TMI BlogInsolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... s) Regulations, 2016 , (hereinafter referred to as the principal regulations), in regulation 2, in sub-regulation (1) - (i) after clause (b), the following clause shall be inserted, namely: - (ba) consultation committee means the stakeholders consultation committee constituted under sub-regulation (1) of regulation 31A; ; (ii) for clause (ea), the following clause shall be substituted, namely:- (ea) liquidation cost under clause (16) of section 5 means- (i) fee payable to the liquidator under regulation 4; (ii) remuneration payable by the liquidator under sub-regulation (1) of regulation 7; (iii) costs incurred by the liquidator under sub-regulation (2) of regulation 24; (iv) costs incurred by the liquidator for preserving and protecting the assets, properties, effects and actionable claims, including secured assets, of the corporate debtor; (v) costs incurred by the liquidator in carrying on the business of the corporate debtor as a going concern; (vi) interest on interim finance for a period of twelve months or for the period from the liquidation commencement d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contributions made under the plan approved under sub-regulation (3) of regulation 39B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 or contributions made under sub-regulation (1), as the case may be, shall be deposited in a designated escrow account to be opened and maintained in a scheduled bank, within seven days of the passing of the liquidation order. (3) The amount contributed under sub-regulation (2) shall be repayable with interest at bank rate referred to in section 49 of the Reserve Bank of India Act, 1934 (2 of 1934) as part of liquidation cost. 2B. Compromise or arrangement. (1) Where a compromise or arrangement is proposed under section 230 of the Companies Act, 2013 (18 of 2013), it shall be completed within ninety days of the order of liquidation under sub-sections (1) and (4) of section 33. (2) The time taken on compromise or arrangement, not exceeding ninety days, shall not be included in the liquidation period. (3) Any cost incurred by the liquidator in relation to compromise or arrangement shall be borne by the corporate debtor, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst 1 crore 2.50 1.88 0.94 On the next 9 crore 1.88 1.40 0.71 On the next 40 crore 1.25 0.94 0.47 On the next 50 crore 0.63 0.48 0.25 On further sums distributed 0.13 0.10 0.05 (3) Where the fee is payable under clause (b) of sub-regulation (2), the liquidator shall be entitled to receive half of the fee payable on realisation only after such realised amount is distributed. Clarification: Regulation 4 of these regulations, as it stood before the commencement of the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019 shall continue to be applicable in relation to the liquidation processes already commenced before the coming into force of the said amendment Regulation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, to advise him on the matters relating to sale under regulation 32. (2) The composition of the consultation committee under sub-regulation (1) shall be as shown in the Table below: Table Class of Stakeholders Description Number of Representatives (1) (2) (3) Secured financial creditors, who have relinquished their security interests under section 52 Where claims of such creditors admitted during the liquidation process is less than 50% of liquidation value Number of creditors in the category, subject to a maximum of 2 Where claims of such creditors admitted during the liquidation process is at least 50% of liquidation value Number of creditors in the category, subject to a maximum of 4 Unsecured financial creditors Where claims of such creditors admitted during the liquidation process is less than 25% of liquidation value Where clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Persons) Regulations, 2016, before the consultation committee for its information. (9) The consultation committee shall advise the liquidator, by a vote of not less than sixty-six percent of the representatives of the consultation committee, present and voting. (10) The advice of the consultation committee shall not be binding on the liquidator: Provided that where the liquidator takes a decision different from the advice given by the consultation committee, he shall record the reasons for the same in writing. . 9. In principal regulations, after regulation 32 , the following regulation shall be inserted, namely:- 32A. Sale as a going concern. (1) Where the committee of creditors has recommended sale under clause (e) or (f) of regulation 32 or where the liquidator is of the opinion that sale under clause (e) or (f) of regulation 32 shall maximise the value of the corporate debtor, he shall endeavour to first sell under the said clauses. (2) For the purpose of sale under sub-regulation (1), the group of assets and liabilities of the corporate debtor, as identified by the committee of credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) The liquidator shall submit an application along with the final report and the compliance certificate in form H to the Adjudicating Authority for - (a) closure of the liquidation process of the corporate debtor where the corporate debtor is sold as a going concern; or (b) for the dissolution of the corporate debtor, in cases not covered under clause (a). . 14. In the principal regulations, after regulation 46 , the following regulation shall be inserted, namely: - 47. Model time-line for liquidation process. The following Table presents a model timeline of liquidation process of a corporate debtor from the liquidation commencement date, assuming that the process does not include compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013) or sale under regulation 32A: Model Timeline for Liquidation Process Sl. No. Section / Regulation Description of Task Norm Latest Timeline (Days) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Filing the list of stakeholders and announcement to public Within 45 days from the last date of receipt of claims T + 75 10 Section 42 Appeal by a creditor against the decision of the liquidator Within 14 days of receipt of such decision T + 81 11 Reg. 13 Preliminary report to the AA Within 75 days of LCD T + 75 12 Reg. 34 Asset memorandum Within 75 days of LCD T + 75 13 Reg. 15 (1), (2), (3), (4) and (5), and 36 Submission of progress reports to AA; Asset Sale report to be enclosed with eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Before dissolution order 21 Sch-1 Sl. No 12 Time period to H1 bidder to provide balance sale consideration Within 90 days of the date of invitation to provide the balance amount. [AA: Adjudicating Authority, LCD: Liquidation Commencement Date, SCC: Stakeholders Consultation Committee] 15. In the principal regulations, in Schedule I, - (i) in Paragraph 1, for clause (4), the following shall be substituted, namely: - (4) The reserve price shall be the value of the asset arrived at in accordance with regulation 35. (4A) Where an auction fails at the reserve price, the liquidator may reduce the reserve price by up to twenty-five percent of such value to conduct subsequent auction. (4B) Where an auction fails at reduced price under clause (4A), the reserve price in subsequent auctions may be further reduced by not more than ten percent at a time. ; (ii) for paragraph 12, the following paragraphs shall be substituted, namely: - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor 2 Case No. NCLT Bench 3 Date of initiation of liquidation 4 Date of appointment of liquidator 5 Date of commencement of CIRP 6 Name of RP during CIRP and his registration No. as IP 7 Name of Liquidator and his registration No. as IP 8 Date of Publication of Public Announcement under Form B 9 Date of Intimation to Registry and Information Utility, if any, about commencement of Liquidation 10 Date of handover of charge by RP 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the secured creditor 29 Modified list of stakeholders and date of submission to AA 30 Date of first realisation 31 Date of second realisation 32 Date of first distribution 33 Date of second distribution 34 Date of submission of Quarterly Progress Report-I (FY-1) 35 Date of submission of Asset Sales Report to AA 36 Date of submission of Quarterly Progress Report-II 37 Date of submission of Quarterly Progress Report-III 38 Date of submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. (a) Liquidation value of the liquidation estate: (b) Amount realised from sale of liquidation estate: (c) The amounts distributed to stakeholders as per section 52 or 53 of Code are as under: (Amount in Rs. lakh) Sl. No. Stakeholders* under section 53 (1) Amount Claimed Amount Admitted Amount Distributed Amount Distributed to the Amount Claimed (%) Remarks (1) (2) (3) (4) (5) (6) (7) 1 (a): CIRP Costs 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) (2) (3) (4) Section 33 Commencement of LCD and Appointment of Liquidator T T 6. The following are deviations /non-compliances with the provisions of the Insolvency and Bankruptcy Code, 2016, regulations made, or circulars issued there under (If any deviation/ non-compliances were observed, please state the details and reasons for the same): Sl. No. Deviation/Noncompliance observed Section of the Code / Regulation No. / Circular No. Reasons Whether rectified or not (1) (2) (3) (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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