Amended IBBI Regulation on ‘Preservation of Records’ by Insolvency Professionals

IBBI notifies the amended regulations in relation to convening of meetings and preservation of records by the Insolvency Professionals (IPs), i.e. Interim Resolution Professionals (IRPs)/ Resolution Professional (RPs) under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations read with the Insolvency and Bankruptcy Code (IBC), 2016.

IBBI Notification dt. 09/02/2022: Amended IBBI Regulation on ‘Convening of Meetings and Preservation of Records’ by Insolvency Professionals

F. No. IBBI/ 2021-22/ GN/ REG/ 080.- In exercise of the powers conferred by clause (t) of subsection (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:-

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

IBBI Regulation on Preservation of Records by Insolvency Professionals

2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as “the principal regulations‟), regulation 18 shall be substituted by the following, namely:-

18. Meetings of the committee.-

(1) A resolution professional may convene a meeting of the committee as and when he considers necessary.

(2) A resolution professional may convene a meeting, if he considers it necessary, on a request received from members of the committee and shall convene a meeting if the same is made by members of the committee representing at least thirty three per cent of the voting rights.

(3) A resolution professional may place a proposal received from members of the committee in a meeting, if he considers it necessary and shall place the proposal if the same is made by members of the committee representing at least thirty three per cent of the voting rights.

3. In the principal regulations, for regulation 39A, the following regulation shall be substituted, namely:-

39A. Preservation of records.-

(1) The interim resolution professional or the resolution professional, as the case may be, shall preserve copies of all such records which are required to give a complete account of the corporate insolvency resolution process.

(2) Without prejudice to the generality of the obligations under sub-regulation (1), the interim resolution professional or the resolution professional, as the case may be, shall preserve copies of records relating to or forming the basis of:-

(a) his appointment as interim resolution professional or resolution professional, including the terms of appointment;

(b) handing over/ taking over of the assignment;

(c) admission of corporate debtor into corporate insolvency resolution process;

(d) public announcement;

(e) the constitution of committee and meetings of the committee;

(f) claims, verification of claims, and list of creditors;

(g) engagement of professionals, registered valuers, and insolvency professional entity, including work done, reports etc., submitted by them;

(h) information memorandum;

(i) all filings with the Adjudicating Authority, Appellate Authority and their orders;

(j) invitation, consideration and approval of the resolution plan;

(k) statutory filings with Board and insolvency professional agencies;

(l) correspondence during the corporate insolvency resolution process;

(m) insolvency resolution process cost; and

(n) preferential, undervalued, extortionate credit transactions or fraudulent or wrongful trading.

(3) The interim resolution professional or the resolution professional shall preserve:

(a) electronic copy of all records (physical and electronic) for a minimum period of eight years; and

(b) a physical copy of records for a minimum period of three years;

from the date of completion of the corporate insolvency resolution process or the conclusion of any proceeding relating to the corporate insolvency resolution process, before the Board, the Adjudicating Authority, Appellate Authority or any Court, whichever is later.

(4) The interim resolution professional or the resolution professional shall preserve the records at a secure place and shall be obliged to produce records as may be required under the Code and the Regulations.

Explanation- The records referred to in this regulation includes records pertaining to the period of a corporate insolvency resolution process during which the interim resolution professional or the resolution professional acted as such, irrespective of the fact that he did not take up the assignment from its commencement or continue the assignment till its conclusion.

Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide notification No. IBBI/ 2016-17/ GN/ REG004, dt. 30/112016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30/11/2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2021 published vide notification No. IBBI/ 2021-22/ GN/ REG078, dt. 30/09/2021 in the Gazette of India, Extraordinary, Part III, Section 4, No. 427 on 30/09/2021.

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