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The Insolvency and Bankruptcy Board of India (IBBI) has issued a new set of guidelines to streamline the process for appointing insolvency professionals (IPs) as interim resolution professionals, liquidators, and bankruptcy trustees.
Under the new guidelines, issued on June 5, a panel of IPs will be set up, which will be effective from July 1, 2024, to December 31, 2024.
The panel will be shared with the National Company Law Tribunal and the Debt Recovery Tribunal (DRT) to avoid administrative delays.
The panel will have a validity of six months.
To be eligible for inclusion in the panel, the IPs must have no pending disciplinary proceedings or convicted in the last three years by a court of competent jurisdiction.
Further, they also hold an authorisation for assignment, which will be valid till the validity of the panel, and submit an expression of interest, along with their consent to act in various capacities.
In addition, they should have prior experience in handling assignments under the Insolvency and Bankruptcy Code.
The IBBI will prepare the panel based on the volume of completed assignments and registration dates of the IPs, ensuring those with more experience are given priority.
The IPs are expected to accept appointments without withdrawing consent unless permitted by the NCLT, DRT, or IBBI. Failure to do so without sufficient justification could result in removal from the panel for six months.
The Insolvency and Bankruptcy Board of India (IBBI) is a statutory body functioning under the corporate affairs ministry.
These guidelines aim to enhance the efficiency and effectiveness of the insolvency resolution process in the country by ensuring a ready pool of qualified professionals is available for immediate appointment.
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