Date: 2022-09-13Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by clauses aa and 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
## 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 Third Amendment Regulations, 2022, as published on September 13, 2022. This amendment primarily focuses on regulating the fee structure for Interim Resolution Professionals (IRPs) and Resolution Professionals (RPs) during the Corporate Insolvency Resolution Process (CIRP). It introduces a minimum fixed fee based on the quantum of claims admitted and provides for performance-linked incentive fees for timely resolution and value maximization. The amendment aims to standardize and incentivize efficient and effective resolution processes.
**2. Introduction:**
This report aims to provide a comprehensive overview of the IBBI's Insolvency Resolution Process for Corporate Persons Third Amendment Regulations, 2022. The analysis is based solely on the provided policy text and focuses on the key changes introduced by this amendment.
**3. Policy Overview:**
This document is an amendment to the Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Regulations, 2016.
The core objective of this amendment, as inferred from the text, is to:
* Establish a structured framework for determining the fees of IRPs and RPs.
* Incentivize timely resolution and value maximization during the CIRP.
**4. Background and Rationale:**
This amendment likely aims to address inconsistencies or perceived inadequacies in the existing fee structure for IRPs and RPs. By introducing minimum fixed fees and performance-linked incentives, the amendment aims to:
* Provide more certainty and transparency in determining the fees for IRPs and RPs.
* Motivate IRPs and RPs to expedite the resolution process.
* Encourage IRPs and RPs to maximize the value of the corporate debtor's assets during the resolution process.
**5. Key Provisions / Changes:**
The primary changes introduced by this amendment are:
* **Substitution of "Schedule" with "ScheduleI":** The amendment replaces the word "Schedule" with "ScheduleI" throughout the principal regulations to presumably prepare for the addition of a new schedule.
* **Introduction of Regulation 34B (Fee to be paid to interim resolution professional and resolution professional):** This is the core change, establishing a comprehensive framework for IRP/RP fees. It includes:
* **Fee Determination:** The fee is to be decided by the applicant or the committee.
* **Minimum Fixed Fee:** RPs and IRPs appointed on or after October 1, 2022, must receive a minimum fixed fee according to claim amounts as specified in "Table 1," in "Schedule II." Fees can be higher based on market factors.
* **Fee Duration:** This minimum fee applies until the submission of a resolution plan, liquidation application, withdrawal application, or closure order, whichever occurs first.
* **Performance-Linked Incentive:** The committee has the discretion to pay a performance-linked incentive fee up to five crore rupees, according to the guidelines in "Schedule II".
* **Fee Source:** Fees can be paid from corporate debtor funds, contributions from the applicant/committee, or interim financing and are considered part of the insolvency resolution process cost.
* **Insertion of Schedule II:** This schedule provides specific details on the minimum fixed fee structure and performance-linked incentive fees.
* **Table 1 (Minimum Fixed Fee Structure):** Sets minimum monthly fees for IRPs/RPs based on the quantum of admitted claims, ranging from Rs. 1 lakh for claims less than or equal to Rs. 50 crore to Rs. 5 lakh for claims exceeding Rs. 10,000 crore.
* **Table 2 (Performance-linked incentive fee for timely resolution):** Specifies incentive fees based on the time taken to submit the resolution plan to the Adjudicating Authority.
* **Performance-linked incentive fee for value maximisation:** specifies one per cent of the amount by which the realisable value is higher than the liquidation value.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by this amendment include:
* Interim Resolution Professionals (IRPs)
* Resolution Professionals (RPs)
* Applicants initiating the CIRP
* Committees of Creditors (CoC)
* Corporate Debtors
* Adjudicating Authority (AA)
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies:** The IBBI is the regulatory body responsible for implementing and overseeing these regulations. The Committees of Creditors (CoC) and the Adjudicating Authority (AA) also play crucial roles in approving fee structures and resolution plans.
* **Timelines and procedures:**
* The amendment comes into force on the date of its publication in the Official Gazette (September 13, 2022).
* The minimum fixed fee structure applies to IRPs/RPs appointed on or after October 1, 2022.
* Performance-linked incentive fees are applicable to resolution plans approved by the committee on or after October 1, 2022.
* The illustrative example includes timelines for submission of a resolution plan to the Adjudicating Authority to determine incentives.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these amendments are:
* **Standardized Fee Structure:** A more predictable and transparent fee structure for IRPs and RPs.
* **Improved Efficiency:** Incentivizing timely resolution to reduce delays in the CIRP.
* **Value Maximization:** Encouraging IRPs and RPs to maximize the value of the corporate debtor's assets, benefiting creditors.
* **Greater Accountability:** Increasing the accountability of IRPs and RPs by linking fees to performance.
**9. Conclusion:**
The IBBI's Insolvency Resolution Process for Corporate Persons Third Amendment Regulations, 2022, represents a significant step towards refining the CIRP framework. By introducing structured fee mechanisms and performance-linked incentives, the amendment seeks to improve the efficiency, effectiveness, and transparency of the insolvency resolution process. The implementation of these changes will likely have a positive impact on all stakeholders involved in the CIRP, leading to better outcomes for creditors and a more robust insolvency resolution system.
Key Entities Referenced
NEW DELHI: Location of publication of the gazette notification.
Insolvency and Bankruptcy Board of India: Regulatory body that issued the notification.
Insolvency and Bankruptcy Code, 2016: The legal code under which the regulations are being amended.
Insolvency Resolution Process for Corporate Persons Regulations, 2016: The regulations being amended by this notification.
Insolvency Resolution Process for Corporate Persons Third Amendment Regulations, 2022: The title of the current amendment to the regulations.
Official Gazette: The official publication where the amended regulations will be published.
ScheduleI: Reference to a schedule within the Insolvency Resolution Process for Corporate Persons Regulations, 2016.
ScheduleII: A new schedule being inserted into the Insolvency Resolution Process for Corporate Persons Regulations, 2016, detailing minimum fixed fees and performance-linked incentive fees for resolution professionals.
interim resolution professional: A professional appointed to manage the affairs of a corporate debtor during the interim period of the insolvency resolution process.
resolution professional: A professional appointed to manage the insolvency resolution process of a corporate debtor.
Adjudicating Authority: The authority that approves the resolution plan.
Ravi Mital: Chairperson of Insolvency and Bankruptcy Board of India.
Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2022: Previous amendment to the regulations.
section 196: Section of the Insolvency and Bankruptcy Code, 2016
section 240: Section of the Insolvency and Bankruptcy Code, 2016
section 30: Section of the Insolvency and Bankruptcy Code, 2016
section 33: Section of the Insolvency and Bankruptcy Code, 2016
section 12A: Section of the Insolvency and Bankruptcy Code, 2016
section 31: Section of the Insolvency and Bankruptcy Code, 2016
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-13092022-238770
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CG-DL-E-13092022-238770
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 448] नई दिल्ली, मगं लवार, जसतम्ब र 13, 2022/भाद्र 22, 1944
No. 448] NEW DELHI, TUESDAY, SEPTEMBER 13, 2022/BHADRA 22, 1944
भारतीय दिवाला और िोधन अक्षमता बोड ड
अजधसचू ना
नई दिल्ली, 13 जसतम्बर, 2022
भारतीय दिवाला और िोधन अक्षमता बोडड (कारपोरेट व्यजियों के जलए दिवाला समाधान प्रदिया) (तीसरा सिं ोधन)
जवजनयम, 2022
स.ं आई.बी.बी.आई./2022-23/िी.एन./आर.ई.िी.091.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला
और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196 की उपधारा (1) के खंड
(अअ) एवं खडं (न) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, भारतीय दिवाला और िोधन अक्षमता बोड ड (कारपोरेट
व्यजियों के जलए दिवाला समाधान प्रदिया) जवजनयमन, 2016 का और संिोधन करने के जलए जनम्नजलजखत जवजनयम
बनाता ि,ै अथाडत:् -
1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोडड (कारपोरेट व्यजियों के जलए
दिवाला समाधान प्रदिया) (तीसरा संिोधन) जवजनयम, 2022 ि ै।
(2) य ेरािपत्र में प्रकािन की तारीख को प्रवृत्त िोंग े ।
2. भारतीय दिवाला और िोधन अक्षमता बोड ड (कारपोरेट व्यजियों के जलए दिवाला समाधान प्रदिया) जवजनयमन,
2016 (जिन्ि ें इसमें इसके पश्चात् ‘मूल जवजनयम’ किा गया ि)ै में, “अनुसूची” िब्ि के स्ट्थान पर, ििा-ं ििां वि आता ि,ै
“अनुसूची-I” िब्ि और जचह्न रखा िाएगा ।
6143 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
3. मूल जवजनयमों में, जवजनयम 34क के पश्चात ्जनम्नजलजखत अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:-
“34ख. अतं ठरम समाधान व्यावसाजयक और समाधान व्यावसाजयक को सिं त्त की िान ेवाली फीस
(1) जवजनयम 33 और 34 के तित, अंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक की फीस, इस जवजनयम
के अनुसार आवेिक या सजमजत द्वारा जनधाडठरत की िाएगी।
(2) 1 अक्टूबर, 2022 को या उसके पश्चात जनयुि दकए गए अतं ठरम समाधान व्यावसाजयक या समाधान
व्यावसाजयक की फीस, अनुसूची-II के खंड 2 में जवजनर्िष्टड अवजध के जलए खडं 1 में जवजनर्िष्टड फीस से कम निीं िोगी:
परन्तु आविेक या सजमजत, उन कारणों स,े िो लेखबद्ध दकए िाएं, बािार के कारकों, िैसे कारपोरेट ऋणी के
कारबार प्रचालनों के आकार और पैमाने, उस कारबार क्षेत्र को, जिसमें कारपोरेट ऋणी प्रचालन करता ि,ै कारपोरेट
ऋणी की आर्थडक गजतजवजध का प्रचालन स्ट्तर, कारपोरेट दिवाला समाधान प्रदिया से संबंजधत िठटलताओं को
जवचार में रखत े हुए फीस की जवजनर्िष्टड रकम से उच्चतर रकम जनयत कर सकेगी ।
(3) अनुसूची II के खंड 2 म ें उजल्लजखत अवजध की समाजप्त के पश्चात, अंतठरम समाधान व्यावसाजयक या समाधान
व्यावसाजयक की फीस आवेिक या सजमजत , िैसा भी मामला िो, द्वारा तय की िाएगी।
(4) 1 अक्टूबर, 2022 को या उसके पश्चात सजमजत द्वारा अनुमोदित समाधान योिना के जलए, सजमजत अपन े
जववेकानुसार कायड-जनष्पािन आधाठरत प्रोत्सािन फीस का भुगतान करने का जनणडय अनुसूची-II के खंड 3 और खंड 4
के अनुसार ले सकती ि ै या यथाआवश्यक तरीके से कोई और कायड- जनष्पािन आधाठरत प्रोत्सािन संरचना लागू कर
सकती ि,ै बिते यि फीस पांच करोड़ रुपये स ेअजधक निीं ि ै।
(5) इस जवजनयम के तित फीस का भुगतान कारपोरेट िेनिार के पास उपलब्ध जनजध से, आवेिक या सजमजत के
सिस्ट्यों के योगिान से और/या अंतठरम जवत्त के माध्यम से एकत्र करके दकया िा सकता ि ै और इसे दिवाला समाधान
प्रदिया लागत में िाजमल दकया िाएगा।”
4. मूल जवजनयमों में, अनुसूची-I के पश्चात ्जनम्नजलजखत अंतःस्ट्थाजपत दकया िाएगा, अथाडत:् -
“अनसु चू ी-II
[भारतीय दिवाला और िोधन अक्षमता बोड ड(कारपोरेट व्यजियों के जलए दिवाला समाधान प्रदिया) जवजनयमन, 2016 के
जवजनयम 34ख के अधीन]
न्यनू तम जनयत फीस
1. अंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक, िैसा भी मामला िो, को खंड 2 म ें उजल्लजखत अवजध के जलए
नीचे िी गई सारणी-1 के अनुसार न्यूनतम जनयत फीस संित्त की िाएगी:
सारणी-1: न्यनू तम जनयत फीस ढाचं ा
स्ट्वीकृत िावों का पठरमाण न्यनू तम प्रजत मास फीस (लाख रुपयों म)ें
(i) 50 करोड़ रूपए से कम या उसके बराबर 1.00
(ii) 50 करोड़ रूपए से अजधक लेदकन 500 करोड़ रूपए से कम या उसके 2.00
बराबर
(iii) 500 करोड़ रूपए स ेअजधक लेदकन 2,500 करोड़ रूपए से कम या 3.00
उसके बराबर
(iv) 2,500 करोड़ रूपए से अजधक लेदकन 10,000 करोड़ रूपए से कम या 4.00
उसके बराबर
(v) 10,000 करोड़ रूपए से अजधक 5.00[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
न्यनू तम जनयत फीस की अवजध
2. न्यनू तम जनयत फीस, यथाजस्ट्थजत, अंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक के रूप म ेंजनयुजि करने स े -
(क) धारा 30 के अधीन समाधान योिना के अनुमोिन के जलए आवेिन प्रस्ट्ततु करने;
(ख) धारा 33 के अधीन कारपोरेट ऋणी का समापन करने के जलए आवेिन प्रस्ट्ततु करन;े
(ग) धारा 12क के अधीन प्रत्यािरण के जलए आवेिन प्रस्ट्तुत करने; या
(घ) कारपोरेट दिवाला समाधान प्रदिया को बन्ि करन े का आिेि िोंन;े
के समय तक की अवजध के जलए, इन म ेंसे िो भी पूवडतर िो, लागू िोगी ।
समयबद्ध समाधान के जलए काय-ड जनष्पािन आधाठरत प्रोत्सािन फीस
3. ऐसे मामलों में, ििां समाधान योिना न्यायजनणाडयक प्राजधकारी को दिवाला प्रदिया प्रारंभ िोने की तारीख स े
सारणी-2 में िी गई समयावजध के भीतर प्रस्ट्तुत की िाती ि ै विां समाधान व्यावसाजयक को, समाधान आवेिक द्वारा
लेनिारों को भगु तान िुरू िोन ेके पश्चात और न्यायजनणाडयक प्राजधकारी द्वारा ऐसी समाधान योिना के अनुमोिन के पश्चात ्
सारणी-2 के अनुसार कायड-जनष्पािन आधाठरत प्रोत्सािन फीस संित्त की िा सकेगी ।
सारणी-2: समयबद्ध समाधान के जलए काय-ड जनष्पािन आधाठरत प्रोत्सािन फीस
दिवाला समाधान प्रदिया की तारीख स ेसमय वसलू नीय मल्ू य के प्रजतित के रूप म ेंफीस
(i)165 दिन से कम या उसके बराबर 1.00
(ii) 165 दिन से अजधकलेदकन 270 दिन से कम या 0.75
उसके बराबर
(iii) 270 दिन स े अजधक लेदकन 330 दिन स े कम 0.50
या उसके बराबर
(iv) 330 दिन से अजधक 0.00
अजधकतम मल्ू याकं न के जलए काय-ड जनष्पािन आधाठरत प्रोत्सािन फीस
4. समाधान व्यावसाजयक को, अजधकतम मल्ू यांकन के जलए कायड-जनष्पािन आधाठरत प्रोत्सािन फीस का संिाय,
समाधान आवेिक द्वारा लने िारों को भुगतान िुरू िोने के पश्चात और न्यायजनणाडयक प्राजधकारी द्वारा समाधान योिना का
अनुमोिन कर दिए िान े के पश्चात् उस रकम के एक प्रजतित की िर पर दकया िा सकेगा, जितना वसूलनीय मूल्य समापन
मूल्य से उच्चतर ि ै।
स्ट्पष्टीकरण: खंड 3 और खंड 4 के प्रयोिनों के जलए, ‘वसूलनीय मूल्य’ से धारा 31 के अधीन अनुमोदित समाधान योिना म ें
लेनिारों को संिेय रकम अजभप्रते ि ै।
िष्टृ ातं -
दकसी ऐसे कारपोरेट ऋणी का, जिसका समापन मूल्य बीस करोड़ रूपए ि,ै समाधान दकया गया था और लने िारों का
वसूलनीय मल्ू य एक सौ करोड़ रुपए था। न्यायजनणाडयक प्राजधकारी को समाधान योिना दिवाला प्रदिया प्रारंभ िोन े की
तारीख से 170वें दिन प्रस्ट्तुत की गई थी। सजमजत न े खंड 3 और 4 के अधीन काय-ड जनष्पािन आधाठरत प्रोत्सािन फीस का
संिाय करने का जवजनश्चय दकया ि ै।
इस मामले म,ें समाधान व्यावसाजयक को संिेय फीस जनम्न प्रकार िोगी:
(i) समयबद्ध समाधान के जलए कायड-जनष्पािन आधाठरत प्रोत्सािन फीस: 100 करोड़ का 0.75 प्रजतित = 75 लाख रुपए;
और
(ii) अजधकतम मूल्यांकन के जलए कायड-जनष्पािन आधाठरत प्रोत्सािन फीस: 80 करोड़ रूपए(100 करोड़ रूपए – 20 करोड़
रुपए) का 1.00 प्रजतित= 80 लाख रूपए।"
रजव जमत्तल, अध्यक्ष
[जवज्ञापन-III/4/असा./272/2022-23]4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
ठटप्पण : भारतीय दिवाला और िोधन अक्षमता बोड ड (कारपोरेट व्यजियों के जलए दिवाला समाधान प्रदिया) जवजनयमन,
2016, भारत के रािपत्र, असाधारण, भाग 4 स.ं 432, तारीख 30 नवम्बर, 2016 में अजधसूचना सं.
आई.बी.बी.आई./2016-17/िी.एन./आर.ई.िी.004, तारीख 30 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थ े
और उनमें अजं तम संिोधन भारत के रािपत्र, असाधारण, भाग III, खडं 4, स.ं 302, तारीख 14 िून, 2022 में,
अजधसूचना सं. आई.बी.बी.आई./2022-23/िी.एन./आर.ई.िी.084, तारीख 14 िून, 2022 द्वारा प्रकाजित
भारतीय दिवाला और िोधन अक्षमता बोड ड (कारपोरेट व्यजियों के जलए दिवाला समाधान प्रदिया) (िसू रा
संिोधन) जवजनयम, 2022 द्वारा दकया गया था ।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 13th September, 2022
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Third Amendment) Regulations, 2022
No. IBBI/2022-23/GN/REG091.- In exercise of the powers conferred by clauses (aa) and (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 (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) (Third 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’), the word “Schedule”
shall be substituted with the word and mark “Schedule-I”, wherever it is appearing.
3. In the principal regulations, after regulation 34A, the following regulations shall be inserted, namely:-
“34B. Fee to be paid to interim resolution professional and resolution professional.
(1) The fee of interim resolution professional or resolution professional, under regulation 33 and 34,
shall be decided by the applicant or committee in accordance with this regulation.
(2) The fee of the interim resolution professional or the resolution professional, appointed on or after
1st October 2022, shall not be less than the fee specified in clause 1 for the period specified in
clause 2 of Schedule-II:
Provided that the applicant or the committee may decide to fix higher amount of fee for the
reasons to be recorded, taking into consideration market factors such as size and scale of business
operations of corporate debtor, business sector in which corporate debtor operates, level of
operating economic activity of corporate debtor and complexity related to process.
(3) After the expiry of period mentioned in clause 2 of Schedule-II, the fee of the interim resolution
professional or resolution professional shall be as decided by the applicant or committee, as the
case may be.
(4) For the resolution plan approved by the committee on or after 1st October 2022, the committee may
decide, in its discretion, to pay performance-linked incentive fee, not exceeding five crore rupees,
in accordance with clause 3 and clause 4 of Schedule-II or may extend any other performance-
linked incentive structure as it deems necessary.
(5) The fee under this regulation may be paid from the funds, available with the corporate debtor,
contributed by the applicant or members of the committee and/or raised by way of interim finance
and shall be included in the insolvency resolution process cost.”[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 5
4. In the principal regulations, after Schedule-I, the following shall be inserted, namely: -
“Schedule-II
(Under Regulation 34B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process
for Corporate Persons) Regulations, 2016)
Minimum Fixed Fee.
1. Minimum fixed fee as per the table -1 below shall be paid to the interim resolution professional or the
resolution professional, as the case may be, for the period mentioned in clause 2:
Table-1: Minimum Fixed Fee Structure
Quantum of Claims Admitted Minimum Fee Per
Month
(Rs. lakh)
(i) Less than or equal to Rs. 50 crore 1.00
(ii) More than Rs.50 crore but less than or equal to Rs.500 crore 2.00
(iii) More than Rs.500 crore but less than or equal to Rs.2,500 crore 3.00
(iv) More than Rs.2,500 crore but less than or equal to Rs.10,000 crore 4.00
(v) More than Rs.10,000 crore 5.00
Period for minimum fixed fee.
2. The minimum fixed fee shall be applicable for the period, from appointment as interim resolution
professional or resolution professional, till the time of –
(a) submission of application for approval of resolution plan under section 30;
(b) submission of application to liquidate the corporate debtor under section 33;
(c) submission of application for withdrawal under section 12A; or
(d) order for closure of corporate insolvency resolution process;
whichever is earlier.
Performance-linked incentive fee for timely resolution.
3. In cases where resolution plan is submitted to the Adjudicating Authority within the time period given
in table-2 from the insolvency commencement date, performance-linked incentive fee as per table-2 may
be paid to the resolution professional, after approval of such resolution plan by the Adjudicating
Authority on commencement of payment to creditors by the resolution applicant.
Table-2: Performance-linked incentive fee for timely resolution
Time period from insolvency commencement date Fee as % of
Realisable Value
(i) Less than or equal to 165 days 1.00
(ii) More than 165 days but less than or equal to 270 days 0.75
(iii) More than 270 days but less than or equal to 330 days 0.50
(iv) More than 330 days 0.00
Performance-linked incentive fee for value maximisation.
4. The performance-linked incentive fee for value maximisation may be paid to the resolution
professional at the rate of one per cent of the amount by which the realisable value is higher than the
liquidation value, after approval of the resolution plan by Adjudicating Authority on commencement of
payment to creditors by the resolution applicant.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
Explanation: For the purposes of clause 3 and clause 4, “realisable value” means the amount payable to
creditors in the resolution plan approved under section 31.
Illustration -
A corporate debtor having liquidation value of twenty crore rupees was resolved and the realisable value
to creditors was one hundred crore rupees. The resolution plan was submitted to the Adjudicating
Authority on 170th day from the insolvency commencement date. The committee has decided to pay the
performance-linked incentive fees under clause 3 and 4.
In this case, fee payable to the resolution professional shall be as under:
(i) Performance-linked incentive fee for timely resolution: 0.75% of Rs. 100 crore = Rs.75
lakh, and
(ii) Performance-linked incentive fee for value maximisation: 1.00% of Rs. 80 crore (Rs.100
crore – Rs.20 crore) = Rs.80 lakh.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./272/2022-23]
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) (Second Amendment) Regulations, 2022
published vide notification No. IBBI/2022-23/GN/REG084, dated the 14th June 2022 in the
Gazette of India, Extraordinary, Part III, Section 4, No. 302 on 14th June, 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.