insolvency: IBBI to form ‘common panel’ of insolvency professionals

2023-06-13 18:46:32

The bankruptcy regulator will prepare a “common panel” of insolvency professionals (IPs) from those registered with it and share the list in advance with the adjudicating authority to choose from to oversee various cases of resolution or liquidation from July 1.

At present, the Insolvency and Bankruptcy Board of India (IBBI) is required to recommend the IP’s name only after receiving reference from the National Company Law Tribunal (NCLT) in a corporate insolvency resolution process (CIRP).

The proposed move, the regulator believes, will “avoid administrative delays” in the appointment of IPs and help expedite insolvency resolution.

This list of IPs will also be submitted with the Debt Recovery Tribunal for handling individual insolvency cases as well, according to the IBBI.

In its latest guidelines, dated June 12, the regulator said: “The board will prepare a common panel of IPs for appointment as IRP (interim resolution professional), liquidator, RP (resolution professionals) and BT (bankruptcy trustee) and share the same with the AA (adjudicating authority)”.

The panel will have a validity of six months and will be followed by an updated one. The first panel will be effective from July 1 to December 31.The regulator has asked IPs to submit their expression of interest for being a part of such a panel by June 25. It will send the panel to the adjudicating authority by June 30.

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