The Insolvency and Bankruptcy Board of India (“IBBI”) has notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2019 (“Amendment Regulations”) in order to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“Regulations”) issued under the Insolvency and Bankruptcy Code, 2016 (“IBC”).  

The key amendments introduced in the Regulations by the Amendment Regulations are as follows:  

• Introduction of Regulation 25A: Regulation 25A has been introduced to provide that the authorised representative casts his vote in respect of each financial creditor or on behalf of all financial creditors he represents in accordance with the provisions of sub-section (3) or sub-section (3A) of section 25A of the IBC.  

Introduction of sub-regulation (ba) in regulation 37: A new sub-regulation (ba) has been introduced in regulation 37 to provide that one of the measures which may be provided in a resolution shall be restructuring of the corporate debtor by way of merger, amalgamation and demerger.  

Substitution of sub-regulation 38(1): Sub-regulation 38(1) has been substituted to include a provision in respect of amounts payable under a resolution plan to dissenting financial creditors to be paid in priority over financial creditors who voted for the resolution plan.  

• Insertion of Regulation 40B: Regulation 40B has been introduced to compile and consolidate all the forms to be filed by the interim resolution professional or resolution professional, as the case may be.

This update has been contributed by Aastha (Partner) and Arhat Chhabra (Associate).