New Amendments in IBBI Regulations: Important Points

On 15th June 2022, the Insolvency Bankruptcy Board of India (IBBI) amended the insolvency regulations.

What do the new amendments state?

  • According to the new amendments, creditors must file all information about all liabilities and assets that are being held by their corporate debtors, as well as all other financial information that is required when starting a procedure of corporate insolvency.
  • Also, operational creditors must file GST return copies as well as e-way bills as a form of evidence of their defaults and debts.
  • The complaint mechanism for enforcement and redressal has also been changed so that redressal processes can be speeded up and extra burden is not placed on the shoulders of the various service providers.
  • The rules that were amended also have provisions so that delays can be shortened and ensure quick enforcement of various mechanisms that are result-oriented.
  • The amended rules also talk about the avoidance applications that have to be filed with the Adjudicating Authority after the corporate insolvency resolution process (CIRP) is closed.
  • This new amendment defines the dissimilarity in valuations while CIRP is undergoing and allows the creditors’ committee to place an appeal to the resolution specialist about the third valuer’s appointment.

The amended rules have already come into effect.

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