The Insolvency and Bankruptcy Code, 2016
IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
Chapter-VIII Conduct of Corporate Insolvency Resolution Process
Regulation 27: Appointment of Professionals.
1[27. (1) The resolution professional shall, within seven days of his appointment but not later than forty-seventh day from the insolvency commencement date, appoint two registered valuers to determine the fair value and the liquidation value of the corporate debtor in accordance with regulation 35.
(2) The interim resolution professional or the resolution professional, as the case may be, may appoint2 any professional, in addition to registered valuers under sub-regulation (1), to assist him in discharge of his duties in conduct of the corporate insolvency resolution process, if he is of the opinion that the services of such professional are required and such services are not available with the corporate debtor.
(3) The interim resolution professional or the resolution professional, as the case may be, shall appoint a professional under this regulation on an arm’s length basis following an objective and transparent process:
Provided that the following persons shall not be appointed, namely: –
(a) a relative of the resolution professional;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor at any time during the period of five years preceding the insolvency commencement date;
(d) a partner or director of the insolvency professional entity of which the resolution professional is a partner or director.
(4) The invoice for fee and other expenses incurred by a professional appointed under this regulation shall be raised in the name of the professional and be paid directly into the bank account of such professional.]
References
1. Substituted by IBBI (CIRP) (Second Amendment) Regulations, 2021 vide Notification No. IBBI/2021-22/GN/REG075 dated 14th July, 2021, w.e.f. 14.07.2021 and shall apply to every CIRP ongoing or commencing on or after the date of coming into force of these regulations, for the regulation:
“27. Appointment of registered valuers.
*[27. The resolution professional shall within #[seven days of his appointment, but not later than forty-seventh day from the insolvency commencement date], appoint $two registered valuers ^to determine the fair value and the liquidation value of the corporate debtor in accordance with regulation 35:
Provided that the following persons shall not be appointed as registered valuers, namely:
(a) a relative of the resolution professional;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor at any time during the five years preceding the insolvency commencement date; or
(d) a partner or director of the insolvency professional entity of which the resolution professional is a partner or director.]
Reference:
*Substituted by IBBI (CIRP) (Amendment) Regulations, 2018 vide Notification No. IBBI/2017-18/GN/REG024, dated 6th February, 2018, w.e.f. 06.02.2018, for the Regulation:
“27. Appointment of registered valuers:- The interim resolution professional shall within seven days of his appointment, appoint two registered valuers to determine the liquidation value of the corporate debtor in accordance with Regulation 35:
Provided that the following persons shall not be appointed as registered valuers:
(a) a relative of the interim resolution professional;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor in the five years preceding the insolvency commencement date; or
(d) a partner or director of the insolvency professional entity.”.”
#Substituted IBBI (CIRP) (Third Amendment) Regulations, 2018 vide Notification No. IBBI/2018-19/GN/REG031, dated 3rd July, 2018, w.e.f. 04.07.2018 and shall apply to CIRP commencing on or after the said date, for the words “seven days of his appointment”.
$With effect from 01.02.2019, no insolvency professional shall appoint a person other than a registered valuer to conduct any valuation under the Code or any of the regulations made thereunder-No. IBBI/RV/019/2018 17th October, 2018 and No. IBBI/RV/022/2019 dt. 13.08.2019.
^Disclosures by Insolvency Professionals and other Professionals appointed by Insolvency Professionals conducting Resolution Processes-No. IP/005/2018, 16th January, 2018..
2. Insolvency Professional not to outsource his responsibilities-Refer IBBI Circular No. IP/003/2018, 3rd January, 2018.
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