At the time of reference/ directions received from the Adjudicating Authority (AA), the Insolvency and Bankruptcy Board of India (Board) does not have information about the volume, nature and complexity of an insolvency or bankruptcy process and the resources available at the disposal of an Insolvency Professional (IP). In such a situation, the Board is unlikely to add much value by recommending an IP for the process.
Further, it takes some time for a reference or a direction from the AA to reach the Board. The Board may take up to ten days to identify an IP for the purpose. It also takes some time for the recommendation of the Board to reach the AA, after which the AA could appoint the recommended IP. The process of appointment may entail 2-3 weeks, which could be saved if the AA has a ready Panel of IPs recommended by the Board and it can pick up any name from the Panel for appointment while issuing the Order itself.
As per Insolvency and Bankruptcy Code, 2016 (Code), every IP is equally qualified to be appointed as the IRP, Liquidator, RP or BT of any corporate or individual insolvency resolution, liquidation or bankruptcy process, as the case may be, if otherwise not disqualified, and in the interest of avoiding administrative delays, the Board considers necessary to have these guidelines to prepare a Panel of IPs for the purpose of sections 16(4), 34(6), 97(4), 98(3), 125(4), 146(3) and 147(3) of the Code..
The Board releases the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2022.
Download Second Guidelines, 2022
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