Government of India

Ministry of Corporate Affairs

File No. 30/21/2018- Insolvency Section

Dated: 8th May, 2019

Invitation of Public Comments on the draft Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors), Rules, 2019.

The Insolvency and Bankruptcy Code, 2016 (Code) envisages reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all stakeholders. In the two years since the enactment of the Code, the provisions relating to corporate insolvency resolution, including fast track resolution, corporate liquidation and voluntary liquidation of corporate debtors (CDs) have been operationalised.

2.  Implementation of the individual insolvency and bankruptcy is intended in phased manner and accordingly at present the provisions of Part III of the Code for personal guarantors to CDs are proposed to be notified in the first phase.

3.  Suggestions/ comments are invited from stakeholders for the draft Rules annexed as Annexure Comments/ suggestions along with brief justification may be sent by e-mail in the format prescribed below at [email protected]  till  31^st May, 2019 :-

S. No.	Name of Stakeholder	Designation	Organization	Rule No.	Suggestion along with justification

(Rakesh Tyagi)

Director

Personal guarantor bankruptcy rules set forms, filing fees, trustee appointment, claim submissions and asset valuation methods. Rules set the procedural framework for bankruptcy proceedings against personal guarantors to corporate debtors, specifying competent Adjudicating Authority, prescribed forms and fees (Form A by debtor, Form B by creditor; fee five thousand rupees), service obligations, appointment of a bankruptcy trustee, public and creditor notice requirements, creditor claim submission in Form F with proof, and detailed rules on excluded assets and valuation of a single dwelling unit including a Schedule prioritising rent-capitalisation, comparable and land-and-building methods.