Insolvency and Bankruptcy Board of India

Description

Context

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations.

About the amendment:

For effective monitoring, the amendment requires the RP to file Form CIRP 8 on the electronic platform of the Board, intimating details of his opinion and determination in respect of avoidance transactions.

Aim of the amendments:

amendments were aimed at enhancing the discipline, transparency, and accountability in corporate insolvency proceedings.

Year of Enactment	2016
Regulator	Insolvency and Bankruptcy Board of India · 10 Member Board · Has RBI and Government representation
Entities created	· Insolvency Professional Agencies (IPAs); Insolvency · Resolution Professionals (IRPs); · Information Utilities
Adjudicators	National Company law tribunal for · Corporate entities and LLP etc. Debt Recovery Tribunal for · For non-corporate entities such as individuals, partnership funds etc.
Required Time	· 180 days to resolve insolvency · 270 days in specific circumstances
Due Sharing ( Sharing of the Proceeds received after liquidation with the different claimants)	· Cost of Insolvency Process · Workers, Secured Creditors · Employee Wages · Unsecured Creditors · Government due · Any other remaining debt (This remains the order of Priority)
About the Different Entities
Information Utilities	· Process the financial information needed for the bankruptcy process
Insolvency Professional	· To handle and proceed the bankruptcy process
Insolvency Professional Agencies	· Provide code of conduct and rules to be followed by Insolvency Professional

Admission of the 1322 cases by the National Company Law Tribunal
Disposition of the more than 4500 cases at pre-admission stage.
Fear in the debtor of proceeding at National Company Law Tribunal leading to timely payment of debt
Transparent procedure of the successful completion of debt resolution
Enhanced the ease of doing business rank of India
Average time taken for the resolution is within 270 days which is significant improvement from 3-4 years taken in earlier days.
Improvement in the recovery rates for financial creditors
2017 amendment had allowed the treatment of homebuyers at par with financial creditors thus protecting the interest of homebuyers.