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Date: 31-Jan-2024 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by clause t of sub section 1 of section 196, section 240 read with clause e of section 2 of the Insolvency and Bankruptcy Code

Issued by Insolvency and Bankruptcy Board of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The gazette notification introduces the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024. These regulations amend the 2019 regulations concerning the insolvency resolution process for personal guarantors to corporate debtors.

Key Changes

  • Regulation 4 of the principal regulations (2019) is amended. Specifically, in sub-regulation (1), in Explanation, in clause (i):
  • The word 'and' is inserted after 'guarantor;' in sub-clause (a).
  • The mark ';' is replaced with '.' in sub-clause (b).
  • Sub-clause (c) is omitted.
  • A new regulation 17A is inserted, mandating a meeting of creditors:
  • The resolution professional must present the repayment plan under section 105 in a meeting of creditors for consideration.
  • If no repayment plan is received within the period stipulated under section 106, the resolution professional must notify the creditors in a meeting.

Impact Analysis

Personal Guarantors

  • The introduction of Regulation 17A ensures that creditors are formally involved in considering the repayment plan or are notified if no plan is received, increasing transparency and creditor participation.

Creditors

  • Creditors will be informed if no repayment plan is received within the stipulated timeframe, allowing them to strategize accordingly.

Resolution Professionals

  • Resolution professionals need to ensure compliance with sections 105 and 106 of the Insolvency and Bankruptcy Code, 2016, regarding the repayment plan.

Corporate Debtors

  • The amendments indirectly impact corporate debtors by influencing the resolution process of their personal guarantors, potentially affecting the recovery of debts.

Action Items

  • Personal guarantors should be aware of the timelines and procedures related to the repayment plan and creditor meetings.

Key Entities Referenced

Insolvency and Bankruptcy Code, 2016: The principal legislation governing insolvency and bankruptcy proceedings in India. Insolvency and Bankruptcy Board of India (IBBI): The regulatory body that issued the amendment regulations. Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019: The original regulations that are being amended by this notification. Section 105 of the Insolvency and Bankruptcy Code, 2016: Relates to the repayment plan. Section 106 of the Insolvency and Bankruptcy Code, 2016: Relates to the period within which a repayment plan needs to be submitted.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-01022024-251689 xxxGIDHxxx CG-DL-E-01022024-251689 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 71] नई दिल्ली, बुधवार, िनवरी 31, 2024/माघ 11, 1945 No. 71] NEW DELHI, WEDNESDAY, JANUARY 31, 2024/MAGHA 11, 1945 भारतीय दिवाला और िोधन अक्षमता बोड ड अजधसचू ना नई दिल्ली, 31 िनवरी, 2024 भारतीय दिवाला और िोधन अक्षमता बोडड (जनगजमत ऋजणयों के व्यजिगत प्रत्याभजू तिाताओं के जलए दिवाला समाधान प्रदिया) (सिं ोधन) जवजनयम, 2024 स.ं आई.बी.बी.आई./2023-24/िी.एन./आर.ई.िी.107.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 2 के खंड (ङ) के साथ पठित धारा 196 की उपधारा (1) के खंड (न) तथा धारा 240 द्वारा प्रित्त िजियों का प्रयोग करते हुए, भारतीय दिवाला और िोधन अक्षमता बोडड (जनगजमत ऋजणयों के व्यजिगत प्रत्याभूजतिाताओं के जलए दिवाला समाधान प्रदिया) जवजनयम, 2019 में संिोधन करन े के जलए जनम्नजलजखत जवजनयम बनाता ि,ै अथाडत:्- 1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोडड (जनगजमत ऋजणयों के व्यजिगत प्रत्याभूजतिाताओं के जलए दिवाला समाधान प्रदिया) (संिोधन) जवजनयम, 2024 ि ै। (2) य ेरािपत्र में प्रकािन की तारीख को प्रवृत्त िोंग े। 2. भारतीय दिवाला और िोधन अक्षमता बोड ड (जनगजमत ऋजणयों के व्यजिगत प्रत्याभूजतिाताओं के जलए दिवाला समाधान प्रदिया) जवजनयम, 2019 (जिन्ि ें इसमें इसके पश्चात ् ‘मूल जवजनयम’ किा गया ि)ै के जवजनयम 4 के उप-जवजनयम (1) के स्ट्पष्टीकरण के खडं (i) म,ें (i) उप-खंड (क) म,ें “सियोगी निीं ि;ै ” िब्िों और जचह्न के पश्चात् “और” िब्ि अतं ःस्ट्थाजपत दकया िाएगा । 636 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] (ii) उप-खंड (ख) में, “;” जचह्न के स्ट्थान पर “।“ जचह्न रखा िाएगा । (iii) उप-खंड (ग) का लोप दकया िाएगा । 3. मूल जवजनयमों में, जवजनयम 17 के पश्चात,् जनम्नजलजखत अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:- “17क. लने िारों की बिै क समाधान व्यावसाजयक, धारा 105 में यथा-उजल्लजखत प्रजतिाय योिना, लेनिारों की एक बैिक में उसके जवचाराथड रखेगा । परन्त ु ििां धारा 106 के अधीन यथा-जनयत ऐसी अवजध के भीतर कोई प्रजतिाय योिना प्राप्त निीं हुई ि ै विां समाधान व्यावसाजयक उसे लेनिारों की एक बैिक म ेंअजधसूजचत करेगा ।” रजव जमत्तल, अध्यक्ष [जवज्ञापन-III/4/असा./725/2023-24] ठिप्पण: भारतीय दिवाला और िोधन अक्षमता बोड ड (जनगजमत ऋजणयों के व्यजिगत प्रत्याभूजतिाताओं के जलए दिवाला समाधान प्रदिया) जवजनयम, 2019, भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 413, तारीख 20 नवम्बर, 2019 में अजधसूचना सं. आई.बी.बी.आई./2019-20/िी.एन./आर.ई.िी.050, तारीख 20 नवम्बर, 2019 द्वारा प्रकाजित दकए गए थे । INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 31st January, 2024 Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024 No. IBBI/2023-24/GN/REG107.—In exercise of the powers conferred by clause (t) of sub-section (1) of section 196, section 240 read with clause (e) of section 2 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, namely: - 1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024. (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 Personal Guarantors to Corporate Debtors) Regulations, 2019 (hereinafter referred to as ‘the principal regulations’), in regulation 4, in sub-regulation (1), in Explanation, in clause (i), (i) in sub-clause (a), after the word and mark “guarantor;”, the word “and” shall be inserted. (ii) in sub-clause (b), for the mark and word “; and”, the mark “.” shall be substituted. (iii) sub-clause (c) shall be omitted. 3. In the principal regulations, after regulation 17, the following shall be inserted namely: - “17A. Meeting of the creditors. The resolution professional shall place the repayment plan as mentioned under section 105 in a meeting of the creditors for its consideration. Provided that where no repayment plan has been received within such period as stipulated under section 106, the resolution professional shall notify the same in a meeting of creditors.” RAVI MITAL, Chairperson [ADVT.-III/4/Exty./725/2023-24] Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 were published vide Notification No. IBBI/2019-20/GN/REG050, dated 20th November, 2019 in the Gazette of India, Extraordinary, Part III, Section 4, No. 413 on 20th November, 2019 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.

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