What is IBBI's new guideline about?

16 Jun 2022 , 01:31 PM

The Bankruptcy Board of India (IBBI) changed insolvency regulations on Wednesday (15-06-2022), requiring creditors to provide information on their corporate debtors’ assets and liabilities, as well as other pertinent financial information, before starting a corporate insolvency procedure.

The legislation also allows operational creditors to provide a copy of their GST returns, as well as e-way invoices, as documented evidence of their debt and default.

For faster claim verification, the same information can be included in the claim papers presented to the Insolvency Resolution Professional or the interim resolution professional.

The new regulations also address how avoidance petitions submitted with the Adjudicating Authority are handled once the corporate bankruptcy resolution procedure is completed (CIRP).

The amendment adds a description of substantial differences in values during CIRP and allows the committee of creditors to request the appointment of a third valuer from the resolution professional.