On June 5, 2024, the Insolvency and Bankruptcy Board of India (IBBI) issued the "Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2024". These guidelines aim to streamline the appointment process of Insolvency Professionals (IPs) by creating a pre-prepared panel of eligible IPs to act in various capacities such as Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), Liquidators, and Bankruptcy Trustees (BTs).
Objective and Scope
The primary objective of these guidelines is to reduce administrative delays by ensuring a ready panel of qualified IPs is available for appointment by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT). The guidelines detail the criteria and process for preparing this panel and outline the roles and responsibilities of the IPs included.
1. Short Title and Commencement
The guidelines are officially titled the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2024. The panel prepared under these guidelines will be effective from July 1, 2024, to December 31, 2024.
2. Eligibility Criteria for IPs
To be included in the panel, an IP must meet the following criteria:
No pending disciplinary proceedings by the IBBI or the Insolvency Professional Agency (IPA).
No convictions by a court of competent jurisdiction in the last three years.
Submission of an expression of interest (EOI) along with consent to act in various capacities as required.
Holding a valid Authorization for Assignment (AFA) throughout the panel’s validity period.
3. Expression of Interest
The IBBI will invite EOIs from eligible IPs via email. IPs must submit their EOIs in Form A by the specified date, no later than June 23, 2024. The submission is considered unconditional consent to act as IRP, RP, Liquidator, or BT as required. Additionally, IPs must specify the sectors they have experience in from a provided list.
4. Panel Preparation
The IBBI will prepare a common panel of IPs, which will be shared with the NCLT and DRT. This panel will be divided into zones based on the registered office address of the IP. Each zone corresponds to different geographic areas as outlined in Annexure-1.
5. Sorting Criteria
The panel will be sorted based on the volume and experience of completed assignments under the Insolvency and Bankruptcy Code, 2016. In case of a tie, the date of registration with the IBBI will be the deciding factor.
6. Conditions for IPs
Inclusion in the panel implies acceptance to act as IRP, RP, Liquidator, or BT upon appointment.
IPs must not withdraw their consent or refuse an appointment without permission from the NCLT, DRT, or IBBI.
IPs should not surrender their registration or AFA during the panel's validity.
The NCLT or DRT may appoint IPs from the panel at their discretion.
7. Repeal and Savings
These guidelines repeal the previous "Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2023" as of their effective date, with all prior actions under the repealed guidelines remaining valid.
Annexure-1: Zones Covered
New Delhi Zone: Union Territory of Delhi
Ahmedabad Zone: State of Gujarat, Union Territories of Dadra and Nagar Haveli, and Daman and Diu
Allahabad Zone: States of Uttar Pradesh and Uttarakhand
Amravati Zone: State of Andhra Pradesh
Bengaluru Zone: State of Karnataka
Chandigarh Zone: States of Himachal Pradesh, Punjab, Haryana, Union Territories of Chandigarh, Jammu and Kashmir, and Ladakh
Cuttack Zone: States of Chhattisgarh and Odisha
Chennai Zone: State of Tamil Nadu and Union Territory of Puducherry
Guwahati Zone: States of Arunachal Pradesh, Assam, Manipur, Mizoram, Meghalaya, Nagaland, Sikkim, and Tripura
Hyderabad Zone: State of Telangana
Indore Zone: State of Madhya Pradesh
Jaipur Zone: State of Rajasthan
Kochi Zone: State of Kerala and Union Territory of Lakshadweep
Kolkata Zone: States of Bihar, Jharkhand, West Bengal, and Union Territory of Andaman and Nicobar Islands
Mumbai Zone: States of Goa and Maharashtra
These guidelines ensure a systematic and efficient process for appointing IPs, enhancing the overall efficiency of insolvency and bankruptcy proceedings in India.
Download The Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2024
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