In a bid to enhance the corporate insolvency resolution process (CIRP) in India, the Insolvency and Bankruptcy Board of India (IBBI) on Thursday notified the changes to CIRP regulations, which have been brought into effect from September 18, 2023, according to the official notification.
To alleviate the burden on the Adjudicating Authority (AA) in dealing with delayed claims, the amendments extend the timeline for filing claims until the issuance of the request for resolution plans or ninety days from the insolvency commencement date, whichever is later. The RP is empowered to provide their opinion on the acceptance of claims submitted beyond this timeframe, and the committee of creditors (CoC) can recommend their inclusion in the list of claims and treatment within the resolution plan before AA's adjudication.
Also, the amendments allow committee members to conduct audits of the corporate debtor or CD, with the audit costs included as part of the CIRP cost.
Additional changes include aligning timelines for procedural aspects such as the issuance of information memoranda and requests for resolution plans, providing more information in Form G to prospective resolution applicants, and including committee of creditors' minutes in the compliance certificate (Form H) to aid AA's understanding of the CoC's decision-making rationale.
The amendments also require creditors to provide details of debt assignments within seven days to facilitate CoC meetings. Furthermore, applicants filing under sections 7 or 9 must submit a chronology of debt, default, and limitation along with evidence to assist the AA in adjudicating such cases.