TMI BlogInsolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... rantors to Corporate Debtors) Regulations, 2019. (2) They shall come into force from the 1st day of December, 2019. 2. Application. These regulations shall apply to insolvency resolution process for personal guarantors to corporate debtors. 3. Definitions. In these regulations, unless the context otherwise requires, - (a) associate in relation to a creditor, a resolution professional or professionals engaged by resolution professional, as the case may be, shall have the same meaning as assigned to it in relation to a debtor in sub-section (2) of section 79; (b) Code means the Insolvency and Bankruptcy Code, 2016 (31 of 2016); (c) corporate debtor means a corporate person for whom the guarantor has given a personal guarantee; (d) electronic means means an authorised and secured computer programme which is capable of producing confirmation of sending communication to the participant entitled to receive such communication at the last electronic mail address provided by such participant and keeping record of such communication. (e) form means a form appended to these regulations; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) is not a related party of the corporate debtor; and (c) has not acted or is not acting as interim resolution professional, resolution professional or liquidator in respect of the corporate debtor; (ii) the expression related party shall have the meaning assigned to it in sub-section (24) of section 5. (2) An insolvency professional, other than who has filed an application under section 94 or 95 on behalf of a guarantor or a creditor, as the case may be, shall provide a written consent in Form A to the Adjudicating Authority before his appointment as resolution professional in a resolution process. 5. Preservation of records. The resolution professional shall preserve a physical as well as an electronic copy of the records relating to resolution process of the guarantor as per the record retention schedule, as may be communicated by the Board in consultation with insolvency professional agencies. 6. Debt counselling. Debt counselling in relation to resolution process may be provided to a guarantor by such person as may be recognised by the Board or the Central Government, as the case may be. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such change. 9. List of creditors. (1) The list of creditors under sub-section (1) of section 104 shall contain the names of creditors, amount claimed, amount admitted and security interest, if any, in respect of such claims. (2) The resolution professional shall - (a) make the list of creditors available for inspection by the persons who submitted claims with proof; (b) serve a copy of the list of creditors to the guarantor; (c) make available the list of creditors on the website, if any, of the guarantor; (d) present the list of creditors at the meeting of creditors; and (e) file a certified copy of the list of creditors with the Adjudicating Authority along with the repayment plan. 10. Statement of affairs. (1) The resolution professional shall prepare a statement of affairs of the guarantor for the purposes of clause (b) of sub-section (3) of section 107. (2) The statement of affairs shall include the following information of the guarantor - (a) assets and liabilities for the preceding three financial years and the current financial year; (b) details of the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as the case may be. (2) The notice of the meeting shall carry the agenda, which shall include the following- (a) list of matters to be discussed; (b) list of issues to be voted upon; (c) relevant documents in relation to the matters to be discussed and issues to be voted upon. (3) If an option to attend the meeting through video conferencing is made available to the participants, the notice of the meeting shall - (a) state the process and the manner for attending the meeting; (b) provide the login ID and the details of a facility for generating password for access to the meeting in a secure manner; and (c) provide contact details of the person who shall address the queries connected with the video conferencing. (4) If an option to cast vote by electronic means is made available to the creditors, the notice of the meeting shall - (a) state the process and the manner of casting vote by such means; (b) provide the login ID and the details of a facility for generating password for access to the electronic means for casting vote in a secure manner; and (c) provide contact detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) circulate the minutes of the meeting by electronic means to all participants of the meeting within forty-eight hours of the conclusion of the meeting, and (b) seek a vote on the items listed for voting in the meeting from the creditors who were not present in the meeting or did not vote at the meeting, by electronic means, where the voting shall be kept open for at least twenty-four hours from the circulation of the minutes as per clause (a). (4) At the end of the voting period, the resolution professional shall record the decision arrived at on the items along with the names of creditors who voted for, against or abstained from voting on the items, after considering the voting at the meeting and through the electronic means. (5) The resolution professional shall circulate a copy of the record made under sub-regulation (4) to all participants within twenty-four hours of the conclusion of the voting. 16. Voting by proxy. (1) A creditor, who is entitled to vote at a meeting of creditors, shall be entitled to appoint an individual, who shall not be an associate of the guarantor, as a proxy to attend and vote on its behalf. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the income of the guarantor to be used for the repayment of the debt, and the manner of calculating the income of the guarantor; (h) the manner in which funds held for the purpose of repayment to creditors, and not so repaid at the end of the repayment plan, are to be dealt with; and (i) such other matters as may be required by the creditors. 18. Purchase of assets by certain persons. (1) The following persons shall not purchase or acquire any interest in the property of guarantor, directly or indirectly, without permission of the Adjudicating Authority (a) the resolution professional or any partner or director of the insolvency professional entity of which the resolution professional is a partner or director; (b) any professional appointed by the resolution professional for the resolution process; (c) any creditor; (d) any company where the guarantor or a creditor is a promoter or director; (e) any associate of the guarantor, creditor or resolution professional. (2) The Adjudication Authority may set aside purchase or acquisition made contrary to the provisions of this regulation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the implementation of the repayment plan, the resolution professional shall prepare a statement to this effect and file the same with the Adjudicating Authority for appropriate directions. FORM A WRITTEN CONSENT TO ACT AS RESOLUTION PROFESSIONAL ( Under regulation 4(2) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 ) [ Date ] To The Adjudicating Authority [ Name of Bench ] From [ Name of the Insolvency Professional ] [ Registration number of the Insolvency Professional ] [ Address of the Insolvency Professional registered with the Board ] Subject: Written consent to act as resolution professional in the matter of [ name of guarantor ]. 1. I, [name], an insolvency professional enrolled with [name of insolvency professional agency] and registered with the Board, note that I have been proposed to be appointed as resolution professional for the resolution process of [ name of the guarantor ]. 2. In accordance with regulation 4(2) of the Insolvency and Bankru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 ) [Date] To [ Name of the Resolution Professional ] [ Address as set out in public announcement ] From [ Name and address of the creditor ] Subject: Submission of claim with proof in the matter of [ name of guarantor ]. Madam/Sir, [ Name of the creditor ], hereby submits the claim with proof in respect of the resolution process of [ name of guarantor ]. The details for the same are set out below: 1. Title and full name of creditor 2. Identification number of creditor Aadhaar Number PAN CIN GSTIN 3. Address Present Permanent Business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) The amount admitted by the resolution professional / liquidator of said process (iii) Amount realised by me in the said process, if any 15. Following information regarding the guarantor (to the extent known)- Assets of the guarantor Business of the guarantor Firms in which guarantor is a partner Bank account details of the guarantor Name, age and address of spouse, children, parents and siblings of the guarantor Signature of creditor or person authorised to act on his behalf [ Please enclose the authorisation document if this form is being submitted on behalf of a creditor ] Name in block letters Address of person signing DECLARATION I, [name of creditor], currently residing at [insert address], hereby declare and state as follows:- 1. [Name of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int- 1. Full name Address Present Permanent Business Identification Number Aadhaar Number PAN CIN GSTIN E-mail Signature or failing him; 2. Full name Address Present Permanent Business Identification Number Aadhaar Number PAN CIN GSTIN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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