The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a notification dated August 5, 2020 notifying Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 (“Third Amendment Regulations”) prescribed under the provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”).
The key amendments are as follows:
a. In Regulation 4 (2)(b) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”), after the table, a clarification has been inserted wherein, it has been provided that where a liquidator realises any amount, but does not distribute the same, the liquidator shall be entitled to a fee corresponding to the amount realised by him. Further, where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him.
b. In Regulation 37(6) of the Liquidation Regulations, the word “of” has been omitted and now, the said Regulation shall be read as under:
“Where the secured asset is realized under sub-regulation (4), the liquidator shall bear the cost incurred to identify the buyer under sub-regulation (2)”
c. In Regulation 47 of the Liquidation Regulations i.e. the Table of Model Timeline for Liquidation Process:
i. in serial number 4, in column 2, “Regulations 19 and 20” have been inserted and;
ii. in serial number 18, in column 4, the word “disclosure” has been substituted for the word “disclaimer”.
Please find a copy of the Third Amendment Regulations here.
This update has been contributed by Pooja Chakrabarti (Partner) and Kiran Sharma (Associate).
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