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Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019
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..... These regulations shall apply to insolvency resolution process for personal guarantors to corporate debtors. 3. Definitions. In these regulations, unless the context otherwise requires, - (a) "associate" in relation to a creditor, a resolution professional or professionals engaged by resolution professional, as the case may be, shall have the same meaning as assigned to it in relation to a debtor in sub-section (2) of section 79; (b) "Code" means the Insolvency and Bankruptcy Code, 2016 (31 of 2016); (c) "corporate debtor" means a corporate person for whom the guarantor has given a personal guarantee; (d) "electronic means" means an authorised and secured computer programme which is capable of producing confirmation of sending communication to the participant entitled to receive such communication at the last electronic mail address provided by such participant and keeping record of such communication. (e) "form" means a form appended to these regulations; (f) "participant" means a person entitled to attend a meeting of creditors and includes a creditor, the guarantor, the resolution professional, and any other person authorised through a resolution by creditors to atten....
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....er section 94 or 95 on behalf of a guarantor or a creditor, as the case may be, shall provide a written consent in Form A to the Adjudicating Authority before his appointment as resolution professional in a resolution process. 5. Preservation of records. The resolution professional shall preserve a physical as well as an electronic copy of the records relating to resolution process of the guarantor as per the record retention schedule, as may be communicated by the Board in consultation with insolvency professional agencies. 6. Debt counselling. Debt counselling in relation to resolution process may be provided to a guarantor by such person as may be recognised by the Board or the Central Government, as the case may be. CHAPTER III REGISTRATION OF CLAIMS 7. Submission and verification of claim. (1) A creditor shall submit its claim along with proof to the resolution professional in Form B, on or before the last date mentioned in the public notice issued under sub-section (1) of section 102. (2) The creditor shall bear the costs relating to submission of the claim, including proof, under these regulations. (3) A creditor may prove its claim on the basis of- (a) records ....
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....e a certified copy of the list of creditors with the Adjudicating Authority along with the repayment plan. 10. Statement of affairs. (1) The resolution professional shall prepare a statement of affairs of the guarantor for the purposes of clause (b) of sub-section (3) of section 107. (2) The statement of affairs shall include the following information of the guarantor - (a) assets and liabilities for the preceding three financial years and the current financial year; (b) details of the excluded assets and excluded debts; (c) income statement for the preceding three financial years and the current financial year; (d) income-tax returns filed by the guarantor, if any, for the preceding three financial years; (e) creditor wise amount due, broken up into secured and unsecured debts for the preceding three financial years; (f) details of debt owed by guarantor to his associates for the preceding three financial years; (g) guarantees given in relation to any of his debts, and whether any of the guarantors is an associate of the guarantor; and (h) details of the financial statements for the business owned by the guarantor, or of the firm in which he is a partner, as the....
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....) state the process and the manner of casting vote by such means; (b) provide the login ID and the details of a facility for generating password for access to the electronic means for casting vote in a secure manner; and (c) provide contact details of the person who shall address the queries connected with the electronic means. 13. Quorum. (1) A meeting of creditors shall be quorate if creditors representing at least thirty-three percent of voting share are present in person, by proxy or through video conferencing: Provided that the creditors in a meeting may modify the percentage of voting share required for quorum in respect of any future meetings of the creditors. (2) Where a meeting of creditors could not be held for want of quorum, unless the creditors have previously decided otherwise, the meeting shall automatically stand adjourned to the same time and place on the next day and on that day, no quorum shall be required. 14. Conduct of meeting. (1) The resolution professional shall preside over the meeting of creditors. (2) At the commencement of a meeting, the resolution professional shall take a roll call, when every participant, including those attending by proxy o....
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.... a proxy to attend and vote on its behalf. (2) For the purpose of sub-regulation (1), a creditor shall deliver Form C, duly completed to the resolution professional at least twenty-four hours prior to the meeting of creditors. (3) A proxy may vote by electronic means on behalf of the creditor. CHAPTER V REPAYMENT PLAN 17. Contents of repayment plan. (1) The repayment plan shall provide the following - (a) the term of the repayment plan and its implementation schedule, including the amounts to be repaid and dates of repayment to creditors; (b) the source of funds that will be used to pay resolution process costs and that such payment shall be made in priority over any creditor; (c) a minimum budget for the duration of the repayment plan, to cover the reasonable expenses of the guarantor and members of his immediate family to the extent they are dependent on him, provided that at least ten percent of the realisable income of the guarantor shall be utilised for repayment of debts; (d) financing required for implementation of the repayment plan; (e) if the guarantor has any business, the manner in which it is proposed to be conducted during the course of the repayment plan, ....
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.... or 112, as the case may be, with the Adjudicating Authority on or before completion of one hundred and twenty days from the resolution process commencement date. (2) The resolution professional shall provide the copies of the documents filed with the Adjudicating Authority under sub-regulation (1) to the guarantor and the creditors, within three days from the date of such filing. 20. Breach of repayment plan by the guarantor. (1) If in the opinion of the resolution professional, the guarantor has failed in implementation of the repayment plan, the resolution professional shall, within three days of knowledge of such failure, issue a notice to the guarantor identifying the failure and requiring him, within fifteen days of receipt of the notice, to- (a) address such failure if it can be addressed, or (b) provide an explanation for the failure. (2) If the guarantor, within the period specified under sub-regulation (1), - (a) addresses the failure in implementation of the repayment plan; or (b) provides a satisfactory explanation for such failure, the resolution professional shall report the failure to creditors within seven days of the date of failure addressed or explanatio....
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....fessional. (d) I am eligible to be appointed as resolution professional of the guarantor under regulation 3 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 and other applicable provisions of the Code and regulations. (e) I shall make the disclosures in accordance with the code of conduct for insolvency professionals as set out in the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. (f) I am having the following processes in hand: Sl. No. Role as No. of processes on the date of consent 1 Interim Resolution Professional 2 Resolution Professional of: a. Corporate debtors b.Personal guarantors, individuals or partnership firms 3 Liquidator of: a. Liquidation Process b. Voluntary Liquidation Process 4 Bankruptcy Trustee 5 Authorised Representative 6 Any other (please state) Date: Place: (Signature of Insolvency Professional) Registration No.….. FORM B CLAIM WITH PROOF BY A CREDITOR (Under regulation 7(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate D....
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....arantor Firms in which guarantor is a partner Bank account details of the guarantor Name, age and address of spouse, children, parents and siblings of the guarantor Signature of creditor or person authorised to act on his behalf [Please enclose the authorisation document if this form is being submitted on behalf of a creditor] Name in block letters Address of person signing DECLARATION I, [name of creditor], currently residing at [insert address], hereby declare and state as follows:- 1. [Name of guarantor], the guarantor was, at the resolution process commencement date, being the [date] of [year], indebted to me to the sum of Rs. [insert amount of claim]. 2. In respect of my claim of the said sum or any part thereof, I have relied on the following documents: (a) (b) (c) (d) . . . 3. The aforesaid documents are true, valid and genuine to the best of my knowledge, information and belief. 4. In respect of the said sum or any part thereof, I have not, nor has any person by my order, to my knowledge or belief, for my use, had or received any manner of satisfaction or security whatsoever, save and except the following- [Please state details of....