Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Second Amendment Regulations, 2022

Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Second Amendment Regulations, 2022

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA 

NOTIFICATION

New Delhi, the 16th September, 2022

Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022

No. IBBI/2022-23/GN/REG095.—In exercise of the powers conferred by clause (t) of sub-section

(1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, namely: –

1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (hereinafter referred to as „the principal regulations‟), in regulation 3, after sub-regulation (4), the following sub-regulation shall be inserted, namely:-

“(5) The declaration under sub-regulation (1)(a) or under section 59(3)(a) shall provide that the corporate person has made provision for preservation of its records after its dissolution.”

3. In the principal regulations, for regulation 41, the following regulation shall be substituted, namely:-

“41. Preservation of records.

(1) The liquidator shall preserve copies of all such records which are required to give a complete account of the voluntary liquidation process.

(2) Without prejudice to the generality of the obligations under sub-regulation (1), the liquidator shall preserve copies of records relating to or forming the basis of:-

(a) his appointment as liquidator, including the terms of appointment;

(b) handing over / taking over of the assignment;

(c) initiation of voluntary liquidation process;

(d) public announcement;

(e) claims, verification of claims, and list of stakeholders;

(f) engagement of professionals, registered valuers, etc. including work done, reports etc., submitted by them;

(g) all filings with the Adjudicating Authority, Appellate Authority, High Courts, Supreme Court, whichever applicable and their orders;

(h) statutory filings with Board and insolvency professional agencies;

(i) correspondence during the voluntary liquidation process;

(j) cost of voluntary liquidation process;

(k) all reports, registers, documents such as preliminary report, annual status report, final report prior to dissolution, various registers and books, etc. mentioned in Regulation 8 and 10 of principal regulations; and

(l) any other records, which is required to give a complete account of the process.

(3) The liquidator shall preserve:

(a) electronic copy of all records (physical and electronic) for a minimum period of eight years; and

(b) a physical copy of records for a minimum period of three years; from the date of dissolution of the corporate  person, before the Board, the Adjudicating Authority, Appellate Authority or any Court, whichever is later.

(4) In case of replacement of liquidator during the process, the outgoing liquidator shall handover the records under sub-regulation (1) and (2) to the new liquidator.

(5) The liquidator shall preserve the records ata secure place and shall be obliged to produce records as may be required under the Code and the principal regulations.

(6) The liquidator shall, along with the application filed under sub-section (7) of section 59 to the Adjudicating Authority, provide the details and manner of preservation of records under sub- regulation (1) and (2).

Explanation – The records referred to in this regulation includes records pertaining to the period of a liquidation process during which the liquidator acted as such, irrespective of the fact that he did not take up the assignment from its commencement or continue the assignment till its conclusion.”

Note : The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 were published vide notification No. IBBI/2016-17/GN/REG010 on 31st March, 2017 in the Gazette of India, Extraordinary, Part III, Section 4, No. 130 dated 31st March, 2017 and were last amended by the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2022 published vide notification No. IBBI/2022-23/GN/REG.081 dated 05th April 2022 in the Gazette of India, Extraordinary, Part III, Section 4, No. 182 on 05th April, 2022.