Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020

Nov 18, 2020 | by Avantis RegTech Legal Research Team

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Secretarial Compliance

The Insolvency and Bankruptcy Board of India (IBBI) on November 13, 2020 has issued the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020 to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 

The following amendments have been made

• Regulation 30A, which specifies the transfer of debt due to the creditors, has been inserted, namely: 

“A creditor may assign or transfer the debt due to him or it to any other person during the liquidation process in accordance with the laws for the time being in force dealing with such assignment or transfer. Where any creditor assigns or transfers the debt due to him or it to any other person under sub-regulation (1), both parties shall provide to the liquidator the terms of such assignment or transfer and the identity of the assignee or transferee.”

• Rule 37A, which specifies the assignment of not readily realisable assets, has been inserted, namely: 

A liquidator may assign or transfer a not readily realisable asset through a transparent process, in consultation with the stakeholders’ consultation committee in accordance with regulation 31A, for a consideration to any person, who is eligible to submit a resolution plan for insolvency resolution of the corporate debtor.”

[Notification No. IBBI/2020-21/GN/REG067]

 


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