Date: 2021-04-27Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by sections 196, 203 and 205 read with section 240 of the Insolvency and Bankruptcy Code 2016 31 of 2016 the Insolvency and Bankruptcy Board of India
## Report on the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2021
**1. Executive Summary:**
This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2021, as published in the Gazette of India on April 27, 2021. This amendment modifies the 2016 regulations concerning the functioning of Insolvency Professional Agencies (IPAs). Key changes include a deemed approval provision for authorization assignments under specific conditions and an extension of the timeline for IPA decisions. These amendments aim to streamline the authorization process and provide applicants with recourse in case of rejection within a defined timeframe.
**2. Introduction:**
The purpose of this report is to provide an informative overview and analysis of the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2021, based solely on the provided policy text. This report focuses on the specific changes introduced by the amendment.
**3. Policy Overview:**
* This document amends the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations, 2016.
* **Core Objective(s):** Based on the provided text, the amendment aims to improve the efficiency and transparency of the authorization process for assignment of insolvency professionals by Insolvency Professional Agencies (IPAs).
**4. Background and Rationale:**
The amendment likely addresses potential delays in the authorization process and the need for a mechanism to appeal rejections. The introduction of a "deemed approval" clause for applications not processed within thirty days suggests that delays were an issue. The addition of an appeal process for rejected applications indicates a move towards greater fairness and accountability.
**5. Key Provisions / Changes:**
This section details the changes introduced by the amendment:
* **Change 1:** Modifies clause 12A, sub-clause 5 of the Schedule in the principal regulations.
* **New Rule/Provision:** Introduces a "deemed approval" provision. For applications received between the date of commencement of these amendment regulations and October 31, 2021, if the IPA does not issue, renew, or reject the authorization within thirty days of receipt, the authorization is *deemed* to have been issued or renewed.
* **Effect of Change:** This provision incentivizes IPAs to process applications within a specific timeframe, potentially reducing delays. Applicants also benefit from a guaranteed decision (either explicit or deemed) within thirty days. This provision is time-bound, applying only to applications received within a defined period.
* **Change 2:** Modifies clause 12A, sub-clause 7 of the Schedule in the principal regulations.
* **New Rule/Provision:** Extends the timeframe for IPA decisions from "seven days" to "fifteen days".
* **Effect of Change:** Potentially increases the time IPAs can take to make decisions.
* **New Rule/Provision:** Introduces an appeal mechanism. Applicants whose authorization for assignment has been rejected by an IPA between the date of commencement of the amendment regulations and October 31, 2021, may appeal to the Membership Committee within thirty days from the date of receipt of order.
* **Effect of Change:** Provides a channel for appealing rejection decisions, potentially ensuring fairness and due process. This provision is also time-bound, applying only to rejections issued within a defined period.
**6. Target Audience and Stakeholders:**
The primary stakeholders directly affected by these amendments are:
* Insolvency Professionals seeking authorization for assignment.
* Insolvency Professional Agencies (IPAs) responsible for processing and approving authorization applications.
* Membership Committee involved in appeal process
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Insolvency and Bankruptcy Board of India (IBBI) is the governing body responsible for these regulations. Insolvency Professional Agencies (IPAs) are responsible for implementation at the operational level.
* **Timelines:** The "deemed approval" and appeal provisions apply specifically to applications received (and rejections issued) between the date of commencement of the amendment regulations (April 27, 2021) and October 31, 2021. The appeal must be made to the Membership Committee within thirty days of the receipt of order.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* **Reduced Delays:** The "deemed approval" provision should incentivize IPAs to process applications more efficiently, reducing delays in the authorization process.
* **Increased Accountability:** The introduction of an appeal mechanism provides greater recourse for applicants whose applications are rejected, promoting fairness and accountability within the system.
* **Potential for Increased Workload:** The 15-day timeframe may potentially increase the workload for the IPAs.
**9. Conclusion:**
The Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2021 introduce specific, time-bound changes designed to improve the authorization process for Insolvency Professionals. The "deemed approval" and appeal provisions aim to reduce delays, increase accountability, and ensure fairness within the IPA system. These amendments have a direct impact on Insolvency Professionals and IPAs, and their effectiveness will depend on the implementation and adherence to the specified timelines and procedures. The time-bound nature of the most significant changes suggests a pilot approach or a temporary measure to address a specific issue.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: A regulatory body in India.
Insolvency and Bankruptcy Code, 2016: A law in India related to insolvency and bankruptcy.
Insolvency Professional Agencies: Agencies related to the insolvency resolution process.
Insolvency and Bankruptcy Board of India Model ByeLaws and Governing Board of Insolvency Professional Agencies Regulations, 2016: Regulations established by the Insolvency and Bankruptcy Board of India.
New Delhi: Capital of India, place of notification
Membership Committee: Committee related to membership within an insolvency professional agency.
Sudhaker Shukla: Wholetime Member of Insolvency and Bankruptcy Board of India
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-27042021-226771
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 186] नई दिल्ली, मगं लवार, अप्रलै 27, 2021/विै ाख 7, 1943
No. 186] NEW DELHI, TUESDAY, APRIL 27, 2021/VAISAKHA 7, 1943
भारतीय दिवाला और िोधन अक्षमता बोड ड
अजधसचू ना
नई दिल्ली, 27 अप्रलै , 2021
भारतीय दिवाला और िोधन अक्षमता बोडड (आिि डउप-जवजधया ंऔर दिवाला व्यावसाजयक एिजें सयों का िासी बोडड)
(िसू रा सिं ोधन) जवजनयम, 2021
आई.बी.बी.आई./2021-22/िी.एन./आर.ई.िी.074.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला और
िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196, धारा 203 और धारा 205 द्वारा
प्रित्त िजियों का प्रयोग करते हुए, भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला
व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयमन, 2016 का और संिोधन करन े के जलए जनम्नजलजखत जवजनयम बनाता ि,ै
अथाडत:् -
1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला
व्यावसाजयक एिेंजसयों का िासी बोडड) (िसू रा संिोधन) जवजनयम, 2021 ि ै।
(2) य ेरािपत्र में उनके प्रकारिन की तारीख को प्रवृत्त िोंग े ।
2. भारतीय दिवाला और िोधन अक्षमता बोड ड (आिि ड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड)
जवजनयमन, 2016 (जिन्ि ेंइसमें इसके पश्चात ्मलू जवजनयम किा गया ि)ै की अनुसूची के खडं 12क में,-
(i) उपखडं (5) में, परन्तुक के पश्चात् जनम्नजलजखत परन्तुक अंतःस्ट्थाजपत दकया िाएगा, अथाडत:्-
2407 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“परन्तु यि और दक भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक
एिेंजसयों का िासी बोडड) (िसू रा संिोधन) जवजनयम, 2021 के प्रारंभ की तारीख से और 31 अिूबर, 2021 को
समाजप्त अवजध तक प्राप्त िोने वाले दकसी आवेिन के जलए, यदि एिेंसी द्वारा जनयतकायड(असाइनमेंट) के जलए
प्राजधकार-पत्र, आवेिन की प्राजप्त की तारीख से तीस दिन के भीतर िारी, नवीकृत या अस्ट्वीकृत निीं दकया िाता
ि ैतो प्राजधकार-पत्र एिेंसी द्वारा यथाजस्ट्थजत, िारी या नवीकृत दकया गया समझा िाएगा ।”
(ii) उपखंड (7) में,-
(क) “सात दिन” िब्िों के स्ट्थान पर “पन्रि दिन” िब्ि रख ेिाएंगे ।
(ख) परन्तुक के पश्चात,् जनम्नजलजखत परन्तुक अंतःस्ट्थाजपत दकया िाएगा, अथाडत:् -
“परन्तु यि और दक ििां जनयतकायड(असाइनमेंट) के जलए प्राजधकार-पत्र िारी करने के जलए कोई
आवेिन, दकसी दिवाला व्यावसाजयक एिेंसी द्वारा भारतीय दिवाला और िोधन अक्षमता बोडड (आिि ड उप-
जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोड)ड (िसू रा संिोधन) जवजनयम, 2021 के प्रारंभ िोन े
की तारीख से 31 अिूबर, 2021 को समाप्त अवजध तक अस्ट्वीकार कर दिया गया ि ै विां अस्ट्वीकार दकए िाने
वाले आिेि से व्यजथत आवेिक, आिेि की प्राजप्त की तारीख से तीस दिन के भीतर सिस्ट्यता सजमजत को अपील
कर सकेगा ।”
सुधाकर िुक्ला, पूणडकाजलक सिस्ट्य
[जवज्ञापन III/4/असा./50/2021-22]
ठटप्पण: भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी
बोडड) जवजनयमन, 2016, भारत के रािपत्र, असाधारण, भाग 3, खंड 4, सं. 421, तारीख 22 नवम्बर, 2016 में
अजधसूचना सं. आई.बी.बी.आई./2016-17/िी.एन./आर.ई.िी.001, तारीख 21 नवम्बर, 2016 द्वारा प्रकाजित दकए गए
थे और तत्पश्चात ् उनम ें-
(1) भारत के रािपत्र, असाधारण, भाग 3, खंड 4, सं. 383, तारीख 11 अिूबर, 2018 में अजधसूचना
सं. आई.बी.बी.आई./2018-19/िी.एन./आर.ई.िी.35, तारीख 11 अिूबर, 2018 द्वारा प्रकाजित
भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का
िासी बोडड) (संिोधन) जवजनयम, 2018;
(2) भारत के रािपत्र, असाधारण, भाग 3, खंड 4, सं. 261, तारीख 23 िलु ाई, 2019 में अजधसूचना
सं. आई.बी.बी.आई./2019-20/िी.एन./आर.ई.िी.043, तारीख 23 िुलाई, 2019 द्वारा प्रकाजित
भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का
िासी बोडड) (संिोधन) जवजनयम, 2019;
(3) भारत के रािपत्र, असाधारण, भाग 3, खंड 4, सं. 155, तारीख 24 अप्रलै , 2020 में अजधसूचना
सं. आई.बी.बी.आई./2020-21/िी.एन./आर.ई.िी.058, तारीख 20 अप्रलै , 2020 द्वारा प्रकाजित
भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का
िासी बोडड) (संिोधन) जवजनयम, 2020; और
(4) भारत के रािपत्र, असाधारण, भाग 3, खंड 4, सं. 23, तारीख 14 िनवरी, 2021 में अजधसूचना
सं. आई.बी.बी.आई./2020-21/िी.एन./आर.ई.िी.068, तारीख 14 िनवरी, 2021 द्वारा प्रकाजित[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का
िासी बोडड) (संिोधन) जवजनयम, 2021 द्वारा उनमें संिोधन दकए गए ।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, 27th April, 2021
Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional
Agencies) (Second Amendment) Regulations, 2021
No. IBBI/2021-22/GN/REG074.—In exercise of the powers conferred by sections 196, 203 and 205 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 (Model
Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, namely:-
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Model Bye-Laws and
Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 2021.
(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 (Model Bye-Laws and Governing Board of Insolvency
Professional Agencies) Regulations, 2016 (hereinafter referred to as the principal regulations), in the Schedule, in
clause 12A,
(i) in sub-clause (5), after the proviso, the following proviso shall be inserted , namely: -
“Provided further that, for an application received on and from the date of commencement of the Insolvency
and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional
Agencies) (Second Amendment) Regulations, 2021 and ending on the 31st October 2021, if the authorisation
for assignment is not issued, renewed or rejected by the Agency within thirty days of the date of receipt of
application, the authorisation shall be deemed to have been issued or renewed, as the case may be, by the
Agency.”
(ii) in sub-clause (7),
(a) the words “seven days” shall be substituted with the words “fifteen days”.
(b) after the proviso, the following proviso shall be inserted, namely:-
“Provided further that, where an application for issue of authorisation for assignment has been rejected by
an insolvency professional agency, on and from the date of commencement of the Insolvency and
Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies)
(Second Amendment) Regulations, 2021 and ending on the 31st October, 2021, the applicant aggrieved of
an order of rejection may appeal to the Membership Committee within thirty days from the date of receipt
of order.”
SUDHAKER SHUKLA, Whole-time Member
[ADVT. III/4/Exty./50/2021-22]
Note: The Insolvency and Bankruptcy Board of India (Model Bye–Laws and Governing Board of Insolvency
Professional Agencies) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG001 dated
21st November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 421 on 22nd November, 2016 and
were subsequently amended by-
(1) The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency
Professional Agencies) (Amendment) Regulations, 2018 published vide notification No. IBBI/2018-
19/GN/REG35 dated 11th October, 2018 in the Gazette of India, Extraordinary, Part III, Section 4,
No. 383 on 11th October, 2018;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
(2) The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency
Professional Agencies) (Amendment) Regulations, 2019 published vide notification No. IBBI/2019-
20/GN/REG043 dated 23rd July 2019 in the Gazette of India, Extraordinary, Part III, Section 4, No.261
on 23rd July 2019;
(3) The Insolvency and Bankruptcy Board of India (Model Bye- laws and Governing Board of Insolvency
Professional Agencies) (Amendment) Regulations, 2020 published vide notification No. IBBI/2020-
21/GN/REG058 dated 20th April, 2020, in the Gazette of India, Extraordinary, Part III, Section 4,
No.155 on 24th April, 2020; and
(4) The Insolvency and Bankruptcy Board of India (Model Bye- laws and Governing Board of Insolvency
Professional Agencies) (Amendment) Regulations, 2021 published vide notification No. IBBI/2020-
21/GN/REG068 dated 14th January, 2021, in the Gazette of India, Extraordinary, Part III, Section 4,
No. 23 on 14th January, 2021.
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.