IBC: Second Amendment to IBBI CIRP Regulations
IBBI CIRP Regulations Amendment 2024
On 24 September 2024, the Insolvency and Bankruptcy Board of India (IBBI) notified amendments (Amendment) to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations (CIRP Regulations) (please read the Amendment here).
The Amendment, which is effective from 24 September 2024, provides for the following key changes:
- Regulation 16A (1) of the CIRP Regulations: this regulation provides for the filing of form CA for appointment of an authorised representative for a class of creditors. The Interim Resolution Professional (IRP) selects an insolvency professional, chosen by the majority of creditors in that class, to represent them in the committee of creditors. The Amendment now provides that if any creditor submits this form after the public announcement date, the IRP will not consider it.
- Regulation 16A (2) of the CIRP Regulations: this regulation provides for the IRP to apply to the insolvency court for appointment of the authorised representative selected by the class of creditors. The Amendment adds that while this request is being processed by the insolvency court, the insolvency professional chosen under Regulation 16A (1) will serve as an interim representative. This interim representative can attend committee of creditors’ meetings and will have the same rights and duties as an authorised representative would.
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