Monetary Penalties to be imposed by an Insolvency Professional Agency – IBBI Circular No. IBBI/IPA/43/2021 dated 28.07.2021

In the interest of objectivity and uniformity, it has been decided that an IPA shall amend its Bye-laws to provide for the maximum and minimum monetary penalty, where the Disciplinary Committee decides to impose such penalty on its professional members, under Clause 24(2)(d) of the Schedule to the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016(see table). Further, the IPA shall amend its Bye- Laws to incorporate Clause 24(5) of the Schedule to the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 as inserted by IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Third Amendment) Regulations, 2021.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021, that seeks to replace the Ordinance, inter alia, provides for— (a) specifying a minimum threshold of not more than one crore rupees for initiating pre-packaged insolvency resolution process; (b) disposal of simultaneous applications for initiation of corporate insolvency resolution process and pre-packaged insolvency resolution process, pending against the same corporate debtor; (c) inserting a new Chapter III-A containing sections 54A to 54P to facilitate pre-packaged insolvency resolution process for corporate persons that are Micro, Small and Medium Enterprises; (d) penalty for fraudulent or malicious initiation of pre-packaged insolvency resolution process or with intent to defraud persons; (e) penalty for fraudulent management of corporate debtor during pre-packaged insolvency resolution process; (f) punishment for offences related to pre-packaged insolvency resolution process; and (g) certain amendments to the relevant provisions, which are consequential in nature.

UNCITRAL adopts the Legislative Recommendations on Insolvency of Micro and Small Enterprises

The United Nations Commission on International Trade Law (UNCITRAL) adopted the Legislative Recommendations on Insolvency of Micro and Small Enterprises (the Legislative Recommendations) and approved the draft commentary to the Legislative Recommendations in principle. The texts are part of UNCITRAL’s ongoing series of insolvency texts as well as texts aimed at reducing the legal obstacles encountered by micro, small and medium-sized enterprises (MSMEs) throughout their life cycle.

Major amendments in Insolvency Professional Regulations, 2016 vide Notification No. IBBI/2021-22/GN/REG077 dt. 22.07.2021

As per the Clause 22 of First Schedule, an insolvency professional must refrain from accepting too many assignments, if he is unlikely to be able to devote adequate time to each of his assignments. Now, a clarification has been added that an insolvency professional may, at any point of time, not have more than ten assignments as resolution professional in corporate insolvency resolution process, of which not more than three shall have admitted claims exceeding one thousand crore rupees each.

IBBI (Insolvency Professionals) (Second Amendment) Regulations, 2021 – No. IBBI/2021-22/GN/REG077 dated 22.07.2021

INSOLVENCY AND BANKRUPTCY BOARD OF INDIANOTIFICATIONNew Delhi, the 22nd July, 2021Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 No. IBBI/2021-22/GN/REG077.- In exercise of the powers conferred by sections 196, 207 and 208 read with section 240…

IBBI (Model Bye-Laws and Governing Board of IPAs) (Third Amendment) Regulations, 2021

INSOLVENCY AND BANKRUPTCY BOARD OF INDIANOTIFICATIONNew Delhi, the 22nd July, 2021Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Third Amendment) Regulations, 2021 No. IBBI/2021-22/GN/REG076.- In exercise of the powers conferred by sections 196,…

e-filing of pleading before DRT & DRAT shall be mandatory where the debt to be recovered is Rs. 100 crore and above – GSR-501(E) dated 22.07.2021

As per sub-rule (2) of Rule 3 of The DRT and DRAT Electronic Filing Rules, 2020, the e-filing of pleadings by applicants shall be optional. Now, a proviso has been inserted that e-filing of pleading shall be mandatory where the debt to be recovered, as mentioned in the application, is rupees one hundred crore and above.

Press Release-IBBI amends the CIRP Regulations, 2016 – IBBI No. IBBI/PR/2021/15 dt. 20.07.2021

The amendment regulations enhance the discipline, transparency, and accountability in corporate insolvency proceedings: (a) A corporate debtor (CD) may have changed its name or registered office address prior to commencement of insolvency. (b) The interim resolution professional (IRP) or resolution professional (RP) may appoint any professional, including registered valuers, to assist him in discharge of his duties in conduct of the CIRP. (c) The RP is duty bound to find out if a CD has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the Adjudicating Authority seeking appropriate relief. The amended regulations are effective from 14th July, 2021.

Changed the name of J&K High Court to “High Court of Jammu and Kashmir and Ladakh” – SO-2860(E) dt. 16.07.2021

The Jammu and Kashmir Reorganisation Act, 2019 was enacted to provide for reorganisation of existing State of Jammu and Kashmir into the Union Territory of Jammu and Kashmir and the Union Territory of Ladakh. Clause (a) of sub-section (1) of section 75 of the Jammu and Kashmir Reorganisation Act, 2019 declared that the High Court of Jammu and Kashmir shall be the Common High Court for the Union Territory of Jammu and Kashmir and Union Territory of Ladakh. The present nomenclature is found to be rather long-winding and cumbersome, the said nomenclature, may be substituted as High Court of Jammu and Kashmir and Ladakh, which besides being convenient would also be in consonance with the name pattern followed in other common High Courts, namely, Punjab and Haryana High Court, which has jurisdiction over the States of Punjab and Haryana and the Union Territory of Chandigarh. Now, vide the Jammu and Kashmir Reorganisation (Removal of Difficulties) Order, 2021, President of India changes the In section 75, in sub-section (1), in clause (a) for the words "Common High Court for the Union Territory of Jammu and Kashmir and Union Territory of Ladakh" the words "High Court of Jammu and Kashmir and Ladakh" shall be substituted.

IBBI amends CIRP Regulation, 2016 – N. No. IBBI/2021-22/GN/REG075 dt. 14.07.2021

THE GAZETTE OF INDIA EXTRAORDINARYPART III, SECTION 4PUBLISHED BY AUTHORITYNew Delhi, Wednesday, July 14, 2021 INSOLVENCY AND BANKRUPTCY BOARD OF INDIANOTIFICATIONNew Delhi, 14th July, 2021 Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations,…