TaxTMI 
TaxTMI 
Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019
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.... (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 date till repayment of interim finance, whichever is lower; (vii) the amount repayable to contributories under sub-regulation (3) of regulation 2A; (viii) any other cost incurred by the liquidator whi....
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....en 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 committee of creditors under regulation 39D of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. (2) In cases other than those covered under sub-regulation (1), the liquidator shall be entitled to a fee- (a) at the same rate as the resolution professional was entitled to during the corporate insolvency resolution process, for the period of compromise....
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....l 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 creditor does not intimate its decision within thirty days from the liquidation commencement date, the assets covered under the security interest shall be presumed to be part of the liquidation estate. (2) Where a secured creditor proceeds to realise its security interest, it shall pay as much towards the amount payable under clause (a) and sub-clause (i) of clause (b) of sub-section (1) of section 53, as it would have shared in case it had relinquished the security interest.". 8. In the principal regulations, after regulation 31, the following regulation shall be inserted, namely: "31A. Stakeholders' consultation committee. (1) The liquidator shall constitute....
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....vene 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. (7) The liquidator shall chair the meetings of consultation committee and record deliberations of the meeting. (8) The liquidator shall place the recommendation of committee of creditors made under subregulation (1) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, before the consultation committee for its information. (9) The consultation committee shall advise the liquidator, by a vote of not less than sixty-six percent of the representatives of the consultation committee, present and voting. (10) The advice of the consultation committee shall not be binding on the liquidator: Provided that where the liquidator takes a decision different from the advice given by the consultation committee, he shall record the reasons for the same in writing.". 9. In principal regulations, after regulation 32, the following regulation shall be inserted, n....
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.... the sale is attempted under sub-regulation (1) of regulation 32A, the liquidation process may take an additional period up to ninety days."; (ii) in sub-regulation (2), for the words "two years", the words "one year" shall be substituted. 13. In the principal regulations, in regulation 45, for sub-regulation (3), the following subregulation shall be substituted, namely: - "(3) The liquidator shall submit an application along with the final report and the compliance certificate in form H to the Adjudicating Authority for - (a) closure of the liquidation process of the corporate debtor where the corporate debtor is sold as a going concern; or (b) for the dissolution of the corporate debtor, in cases not covered under clause (a).". 14. In the principal regulations, after regulation 46, the following regulation shall be inserted, namely: - "47. Model time-line for liquidation process. The following Table presents a model timeline of liquidation process of a corporate debtor from the liquidation commencement date, assuming that the process does not include compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013) or sale under regulation ....
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....0 (1) Application to AA for Disclaimer of onerous property 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 fails at the reserve price, the liquidator may reduce the reserve price by up to twenty-five percent of such value to conduct subsequent auction. (4B) Where an auction fails at reduced....
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.... 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 contribution 14 Date of realisation of uncalled capital/unpaid capital contribution 15 Date of opening of liquidation account with Bank A/c details 16 Date of constitution of Consultation Committee 17 No. of meetings of consultation committee held 18 Date of submission of list of stakeholders to AA 19 Date of public announcement of list of stakeholders 20 Date of filing of preliminary report & assets memorandum to AA 21 Fair value 22 Liquidation value 23 Date of public announcement for auction (please add additional rows, if required) 24 Date of order of AA to dispense with the public announcement for Auction 25 Date of permission of AA for physical Auction 26 Date of permission of AA for private sale 27 Date of pe....
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....nducted as per the timeline indicated in regulation 47 as under: Section of the Code / Regulation No. Description of Task Timeline as per regulation 47 Actual Timeline (1) (2) (3) (4) Section 33 Commencement of LCD and Appointment of Liquidator T T 6. The following are deviations /non-compliances with the provisions of the Insolvency and Bankruptcy Code, 2016, regulations made, or circulars issued there under (If any deviation/ non-compliances were observed, please state the details and reasons for the same): Sl. No. Deviation/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 transact....