Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2021.
These amended regulations shall apply to every CIRP ongoing or commencing on or after the date of coming into force of these regulations which is 14.07.2021.
Major Change No. 1/In case of Conflict of Interest, you can not continue as the IRP or RP
IRP or RP, who is a director or a partner of an IPE can not continue as the IRP or RP, as the case may be, in a CIRP, if the IPE or any other partner or director of such IPE represents any other stakeholder in that CIRP.
IBC Law Reporter Comment on Change No. 1:
Representation can be in any form like IPE/Directors/Partner can act as an advisor, lawyer, valuers, etc. Therefore, the word “REPRESENTS” needs an explanation. The scope of “any other stakeholder” should also be restrcited.
Major Change No. 2/Disclosure of change in name and address of CD
Where a CD has changed its name or registered office address during the period of 2 years preceding the ICD, the IRP or RP, as the case may be, shall disclose all the former name(s) and registered office address(es) so changed along with the current name and registered office address in every communication, record, proceeding or any other document.
IBC Law Reporter Comment on Change No. 2:
a) This regulation seems to add a new responsibility on the IPs specially mentioning the old name & registered office on ALL the communications, records, proceedings, or any other documents.
b) Also, it raises the question that whether to mention the old name & registered office on all the Court applications, minutes, notices, emails, letters & communications? #This is huge.
Major Change No. 3/Appointment of professional ONLY if services of such professional is not available with the CD
The IRP or RP, as the case may be, may appoint any professional(s) to assist him in the discharge of his duties in the conduct of the CIRP, if he is of the opinion that the services of such professionals are required and such services are not available with the CD.
IBC Law Reporter Comment on Change No. 3:
This seems to be a necessary change considering the huge CIRP Costs burden on the CDs.
Major Change No. 4/Filing of new from CIRP-8 intimating details of PUEF transactions
The RP shall file Form CIRP 8 intimating details of his opinion and determination under regulation 35A, on or before the 145th day of the ICD.
IBC Law Reporter Comment on Change No. 4:
The format of CIRP-8 is not part of the amended regulations. Whether it will be notified separately?
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