TaxTMI 
TaxTMI 
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018
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....d shall apply to corporate insolvency resolution processes commencing on or after the said date. 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 2, in sub-regulation (1), after clause (a), the following clause shall be inserted, namely: - "(aa) "class of creditors" means a class with at least ten financial creditors under clause (b) of sub-section (6A) of section 21 and the expression, "creditors in a class" shall be construed accordingly.". 3. In the principal regulations, in regulation 3, - (a) in sub-regulation (1), in clause (c), in sub-clause (ii), for the words "ten per cent", the words "five per cent" shall be substituted; (b) after sub-regulation (1), the following sub-regulation shall be inserted, namely:- "(1A) Where the committee decides to appoint the interim resolution professional as resolution professional or replace the interim resolution professional under section 22 or replace the resolution professional under section 27, it shall obtain the written consent of t....
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....after regulation 8, the following regulation shall be inserted, namely: - "8A. Claims by creditors in a class. (1) A person claiming to be a creditor in a class shall submit claim with proof to the interim resolution professional in electronic form in Form CA of the Schedule. (2) The existence of debt due to a creditor in a class may be proved on the basis of- (a) the records available with an information utility, if any; or (b) other relevant documents, including any- (i) agreement for sale; (ii) letter of allotment; (iii) receipt of payment made; or (iv) such other document, evidencing existence of debt. (3) A creditor in a class may indicate its choice of an insolvency professional, from amongst the three choices provided by the interim resolution professional in the public announcement, to act as its authorised representative.". 9. In the principal regulations, in regulation 9, in sub-regulation (1) and (2), for the words, "proof of claim", the words "claim with proof" shall respectively be substituted; 10. In the principal regulations, in regulation 9A, in sub-regulation....
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....no role in receipt or verification of claims of creditors of the class he represents. (6) The interim resolution professional or the resolution professional, as the case may be, shall provide electronic means of communication between the authorised representative and the creditors in the class. (7) The voting share of a creditor in a class shall be in proportion to the financial debt which includes an interest at the rate of eight per cent per annum unless a different rate has been agreed to between the parties. (8) The authorised representative of creditors in a class shall be entitled to receive fee for every meeting of the committee attended by him in the following manner, namely: - Number of creditors in the class Fee per meeting of the committee (Rs.) 10-100 15,000 101-1000 20,000 More than 1000 25,000 (9) The authorised representative shall circulate the agenda to creditors in a class and announce the voting window at least twenty-four hours before the window opens for voting instructions and keep the voting window open for at least twelve hours. 16B. Committee with only creditors in a class.&nbs....
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....eeting by electronic means to all members of the committee within forty-eight hours of the conclusion of the meeting; and (b) seek a vote of the members who did not vote at the meeting on the matters listed for voting, by electronic voting system in accordance with regulation 26 where the voting shall be kept open for twenty-four hours from the circulation of the minutes, for.". 16. In the principal regulations, in regulation 26, sub-regulation (2) shall be omitted. 17. In the principal regulations, in regulation 27, for the words, "seven days of his appointment", the words "seven days of his appointment, but not later than forty-seventh day from the insolvency commencement date" shall be substituted. 18. In the principal regulations, in regulation 29, in sub-regulation (2), for the words, "approval of the committee", the words "approval of the committee by a vote of sixty-six per cent of voting share of the members" shall be substituted. 19. In the principal regulations, after regulation 30, the following regulation shall be inserted, namely: - "30A. Withdrawal of application. (1) An application for withdra....
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....ent date.". 22. In the principal regulations, in regulation 36, - (a) for sub-regulation (1), the following sub-regulation shall be substituted, namely: - "(1) Subject to sub-regulation (4), the resolution professional shall submit the information memorandum in electronic form to each member of the committee within two weeks of his appointment, but not later than fifty-fourth day from the insolvency commencement date, whichever is earlier." (b) in sub-regulation (4), the words "or a prospective resolution applicant" shall be omitted; 23. In the principal regulations, for regulation 36A, the following regulation shall be substituted, namely: - "36A. Invitation for expression of interest. (1) The resolution professional shall publish brief particulars of the invitation for expression of interest in Form G of the Schedule at the earliest, not later than seventy-fifth day from the insolvency commencement date, from interested and eligible prospective resolution applicants to submit resolution plans. (2) The resolution professional shall publish Form G- (i) in one English and one reg....
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....rom any ineligibility under section 29A to the extent applicable; (d) relevant information and records to enable an assessment of ineligibility under clause (c); (e) an undertaking by the prospective resolution applicant that it shall intimate the resolution professional forthwith if it becomes ineligible at any time during the corporate insolvency resolution process; (f) an undertaking by the prospective resolution applicant that every information and records provided in expression of interest is true and correct and discovery of any false information or record at any time will render the applicant ineligible to submit resolution plan, forfeit any refundable deposit, and attract penal action under the Code; and (g) an undertaking by the prospective resolution applicant to the effect that it shall maintain confidentiality of the information and shall not use such information to cause an undue gain or undue loss to itself or any other person and comply with the requirements under sub-section (2) of section 29. (8) The resolution professional shall conduct due diligence based on the material on record in order....
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....uest for resolution plans shall not require any non-refundable deposit for submission of or along with resolution plan. (5) Any modification in the request for resolution plan or the evaluation matrix issued under sub-regulation (1), shall be deemed to be a fresh issue and shall be subject to timeline under sub-regulation (3). (6) The resolution professional may, with the approval of the committee, extend the timeline for submission of resolution plans. (7) The resolution professional may, with the approval of the committee, re-issue request for resolution plans, if the resolution plans received in response to an earlier request are not satisfactory, subject to the condition that the request is made to all prospective resolution applicants in the final list: Provided that provisions of sub-regulation (3) shall not apply for submission of resolution plans under this sub-regulation.". 25. In the principal regulations, in regulation 37, after clause (c), the following clause shall be inserted, namely: - "(ca) cancellation or delisting of any shares of the corporate debtor, if applicable;". 26. In the principal regulations, in regulati....
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.... for approving or rejecting a resolution plan.". (c) for sub-regulation (4), the following sub-regulation shall be substituted, namely: - "(4) The resolution professional shall endeavour to submit the resolution plan approved by the committee to the Adjudicating Authority at least fifteen days before the maximum period for completion of corporate insolvency resolution process under section 12, along with a compliance certificate in Form H of the Schedule.". 28. In the principal regulations, after regulation 40, the following regulation shall be inserted, namely: - "40A. Model time-line for corporate insolvency resolution process. The following Table presents a model timeline of corporate insolvency resolution process on the assumption that the interim resolution professional is appointed on the date of commencement of the process and the time available is hundred and eighty days: Section / Regulation Description of Activity Norm Latest Timeline Section 16(1) Commencement of CIRP and appointment of IRP .... T Regulation 6(1) Public announcement inviting claims Within 3 Days of Appointment of IRP T+3 Sectio....
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....tion of EoI Submission of EoI At least 15 days from issue of EoI (Assume 15 days) T+90 Provisional List of RAs by RP Within 10 days from the last day of receipt of EoI T+100 Submission of objections to provisional list For 5 days from the date of provisional list T+105 Final List of RAs by RP Within 10 days of the receipt of objections T+115 Regulation 36B Issue of RFRP, including Evaluation Matrix and IM Within 5 days of the issue of the provisional list T+105 Receipt of Resolution Plans At least 30 days from issue of RFRP (Assume 30 days) T+135 Regulation 39(4) Submission of CoC approved Resolution Plan to AA As soon as approved by the CoC T+165 Section 31(1) Approval of resolution plan by AA T=180 AA: Adjudicating Authority; AR: Authorised Representative; CIRP: Corporate Insolvency Resolution Process; CoC: Committee of Creditors; EoI: Expression of Interest; IM: Information Memorandum; IRP: Interim Resolution Professional; RA: Resolution Applicant; RP: Resolution Professional; RFRP: Request for Resolution Plan.". 29. In the principal regulations, in the Schedule, - ....
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....shall submit their claims with proof by electronic means only. All other creditors may submit the claims with proof in person, by post or by electronic means. A financial creditor belonging to a class, as listed against the entry No. 12, shall indicate its choice of authorised representative from among the three insolvency professionals listed against entry No.13 to act as authorised representative of the class [specify class] in Form CA. Submission of false or misleading proofs of claim shall attract penalties. Name and Signature of Interim Resolution Professional : Date and Place : FORM AA WRITTEN CONSENT TO ACT AS RESOLUTION PROFESSIONAL (Under Regulation 3(1A) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016) [Date] From [Name of the insolvency professional] [Registration number of the insolvency professional] [Address of the insolvency professional registered with the Board] To The Committee of Creditors [name of corporate debtor] Subject: Written Consent to act as resolution professional. I, [name], an insolvency professional enrolled with [name of insolve....
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.... [Date] From [Name of the insolvency professional] [Registration number of the insolvency professional] [Registered address of the insolvency professional] To The Interim Resolution Professional [name of corporate debtor] Subject: Written Consent to act as authorized representative. I, [name], an insolvency professional enrolled with [name of insolvency professional agency] and registered with the Board, note that you have proposed to appoint me as the authorized representative of financial creditors in a class [specify class] in the corporate insolvency resolution process of [name of the corporate debtor]. 2. In accordance with regulation 4(A) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, I hereby give my consent to the proposed appointment. 3. I declare and affirm as under: - a. I am registered with the Board as an insolvency professional. b. I am not subject to any disciplinary proceedings initiated by the Board or the Insolvency Professional Agency. ....
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....an be substantiated 6. Details of how and when debt incurred 7. Details of any mutual credit, mutual debts, or other mutual dealings between the corporate debtor and the creditor which may be set-off against the claim 8. Details of any security held, the value of the security, and the date it was given 9. Details of the bank account to which the amount of the claim or any part thereof can be transferred pursuant to a resolution plan 10. List of documents attached to this claim in order to prove the existence and non-payment of claim due to the financial creditor (Signature of financial creditor or person authorised to act on his behalf) [Please enclose the authority if this is being submitted on behalf of the financial creditor] Name in BLOCK LETTERS Position with or in relation to creditor Address of person signing *PAN number, passport, AADHAAR Card or the identity card issued by the Election Commission of India. DECLARATION I, [Name of claimant], currently residing at [insert address], do hereby declare and state as follows: - 1. [Name of c....
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....ir, [Name of the financial creditor], hereby submits this claim in respect of the corporate insolvency resolution process of [name of corporate debtor]. The details for the same are set out below: RELEVANT PARTICULARS 1. Name of the financial creditor 2. Identification number of the financial creditor (If an incorporated body, provide identification number and proof of incorporation. If a partnership or individual, provide identification records of all the partners or the individual) 3. Address and e-mail address of the financial creditor for correspondence. 4. Total amount of claim (in Rs.) 5. Details of documents by reference to which the debt can be substantiated 6. Details of how and when debt incurred 7. Details of any mutual credit, mutual debts, or other mutual dealings between the corporate debtor and the creditor which may be set-off against the claim 8. Details of any security held, the value of the security, and the date it was given 9. Details of the bank account to which the amount of the claim or any part thereof can be transfe....
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....mant) [Note: In the case of company or limited liability partnership, the declaration and verification shall be made by the director/manager/secretary/designated partner and in the case of other entities, an officer authorized for the purpose by the entity.]"; (c) after Form F, the following Form shall be inserted, namely: - "FORM FA APPLICATION FOR WITHDRAWAL OF CORPORATE INSOLVENCY RESOLUTION PROCESS (Under Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016) [Date] To The Adjudicating Authority [Through the Interim Resolution Professional / Resolution Professional] [name of corporate debtor] Subject: Withdrawal of Application admitted for corporate insolvency resolution process of [name of corporate debtor] I, [name of applicant], had filed an application bearing [particulars of application, i.e, diary number/ case number] on [Date of filing] before the Adjudicating Authority under [Section 7 / Section 9/ Section 10] of the Insolvency and Bankruptcy Code, 2016. The said application was admitted by the Adjudicating Authority on [date] bearing [case number]. 2.....
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....nd request for resolution plans to prospective resolution applicants 15. Manner of obtaining request for resolution plan, evaluation matrix, information memorandum and further information 16. Last date for submission of resolution plans 17. Manner of submitting resolution plans to resolution professional 18. Estimated date for submission of resolution plan to the Adjudicating Authority for approval 19. Name and registration number of the resolution professional 20. Name, Address and e-email of the resolution professional, as registered with the Board 21. Address and email to be used for correspondence with the resolution professional 22. Further Details are available at or with 23. Date of publication of Form G Signature of the Resolution Professional Registration Number of the Resolution Professional Registered Address of the Resolution Professional For (Name of the Corporate Debtor) (Date and Place) FORM H COMPLIANCE CERTIFICATE (Under Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Inso....
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...........................) has submitted an affidavit pursuant to section 30(1) of the Code confirming its eligibility under section 29A of the Code to submit resolution plan. The contents of the said affidavit are in order. (iii) the said Resolution Plan has been approved by the CoC in accordance with the provisions of the Code and the CIRP Regulations made thereunder. The Resolution Plan has been approved by [state the number of votes by which Resolution Plan was approved by CoC] % of voting share of financial creditors after considering its feasibility and viability and other requirements specified by the CIRP Regulations. (iv) The voting was held in the meeting of the CoC on [state the date of meeting] where all the members of the CoC were present. or I sought vote of members of the CoC by electronic voting system which was kept open at least for 24 hours as per the regulation 26. [strike off the part that is not relevant] 5. The list of financial creditors of the CD [state the name of CD] being members of the CoC and distribution of voting share among them is as under: Sl. No. Name of Creditor Voting Share (%) Voting for Resolution Plan (Voted for /....
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....esolution Applicant meets the criteria approved by the CoC having regard to the complexity and scale of operations of business of the CD? Section 29A Whether the Resolution Applicant is eligible to submit resolution plan as per final list of Resolution Professional or Order, if any, of the Adjudicating Authority? Section 30(1) Whether the Resolution Applicant has submitted an affidavit stating that it is eligible? Section 30(2) Whether the Resolution Plan: (a) provides for the payment of insolvency resolution process costs? (b) provides for the payment of the debts of operational creditors? (c) provides for the management of the affairs of the Corporate debtor? (d) provides for the implementation and supervision of the resolution plan? (e) contravenes any of the provisions of the law for the time being in force? Section 30(4) Whether the Resolution Plan (a) is feasible and viable, according to the CoC? (b) has been approved by the CoC with 66% voting share? Section 31(1) Whe....
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....ment of Authorised Representative, if necessary T+23 Regulation 17(1) Filing of Report Certifying Constitution of CoC T+23 Section 22(1) and regulation 17(2) First Meeting of the CoC T+30 Regulation 35A Determination of fraudulent and other transactions T+115 Regulation 27 Appointment of two Registered Valuers T+47 Regulation 36 (1) Submission of Information Memorandum to CoC T+57 Regulation 36A Invitation of EoI T+75 Publication of Form G T+75 Provisional List of Resolution Applicants T+100 Final List of Resolution Applicants T+115 Regulation 36B Issue of Request for Resolution Plan, which includes Evaluation Matrix and Information Memorandum to Resolution Applicants T+105 Section 30(6) / Regulation 39(4) Submission of CoC approved Resolution Plan T+165 Section 31(1) Approval of Resolution Plan T=180 11. The time ....