TaxTMI 
TaxTMI 
Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019
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....e principal regulations), in regulation 2, in sub-regulation (1)- (i) after clause (b), the following clause shall be inserted, namely: - '(ba) "consultation committee" means the stakeholders' consultation committee constituted under sub-regulation (1) of regulation 31A;'; (ii) for clause (ea), the following clause shall be substituted, namely:- '(ea) "liquidation cost" under clause (16) of section 5 means- (i) fee payable to the liquidator under regulation 4; (ii) remuneration payable by the liquidator under sub-regulation (1) of regulation 7; (iii) costs incurred by the liquidator under sub-regulation (2) of regulation 24; (iv) costs incurred by the liquidator for preserving and protecting the assets, properties, effects and actionable claims, including secured assets, of the corporate debtor; (v) costs incurred by the liquidator in carrying on the business of the corporate debtor as a going concern; (vi) interest on interim finance for a period of twelve months or for the period from the liquidation commencement d....
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....ia Act, 1934 (2 of 1934) as part of liquidation cost. 2B. Compromise or arrangement. (1) Where a compromise or arrangement is proposed under section 230 of the Companies Act, 2013 (18 of 2013), it shall be completed within ninety days of the order of liquidation under sub-sections (1) and (4) of section 33. (2) The time taken on compromise or arrangement, not exceeding ninety days, shall not be included in the liquidation period. (3) Any cost incurred by the liquidator in relation to compromise or arrangement shall be borne by the corporate debtor, where such compromise or arrangement is sanctioned by the Tribunal under sub-section (6) of section 230: Provided that such cost shall be borne by the parties who proposed compromise or arrangement, where such compromise or arrangement is not sanctioned by the Tribunal under sub-section (6) of section 230.". 4. In the principal regulations, for regulation 4, the following regulation shall be substituted, namely: "4. Liquidator's fee. (1) The fee payable to the liquidator shall be in accordance with the decision taken by the committ....
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....ent date; and (b) provide the last date for submission or updation of claims, which shall be thirty days from the liquidation commencement date.". 6. In the principal regulations, for regulation 16, the following regulation shall be substituted, namely: - "16. Submission of claim. (1) A person, who claims to be a stakeholder, shall submit its claim, or update its claim submitted during the corporate insolvency resolution process, including interest, if any, on or before the last date mentioned in the public announcement. (2) A person shall prove its claim for debt or dues to him, including interest, if any, as on the liquidation commencement date.". 7. In the principal regulations, after regulation 21, the following regulation shall be inserted, namely: "21A. Presumption of security interest. (1) A secured creditor shall inform the liquidator of its decision to relinquish its security interest to the liquidation estate or realise its security interest, as the case may be, in Form C or Form D of Schedule II: Provided that, where a secured....
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....editors admitted during the liquidation process is at least 25 % of liquidation value Number of creditors in the category, subject to a maximum of 2 Shareholders or partners, if any 1 (3) The liquidator may facilitate the stakeholders of each class to nominate their representatives for inclusion in the consultation committee. (4) If the stakeholders of any class fail to nominate their representatives, the required number of stakeholders with the highest claim amount in that class shall be included in the consultation committee. (5) Subject to the provisions of the Code and these regulations, representatives in the consultation committee shall have access to all relevant records and information as may be required to provide advice to the liquidator under sub-regulation (1). (6) The liquidator shall convene a meeting of the consultation committee when he considers it necessary and shall convene a meeting of the consultation committee when a request is received from at least fifty-one percent of representatives in the consultation committee.&nb....
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....e, he shall proceed to sell the assets of the corporate debtor under clauses (a) to (d) of regulation 32.". 10. In the principal regulations, in regulation 35, in sub-regulation (2), for "In cases not covered under sub-regulation (1), the liquidator shall within seven days", the following shall be substituted, namely: - "In cases not covered under sub-regulation (1) or where the liquidator is of the opinion that fresh valuation is required under the circumstances, he shall within seven days". 11. In the principal regulations, in regulation 42, in sub-regulation (2), for the words "six months", the words "ninety days" shall be substituted. 12. In the principal regulations, in regulation 44,- (i) for sub-regulation (1), the following sub-regulation shall be substituted, namely: - "(1) The liquidator shall liquidate the corporate debtor within a period of one year from the liquidation commencement date, notwithstanding pendency of any application for avoidance of transactions under Chapter III of Part II of the Code, before the Adjudicating Authority or any action thereof: Provided that where the sale is ....
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....sp; Within 14 days of submission of claim T + 44 6 Reg. 30 Verification of claims received under regulation 12(2)(b) Within 30 days from the last date for receipt of claims T + 60 7 Reg. 31A Constitution of SCC Within 60 days of LCD T + 60 8 Section 40 (2) Intimation about decision of acceptance/ rejection of claim Within 7 days of admission or rejection of claim T + 67 9 Reg. 31 (2) Filing the list of stakeholders and announcement to public Within 45 days from the last date of receipt of claims T + 75 10 Section 42 Appeal by a creditor against the decision of the liquidator &nbs....
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.... Within 6 months from the LCD T + 6 months 18 Reg.10 (3) Notice to persons interested in the onerous property or contract At least 7 days before making an application to AA for disclosure. 19 Reg. 44 Liquidation of corporate debtor. Within one year T + 365 20 Reg. 46 Apply to AA for order on unclaimed proceeds of liquidation or undistributed assets. Before dissolution order 21 Sch-1 Sl. No 12 Time period to H1 bidder to provide balance sale consideration Within 90 days of the date of invitation to provide the balance amount. [AA: Adjudicating Authority, LCD: Liquidation Commencement Date, SCC: Stakeholders' Consultation Committee]" 15. In the principal regulations, in Schedule I,- (i) in Paragraph 1, for clause (4), the following shall be substituted, namely: - "(4) The reserve price shall be the value of the asset arrived at in accordance with regulation 35. (4A) Where an auction fail....
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....on Process of [name of the corporate debtor (CD)]. 2. The details of the Liquidation Process are as under: Sl. No. Particulars Description (1) (2) (3) 1 Name of the corporate debtor 2 Case No. & NCLT Bench 3 Date of initiation of liquidation 4 Date of appointment of liquidator 5 Date of commencement of CIRP 6 Name of RP during CIRP and his registration No. as IP 7 Name of Liquidator and his registration No. as IP 8 Date of Publication of Public Announcement under Form B 9 Date of Intimation to Registry and Information Utility, if any, about commencement of Liquidation 10 Date of handover of charge by RP 11 Date of submission of compliance, if any, directed by AA in the liquidation order and its particulars 12 Date of appointment of registered valuers, if any 13 Date of notice for uncalled capital/unpaid capital co....
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....¢ Income Tax Dept • Inspector of Factory • GST/VAT • Others 44 Date of application to AA as per Reg 46(1) 45 Date of transfer of undistributed/unclaimed assets or proceeds of liquidation to public Account of India 46 Date of intimation as per Reg 46(3) 47 Date of Final Report to AA (prior to dissolution application) 3. The details of the assets as per Asset Memorandum and Final Sale Report are as under: Sl. No. Assets Mode of Sale Estimated Liquidation Value Realisation Amount (Rs.) Date of Transfer to Liquidation Account (1) (2) (3) (4) (5) (6) 4. (a) Liquidation value of the liquidation estate: (b) Amount realised from sale of liquidation estate: (c) The amounts distributed to stakeholders as per section 52 or 53 of ....
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....Noncompliance observed Section of the Code / Regulation No. / Circular No. Reasons Whether rectified or not (1) (2) (3) (4) (5) 1 2 3 7. The dissolution application has been filed [before expiry of the period of one year] / [after expiry of one year]. Please state details of any extension sought with the reason and granted: 8. The details of application(s) filed / pending in respect of avoidance of transactions. Sl. No. Type of Transaction Date of Filing with Adjudicating Authority Date of Order of the Adjudicating Authority Brief of the Order (1) (2) (3) (4) (5) 1 Preferential transactions under section 43 2 Undervalued transactions under section 45 3 Extortionate credit transactions under section 50 4 Fraudulent transactions under section 66 9. All undisch....