The Insolvency and Bankruptcy Board of India (IBBI) has come up with new rules regarding the insolvency resolution process for corporate individuals that empowers Insolvency Resolution Professionals (IRPs) to engage the services of professionals to help them conduct complex resolution processes. makes.
The changes made by amending the IBBI (Insolvency Resolution Process for Corporate Individuals) Regulations, 2016 have also made the RP responsible for ascertaining whether the Corporate Debtor (CD) is subject to avoidance transactions, i.e., preferential transactions, Low value transactions, extortionate credit transactions, fraudulent trade and wrongful trade, and file applications in a time bound manner with the Adjudicating Authority seeking appropriate relief.
The amendment also requires an insolvency professional (IP) to disclose all former names and registered office addresses in all of his communications and records in the two years prior to the start of the CD’s bankruptcy. This will allow stakeholders who may find it difficult to relate to the new name or registered office address to participate in the resolution process.