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Corporate Laws Central Ministry of Finance Insolvency and Bankruptcy Code, 2016

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2023

18-Sep-2023 | IBBI/2023-24/GN/REG106

Insolvency and Bankruptcy Board of India has introduced the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2023, effective from 18th September 2023. The key changes are as follows:

1. Insertion of Regulation 2D-Detailed Debt and Default Information: When filing an application under section 7 or section 9, financial creditors or operational creditors must provide a comprehensive chronology of the debt and default. This includes details like when the debt was due, the date of default, any partial payments made, the date of the last acknowledgment of debt, and the relevant limitation period.

2. Insertion of Regulation 3A-Assistance and Cooperation by Corporate Debtor Personnel: The interim resolution professional or resolution professional is now empowered to take custody and control of certain records and assets from the personnel of the corporate debtor. This includes information related to the assets, finances, and operations of the corporate debtor, as well as assets recorded in the balance sheet.

3. Insertion of Regulation 12(1)-Submission of Claims: Creditors are required to submit their claims along with supporting evidence before the last date mentioned in the public announcement. Failure to do so within the stipulated time can lead to a creditor submitting their claim with proof to the interim resolution professional or resolution professional.

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