Executive Summary:
This document contains the Insolvency and Bankruptcy Board of India (IBBI) Third Amendment Regulations of 2017 regarding the Insolvency Resolution Process for Corporate Persons. It amends the 2016 regulations, effective upon publication in the Official Gazette on November 7, 2017. The amendments pertain to the details required in a resolution plan and the submission of such plans to the committee.
Key Points / Main Content:
* **Amendment Title:** Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Third Amendment Regulations, 2017.
* **Effective Date:** November 7, 2017 (date of publication in the Official Gazette).
* **Amends:** Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Regulations, 2016.
**Resolution Plan Details (Regulation 38 Amendment):**
* A resolution plan must include details of the resolution applicant and other connected persons.
* This is to enable the committee to assess the credibility of the applicant and connected persons.
* Details to be included:
* Identity
* Convictions for offences in the preceding five years
* Pending criminal proceedings
* Disqualifications under the Companies Act, 2013
* Identification as a willful defaulter by banks or financial institutions
* Debarment from securities markets by SEBI
* 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's business during the plan's implementation.
* Holding, subsidiary, associate companies, and related parties of the above.
**Submission of Resolution Plans (Regulation 39 Amendment):**
* The resolution professional must submit all compliant resolution plans to the committee.
* The submission must include details of the following transactions, if observed, found, or determined by the resolution professional:
* Preferential transactions under section 43
* Undervalued transactions under section 45
* Extortionate credit transactions under section 50
* Fraudulent transactions under section 66
* Any orders of the adjudicating authority regarding such transactions must also be included.
Impact Analysis:
* **Resolution Applicants and Connected Persons:**
* *Impact:* Increased transparency requirements regarding identity, legal history, and financial dealings.
* *Action Required:* Provide all required details in the resolution plan to enable the committee's assessment.
* **Resolution Professionals:**
* *Impact:* Expanded due diligence and reporting responsibilities regarding transactions potentially impacting the corporate debtor.
* *Action Required:* Identify and report details of preferential, undervalued, extortionate, and fraudulent transactions to the committee.
* **Committee of Creditors:**
* *Impact:* Enhanced information for evaluating resolution plans and making informed decisions.
* *Action Required:* Carefully assess the credibility of resolution applicants and connected persons based on the provided details.
* **Insolvency and Bankruptcy Board of India:**
* *Impact:* Overseeing and enforcing the amended regulations to ensure a transparent and credible resolution process.
* *Action Required:* Monitor compliance with the new regulations and take appropriate action as needed.
Key Entities Referenced
New Delhi: The location where the notification was issued. New Delhi, Delhi, India
Insolvency and Bankruptcy Board of India (IBBI): A regulatory body in India that oversees insolvency proceedings and regulates insolvency professionals.
Insolvency and Bankruptcy Code, 2016: An Indian law 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 Resolution Process for Corporate Persons Regulations, 2016: Regulations established by the IBBI to govern the process of insolvency resolution for corporate entities.
Companies Act, 2013: An Act of the Parliament of India on Indian company law which governs corporate affairs. Mentioned in the context of disqualification of a director.
Reserve Bank of India (RBI): The central bank of India. Its guidelines are referenced in the context of identifying willful defaulters.
Securities and Exchange Board of India (SEBI): The regulator of the securities market in India. Its orders can lead to debarment from accessing securities markets.
Dr. Navrang Saini: Whole Time Member of Insolvency and Bankruptcy Board of India.
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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. 432] NEW DELHI, TUESDAY, NOVEMBER 7, 2017/KARTIKA 16, 1939
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और शोधन अ(cid:27)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:27)मता बोड (cid:30) (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:30)त:्—
1. (1) इन िविनयम6 का सिं (cid:27)A नाम भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड((cid:30) कारपोरेट ;ि5य6 के िलए (cid:4)दवाला
समाधान 3(cid:4)<या) (तीसरा संशोधन) िविनयम, 2017 ह ै।
(2) य ेराजपD मE 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 (cid:4)दवाला समाधान 3(cid:4)<या) िविनयम, 2016
(िजGह E इसम E इसके पHात् मूल िविनयम कहा गया ह)ै के िविनयम 38 के उप-िविनयम (2) के पHात् िन=िलिखत उप-
िविनयम अंतःLथािपत (cid:4)कया जाएगा, अथा(cid:30)त:्—
“(3) (cid:4)कसी समाधान योजना म,E समाधान आवेदक और अGय संबN ;ि5 क( जानकारी का िववरण अतं PवQ
होगा, िजससे (cid:4)क सिमित समाधान योजना पर अपन ेअनमु ोदन के िलए िवचार करत ेसमय िववेकपूण (cid:30)िविनHय
करने के िलए ऐसे आवेदक और अGय संबN ;ि5 क( िवUसनीयता का िनधा(cid:30)रण करने म Eसमथ(cid:30) हो सके ।
&&&&पपपप''''ीीीीककककररररणणणण:::: इस उप-िविनयम के 3योजन6 के िलए,—
(i) “िववरण” के अंतग(cid:30)त समाधान आवेदक और अGय संबN ;ि5 क( बाबत िन=िलिखत शािमल होगा,
अथा(cid:30)त ्:—
(क) पहचान;
(ख) िपछल ेपांच वषX के दौरान (cid:4)कसी अपराध के िलए दोषिसिN, य(cid:4)द कोई ह;ै
(ग) लंिबत दािं डक काय(cid:30)वािहया,ं य(cid:4)द कोई ह;Z
(घ) कंपनी अिधिनयम, 2013 के अधीन िनदशे क के [प म Eकाय (cid:30)करने संबंधी िनरहत(cid:30) ा, य(cid:4)द कोई ह;ै
6592 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(ङ) भारतीय -रज़व (cid:30) बZक के (cid:4)दशािनदश] 6 के अनुसार (cid:4)कसी बZक या िव4ीय संLथा या उनके सघं 2ारा
जानबझू कर ;ित<मी के [प म Eपहचान, य(cid:4)द कोई है;
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संबंिधत प(cid:27)कार ।”
3333. मलू िविनयम6 के िविनयम 39 के उप-िविनयम (2) के Lथान पर िन=िलिखत 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)ाc का अनुपालन करती ह,Z अपने 2ारा सं3ेि(cid:27)त, पाए गए या िनधा-(cid:30) रत िन=िलिखत सं;वहार6 के, य(cid:4)द
कोई ह,Z िववरण:—
(क) धारा 43 के अधीन अिधमानी सं;वहार;
(ख) धारा 45 के अधीन Gयून मू(cid:6)या(cid:4)ं कत स;ं वहार;
(ग) धारा 50 के अधीन उeापक 3fयय स;ं वहार; और
(घ) धारा 66 के अधीन कपटपूण(cid:30) सं;वहार,
और ऐस ेसं;वहार6 क( बाबत Gयायिनण(cid:30)यन 3ािधकारी के आदशे 6 सिहत य(cid:4)द कोई ह,Z 3Lतुत करेगा ।
डॉ. नवरंग सैनी, पणू (cid:30)कािलक सदLय
[िवgापन-III/4/असा./300/17]
))))टटटट****पपपपणणणण:::: भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) िविनयम,
2016, भारत के राजपD, असाधारण, मE अिधसूचना सं. आई.बी.बी.आई./2016-17/जी.एन./आर.ई.जी.004,
तारीख 30 नव(cid:11)बर, 2016 2ारा 3कािशत (cid:4)कए गए थ ेऔर उसमE तfपHात्
(1) अिधसूचना सं. 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:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए (cid:4)दवाला समाधान 3(cid:4)<या) (संशोधन)
िविनयम, 2017;
(2) अिधसूचना सं. आई.बी.बी.आई./2017-18/जी.एन./आर.ई.जी.018, तारीख 5 अ5ूबर, 2017 2ारा 3कािशत
भारतीय (cid:4)दवाला और शोधन अ(cid:27)मता बोड (cid:30) (कारपोरेट ;ि5य6 के िलए (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 (INSOLVENCY RESOLUTION PROCESS
FOR CORPORATE PERSONS) (THIRD AMENDMENT) REGULATIONS, 2017
No. IBBI/2017-18/GN/REG019.—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 to amend the Insolvency and
Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016,
namely:—¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (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 (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 ( hereinafter referred to as the principal regulations), in regulation 38, 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
person, 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 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 39, 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./300/17]4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
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 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. No. IBBI/2017-
18/GN/REG018, 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.