन फाआल दकए
गए प्ररूप िी.एस.टी.अर.-1 और प्ररूप िी.एस.टी.अर.-3बी के सुसंगत ईद्धरणों की प्रजतयां और, िहां कहीं भी
लाग ू हो, इ-वे जबल की प्रजत दगे ा:
परन्त ु आस जवजनयम के ईपबंध ईन प्रचालन लेनदारों को, जिनके जलए रजिस्ट्रीकरण की ऄपक्षे ा नहीं ह ै और ईन
माल और सेवाओं को, िो माल और सेवा-कर स े संबंजधत दकसी जवजध के ऄतं गतड नहीं अती ह,ैं लाग ू नहीं होंग े ।
2ग. अवदे न के साथ िानकारी का प्रस्ट्ततु दकया िाना—जवत्तीय लेनदार या प्रचालन लेनदार, यथाजस्ट्थजत,
धारा 7 या धारा 9 के ऄधीन अवेदन फाआल करत े समय, ऄपने –
(क) स्ट्थायी खाता संखयांक; और
(ख) इमले -अइ.डी.
के ब्यौरे भी प्रस्ट्ततु करेगा ।”
3. मूल जवजनयमों के जवजनयम 4 म,ें ईप-जवजनयम (1) के पश्चात्, जनम्नजलजखत ईप-जवजनयम ऄतं ःस्ट्थाजपत दकए िाएगं ,े
ऄथाडत:् —
“(2) कारपोरेट ऋणी के कार्ममक, ईसके संप्रवतडक या कारपोरेट ऋणी के प्रबंधतंत्र से सहबद्ध कोइ ऄन्य व्यजि, यह
िानकारी ऐसे समय के भीतर और ऐसे प्ररूप म ें प्रदान करेगा, िैसा दक, यथाजस्ट्थजत, ऄंतठरम समाधान व्यावसाजयक
या समाधान व्यावजस्ट्यक द्वारा इप्सा की िाए ।
(3) लने दार, यथाजस्ट्थजत ऄंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक को ऄंजतम मूल्यांकन ठरपोट ड स े
कारपोरेट ऋणी की अजस्ट्तयों और ईसके दाजयत्वों की बाबत िानकारी, स्ट्टॉक जववरणी, प्राप्य संबंधी जववरणी,
संपजत्तयों की जनरीक्षण ठरपोटों, लेखापरीक्षा ठरपोट,ड स्ट्टॉक लेखापरीक्षा ठरपोट,ड हक िांच ठरपोट,ड तकनीकी
ऄजधकाठरयों की ठरपोट,ड बैंक खाता जववरणी और ऐसी ऄन्य िानकारी प्रदान करेगा, िो ऄंतठरम समाधान
व्यावसाजयक या समाधान व्यावसाजयक के जलए सूचना ज्ञापन तैयार करन,े मूल्यांकन का ऄवधारण कराने या
कारपोरेट ददवाला समाधान प्रदिया का संचालन करने म ें सहायक होगी ।”
4. मूल जवजनयमों के जवजनयम 7 के ईप-जवजनयम (2) के खंड (ख) म,ें ईपखंड (iv) के पश्चात,् जनम्नजलजखत ईपखंड
ऄंतःस्ट्थाजपत दकया िाएगा, ऄथाडत:् —
“(v) माल और सेवा-कर स े संबंजधत सुसंगत जवजधयों के ईपबंधों के ऄधीन फाआल दकए गए प्ररूप िी.एस.टी.अर.-1
और प्ररूप िी.एस.टी.अर.-3बी के ईद्धरणों की प्रजतयां और, िहां कहीं भी लाग ू हो, इ-वे जबल की प्रजत:
परन्त ु आस जवजनयम के ईपबंध ईन लने दारों को, जिनके जलए रजिस्ट्रीकरण की ऄपेक्षा नहीं ह ै और ईन माल और
सेवाओं को, िो माल और सेवा-कर स े संबंजधत दकसी जवजध के ऄंतगतड नहीं अती ह,ैं लाग ू नहीं होंगे ।”
5. मूल जवजनयमों के जवजनयम 35 के ईप-जवजनयम (1) म,ें खंड (ख) के स्ट्थान पर, जनम्नजलजखत खंड रखा िाएगा,
ऄथाडत:् —
“(ख) यदद दकसी अजस्ट्त वगड म ें दकसी मूल्य के दो प्राक्कलन महत्वपूणड रूप स े जभन्न ह ैं या लने दारों की सजमजत की
ओर स े तीसरा रजिस्ट्रीकृत मल्ू यांकक जनयुि करने का प्रस्ट्ताव प्राप्त होने पर, समाधान व्यावसाजयक, खंड (क) म ें
ईपबंजधत रीजत म ें सगं जणत मल्ू य का प्राक्कलन प्रस्ट्तुत करन े के जलए दकसी अजस्ट्त वग ड के जलए तीसरा रजिस्ट्रीकृत
मूल्यांकक जनयुि कर सकेगा ।[भाग III—खण् ड 4] भारत का रािपत्र : ऄसाधारण 3
स्ट्पष्टीकरण: खंड (ख) के प्रयोिनाथ,ड
(i) “अजस्ट्त वग”ड से कंपनी (रजिस्ट्रीकृत मूल्यांकक और मल्ू यांकन) जनयम, 2017 के ऄधीन ईपबंजधत पठरभाषा
ऄजभप्रेत ह;ै
(ii) “महत्वपूणड रूप स े जभन्न” स,े दकसी अजस्ट्त वग ड के ऄधीन पठरसमापन मूल्य म ें पच्चीस प्रजतित का ऄतं र
ऄजभप्रेत ह ैऔर ईसकी संगणना (एल.1 – एल.2)/एल.-1 के रूप म ें की िाएगी, िहां,
एल.-1 = पठरसमापन मल्ू य का ईच्चतर मूल्यांकन
एल.-2 = पठरसमापन मल्ू य का जनम्नतर मूल्यांकन ।”
6. मूल जवजनयमों के जवजनयम 35क म,ें ईप-जवजनयम (3) के पश्चात,् जनम्नजलजखत ईप-जवजनयम ऄंतःस्ट्थाजपत दकया
िाएगा, ऄथाडत:् —
“(4) लेनदार, समाधान व्यावसाजयक को, ऐसी कोइ िानकारी प्रदान करेगा, िो लने दारों द्वारा की गईं कारपोरेट
ऋणी की लेखा-परीक्षाओं, िैसे स्ट्टॉक लेखापरीक्षा, संव्यवहार लेखापरीक्षा, न्यायालजयक लेखापरीक्षा, अदद स े
ईपलब्ध हो सकेगी ।”
7. मूल जवजनयमों के जवजनयम 36 म,ें ईप-जवजनयम (3) के पश्चात,् जनम्नजलजखत ईप-जवजनयम ऄतं ःस्ट्थाजपत दकया
िाएगा, ऄथाडत:् —
“(3क) लने दार, समाधान व्यावसाजयक को, ईनके पास ईपलब्ध कारपोरेट ऋणी की ऄद्यतन जवत्तीय जववरजणयां
और ऄन्य सुसंगत जवत्तीय िानकारी प्रदान करेंगे।”
8. मूल जवजनयमों के जवजनयम 38 म,ें ईप-जवजनयम (2) म,ें खंड (ग) के पश्चात,् जनम्नजलजखत खडं ऄंतःस्ट्थाजपत दकया
िाएगा, ऄथाडत:् —
“(घ) ईस रीजत के जलए, जिसम ें संजहता के भाग 2 के ऄध्याय 3 के ऄधीन ऄपठरविडनीय संव्यवहारों, यदद कोइ ह ैं
या ऄध्याय 6 के ऄधीन कपटपूणड या सदोष व्यापार की बाबत कायडवाजहयों का समाधान योिना के ऄनुमोदन के
पश्चात ् पठरिीलन दकया िाएगा और ईस रीजत के जलए, जिसम ें ऐसी कायडवाजहयों स े हुए अगमों को, यदद कोइ ह,ैं
जवतठरत दकया िाएगा, ईपबंध:
परन्त ु यह खडं ऐसी दकसी समाधान योिना को लाग ू नहीं होगा, िो धारा 30 की ईपधारा (6) के ऄधीन
न्यायजनणाडयक प्राजधकारी को भारतीय ददवाला और िोधन ऄक्षमता बोड ड (कारपोरेट व्यजियों के जलए ददवाला
समाधान प्रदिया) (दसू रा संिोधन) जवजनयम, 2022 के प्रारंभ की तारीख को या ईसके पूवड प्रस्ट्तुत की गइ ह।ै ”
रजव जमत्तल, ऄध् यक्ष,
[जवज्ञापन III/4/ऄसा./121/2022-23]
ठटप्पण: भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) जवजनयमन,
2016, भारत के रािपत्र, ऄसाधारण, भाग III—खण् ड IV स.ं 432, तारीख 30 नवम्बर, 2016 म ेंऄजधसूचना
स.ं अइ.बी.बी.अइ./2016-17/िी.एन./अर.इ.िी.004, तारीख 30 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थ े और
ईनम ें ऄजं तम संिोधन भारत के रािपत्र, ऄसाधारण, भाग III, खंड 4, स.ं 82, तारीख 9 फरवरी, 2022 म,ें
ऄजधसूचना स.ं अइ.बी.बी.अइ./2021-22/िी.एन./अर.इ.िी.080, तारीख 9 फरवरी, 2022 द्वारा प्रकाजित
भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) (संिोधन)
जवजनयम, 2022 द्वारा दकया गया था ।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 14th June, 2022
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second
Amendment) Regulations, 2022
No. IBBI/2022-23/GN/REG084.— In exercise of the powers conferred by clause (t) of sub- section (1) of
section 196 read with sections 7, 9 and 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) (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 (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 (hereinafter referred to as „the principal regulations‟), after regulation 2A, the following regulations
shall be inserted, namely:—
“2B. Record or evidence of transaction, debt and default by operational creditor.
The operational creditor shall, alongwith application under section 9, furnish copies of relevant extracts of
Form GSTR-1 and Form GSTR-3B filed under the provisions of the relevant laws relating to Goods and
Services Tax and the copy of e-way bill wherever applicable:
Provided that provisions of this regulation shall not apply to those operational creditors who do not
require registration and to those goods and services which are not covered under any law relating to Goods
and Services Tax.
2C. Submission of information along with application.
The financial creditor or operational creditor shall, while filing application under section 7 or 9, as the case
may be, also furnish details of his/ its—
(a) Permanent Account Number; and
(b) Email-ID.”
3. In the principal regulations, in regulation 4, after sub-regulation (1), the following sub-regulations shall be inserted,
namely:—
“(2) The personnel of the corporate debtor, its promoters or any other person associated with the management
of the corporate debtor shall provide the information within such time and in such format as sought by the
interim resolution professional or the resolution professional, as the case may be.
(3) The creditor shall provide to the interim resolution professional or resolution professional, as the case
may be, the information in respect of assets and liabilities of the corporate debtor from the last valuation
report, stock statement, receivables statement, inspection reports of properties, audit report, stock audit
report, title search report, technical officers report, bank account statement and such other information which
shall assist the interim resolution professional or the resolution professional in preparing the information
memorandum, getting valuation determined and in conducting the corporate insolvency resolution process.”
4. In the principal regulations, in regulation 7, in sub-regulation (2), in clause (b), after sub- clause (iv), the following
sub-clause shall be inserted, namely:—
“(v) copies of relevant extracts of Form GSTR-1 and Form GSTR-3B filed under the provisions of the
relevant laws relating to Goods and Services Tax and the copy of e-way bill wherever applicable:
Provided that provisions of this sub-clause shall not apply to those creditors who do not require
registration and to those goods and services which are not covered under any law relating to Goods and
Services Tax.”
5. In the principal regulations, in regulation 35, in sub-regulation (1), for clause (b), the following clause shall be
substituted:—
“(b) if the two estimates of a value in an asset class are significantly different, or on receipt of a proposal to
appoint a third registered valuer from the committee of creditors, the resolution professional may appoint a[भाग III—खण् ड 4] भारत का रािपत्र : ऄसाधारण 5
third registered valuer for an asset class for submitting an estimate of the value computed in the manner
provided in clause (a).
Explanation.- For the purpose of clause (b),
(i) “asset class” means the definition provided under the Companies (Registered Valuers and Valuation)
Rules, 2017;
(ii) “significantly different” means a difference of twenty-five per cent. in liquidation value under an asset
class and the same shall be calculated as (L1-L2)/L1, where,
L1= higher valuation of liquidation value
L2= lower valuation of liquidation value.”
6. In the principal regulations, in regulation 35A, after sub-regulation (3), the following sub- regulation shall be
inserted, namely:—
“(4) The creditors shall provide to the resolution professional, relevant extract from the audits of the
corporate debtor, conducted by the creditors such as stock audit, transaction audit, forensic audit, etc.”
7. In the principal regulations, in regulation 36, after sub-regulation (3), the following sub- regulation shall be inserted,
namely:—
“(3A) The creditors shall provide to the resolution professional the latest financial statements and other
relevant financial information of the corporate debtor available with them.”
8. In the principal regulations, in regulation 38, in sub-regulation (2), after clause (c), the following clause shall be
inserted, namely:—
“(d) provides for the manner in which proceedings in respect of avoidance transactions, if any, under Chapter
III or fraudulent or wrongful trading under Chapter VI of Part II of the Code, will be pursued after the
approval of the resolution plan and the manner in which the proceeds, if any, from such proceedings shall be
distributed:
Provided that this clause shall not apply to any resolution plan that has been submitted to the
Adjudicating Authority under sub-section (6) of section 30 on or before the date of commencement of the
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second
Amendment) Regulations, 2022.”
RAVI MITAL, Chairperson,
[ADVT.-III/4/Exty./121/2022-23]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG004, dated 30th November,
2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last
amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate
Persons) (Amendment) Regulations, 2022 published vide notification No. IBBI/2021-22/GN/REG080, dated
the 9th February, 2022 in the Gazette of India, Extraordinary, Part III, Section 4, No. 82 on 9th February, 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.