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

In exercise of the powers conferred by clauses aa and t of sub section 1 of section 196, section 208 read with section 240 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 Professionals) (Amendment) Regulations, 2024. These regulations amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
  • The amendments primarily relate to the resignation of insolvency professionals from assignments, and the engagement or appointment of partners or directors by insolvency professional entities for specific tasks.

Key Changes

  • Clause 22A is inserted, allowing an insolvency professional to resign from an assignment, subject to the recommendation of the committee of creditors (in a corporate insolvency resolution process), consultation committee (in a liquidation process), or the debtor/creditor (in the insolvency resolution process of a personal guarantor to the corporate debtor), and the approval of the Adjudicating Authority.
  • An explanation is added to Clause 22A clarifying that the insolvency professional must continue to perform their duties until the Adjudicating Authority approves the resignation.
  • An explanation is inserted in Clause 23B, clarifying that an insolvency professional entity may engage its partners or directors for work related to any assignment, except for valuation and audit of the debtor.
  • Clause 23C is amended by renumbering the existing explanation as Explanation 1 and inserting a new Explanation 2. Explanation 2 clarifies that an insolvency professional entity may provide any service, other than valuation and audit, for or in connection with an assignment being undertaken by its partners or directors.

Impact Analysis

Insolvency Professionals

  • Insolvency professional entities can provide services beyond valuation and audit related to assignments undertaken by their partners or directors, potentially expanding their service offerings.

Creditors and Debtors

  • The requirement for continued service until approval of resignation ensures that the insolvency process is not disrupted by an abrupt departure of the insolvency professional.

Adjudicating Authority

  • The Adjudicating Authority's oversight helps maintain the integrity and efficiency of the insolvency resolution process.

Insolvency Professional Entities

  • They can engage partners/directors for any work excluding valuation and audit of the debtor.

Key Entities Referenced

Insolvency and Bankruptcy Board of India (IBBI): The regulatory body responsible for implementing and overseeing the Insolvency and Bankruptcy Code, 2016. Insolvency and Bankruptcy Code, 2016: The primary legislation governing insolvency and bankruptcy proceedings in India. Insolvency Professionals: Professionals registered with the IBBI who manage the insolvency resolution process. Adjudicating Authority: The National Company Law Tribunal (NCLT) or Debt Recovery Tribunal (DRT) that adjudicates insolvency cases. Committee of Creditors: A committee comprising the financial creditors of the corporate debtor, responsible for making key decisions during the corporate insolvency resolution process. Consultation Committee: A committee formed in liquidation process to advise the liquidator.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-01022024-251697 xxxGIDHxxx CG-DL-E-01022024-251697 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 74] नई दिल्ली, बधु वार, िनवरी 31, 2024/माघ 11, 1945 No. 74] 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 (दिवाला व्यावसाजयक) (सिं ोधन) जवजनयम, 2024 स.ं आई.बी.बी.आई./2023-24/िी.एन./आर.ई.िी.110.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196, और धारा 208 द्वारा प्रित्त िजियों का प्रयोग करते हुए, भारतीय दिवाला और िोधन अक्षमता बोड ड (दिवाला व्यावसाजयक) जवजनयमन, 2016 का और संिोधन करन े के जलए जनम्नजलजखत जवजनयम बनाता ि,ै अथाडत:् - 1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2024 ि ै। (2) य े रािपत्र म ेंप्रकािन की तारीख को प्रवृत्त िोंग े । 2. भारतीय दिवाला और िोधन अक्षमता बोड ड(दिवाला व्यावसाजयक) जवजनयमन, 2016 की प्रथम अनुसूची में, (i) खडं 22 के पश्चात्, जनम्नजलजखत खंड अंतःस्ट्थाजपत दकया िाएगा, अथातड :् - “22क. कोई दिवाला व्यावसाजयक, यथाजस्ट्थजत, दकसी कारपोरेट दिवाला समाधान प्रदिया में लने िारों की सजमजत, समापन प्रदिया में परामिड सजमजत, कारपोरेट ऋणी के व्यजिगत प्रत्याभूजतिाता की दिवाला समाधान प्रदिया म ें ऋणी या लेनिार की जसफाठरि पर, और न्यायजनणाडयक प्राजधकारी के अनुमोिन के पश्चात्, असाइनमटें से त्यागपत्र िे सकेगा । 639 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] स्ट्पष्टीकरण – दिवाला व्यावसाजयक, न्यायजनणाडयक प्राजधकारी द्वारा त्यागपत्र का अनुमोिन दकए िान े तक अपने कतडव्यों, कृत्यों और उत्तरिाजयत्वों का जनवडिन करता रिगे ा ।” (ii) खंड 23ख म,ें जनम्नजलजखत स्ट्पष्टीकरण अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:- “स्ट्पष्टीकरण.– इस खंड के प्रयोिनों के जलए, ऐसा दिवाला व्यावसाजयक, िो एक दिवाला व्यावसाजयक संस्ट्था ि,ै ऋणी के मल्ू यांकन और लेखापरीक्षा स े संबंजधत कायड से जभन्न, अपनी दकसी असाइनमेंट से संबंजधत दकसी कायड के जलए या उसके संबंध में, यथाजस्ट्थजत, अपने भागीिार या जनििे क लगा सकेगा या जनयुि कर सकेगा ।” (iii) खंड 23ग म,ें स्ट्पष्टीकरण को स्ट्पष्टीकरण 1 के रूप में पुनसंखयांदकत दकया िाएगा और इस प्रकार पुनसंखयांदकत स्ट्पष्टीकरण 1 के पश्चात्, जनम्नजलजखत स्ट्पष्टीकरण अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:- “स्ट्पष्टीकरण 2.- इस खंड के प्रयोिनों के जलए, ऐसा दिवाला व्यावसाजयक, िो एक दिवाला व्यावसाजयक संस्ट्था ि,ै ऐसे असाइनमेंट के जलए या उसके संबंध में, िो उसके, यथाजस्ट्थजत, भागीिारों या जनिेिकों द्वारा दकया िा रिा ि,ै मूल्यांकन और लेखापरीक्षा से संबंजधत सेवा से जभन्न कोई सेवा प्रिान कर सकेगा ।” रजव जमत्तल, अध्यक्ष [जवज्ञापन-III/4/असा./728/2023-24] ठटप्पण: भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) जवजनयमन, 2016, भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 424, तारीख 23 नवम्बर, 2016 में अजधसूचना सं. आई.बी.बी.आई./2016-17/िी.एन./आर.ई.िी.003, तारीख 23 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थे और उनमें अंजतम संिोधन भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 643, तारीख 18 जसतम्बर, 2023 में अजधसूचना सं. आई.बी.बी.आई./2023-24/िी.एन./आर.ई.िी.104, तारीख 18 जसतम्बर, 2023 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) (िसू रा संिोधन) जवजनयम, 2023 द्वारा दकए गए । INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 31st January, 2024 Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2024 No. IBBI/2023-24/GN/REG 110.—In exercise of the powers conferred by clauses (aa) and (t) of sub-section (1) of section 196, section 208 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 Professionals) Regulations, 2016, namely: - 1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2024. (2) They shall come into force on the date of publication in the Official Gazette. 2. In the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, in First Schedule, (i) after clause 22, the following clause shall be inserted, namely: - “22A. An insolvency professional may resign from the assignment, subject to the recommendation of the committee of creditors in a corporate insolvency resolution process, consultation committee in liquidation process, the debtor or the creditor in the insolvency resolution process of personal guarantor to the corporate debtor, as the case may be, and the approval of the Adjudicating Authority. Explanation.- The insolvency professional shall continue to discharge his duties, functions and responsibilities till the approval of resignation by the Adjudicating Authority.” (ii) in clause 23B, the following Explanation shall be inserted, namely: - “Explanation.- For the purposes of this clause, the insolvency professional which is an insolvency professional entity may engage or appoint its partners or directors, as the case may be, for or in connection with any work relating to any of its assignment other than work related to valuation and audit of the debtor.”[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 (iii) in clause 23C, the Explanation shall be renumbered as Explanation 1, and after Explanation 1 so renumbered, the following Explanation shall be inserted, namely: - “Explanation 2.- For the purposes of this clause, the insolvency professional which is an insolvency professional entity may provide any service, other than service related to valuation and audit, for or in connection with the assignment which is being undertaken by any of its partners or directors, as the case may be.” RAVI MITAL, Chairperson [ADVT.-III/4/Exty./728/2023-24] Note: The Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG003 dated 23rd November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 424 on 23rd November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2023 published vide notification No. IBBI/2023-24/GN/REG104, dated 18th September, 2023 in the Gazette of India, Extraordinary, Part III, Section 4, No. 643 on 18th September, 2023. 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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