The Insolvency and Bankruptcy Board of India (IBBI) is dedicated to fostering transparency, efficiency, and uniformity within the liquidation process. Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, mandates liquidators to submit detailed progress reports throughout the liquidation process. According to Sub-regulation (1), these reports must be formatted as stipulated by the Board and submitted to both the Adjudicating Authority and the IBBI. Additionally, a circular dated February 22, 2024, now requires liquidators to share these progress reports with members of the Stakeholders’ Consultation Committee (SCC), provided they have signed a confidential undertaking.
The progress reports are required to include a variety of critical information: the appointment, tenure, and cessation of professionals involved; the settlement of the stakeholder list; the status of unsold and realized property; distributions made to stakeholders; and the distribution of any unsold property. Furthermore, the reports must detail the fees due to and received by the liquidator, remuneration or fees paid to appointed professionals, developments in any material litigation involving the corporate debtor, and the filing and progress of applications for the avoidance of transactions.
To streamline the process and ensure uniformity, the IBBI has developed a draft format for these progress reports. This standardized format is intended to simplify the compilation process for Insolvency Professionals (IPs) and facilitate the review process for the Adjudicating Authority. The IBBI is now seeking feedback on this draft format from all stakeholders to ensure it is comprehensive and practical.
IBBI invites all stakeholders to review the enclosed draft format and provide their comments electronically by July 12, 2024.
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