In a significant move to streamline the appointment process of Insolvency Professionals (IPs), the Insolvency and Bankruptcy Board of India (IBBI) has issued guidelines to create a panel of qualified individuals for various roles in the insolvency and bankruptcy resolution process. The guidelines aim to minimize administrative delays and ensure the smooth functioning of the National Company Law Tribunal and Debts Recovery Tribunal (Adjudicating Authority).
Under the provisions of the Insolvency and Bankruptcy Code, 2016, the Board is responsible for recommending IPs upon receiving references from the Adjudicating Authority, pertaining to Corporate Insolvency or Individual Insolvency cases. The recommended IPs may be appointed as Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), Liquidators, or Bankruptcy Trustees (BT) as per the applicable sections of the Code.
To prevent any potential delays in the appointment of IPs, the IBBI recognized the need to prepare a panel of qualified professionals in advance. The newly introduced guidelines outline the procedure for creating this panel, which will serve as a pool of IPs ready for appointment when required by the Adjudicating Authority.
Additionally, Rule 8(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, and Rule 8(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019 empower the Board to share the panel of IPs with the Adjudicating Authority, enabling them to select and appoint suitable resolution professionals or bankruptcy trustees.
These guidelines mark a significant step towards expediting the insolvency resolution process in India. By maintaining a readily available panel of IPs, the IBBI aims to enhance efficiency, reduce administrative bottlenecks, and ensure timely and effective resolution of insolvency cases.
The IBBI continues to work towards strengthening the insolvency and bankruptcy framework in India, promoting a conducive environment for businesses and creditors alike.
Download The Insolvency Professionals to Act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2023
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