Introduction –

The Insolvency and Bankruptcy Board of India (IBBI), through Notification No. IBBI/2017-18/GN/REG23, on December 31, 2017, has notified the “Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2017”.[1] This notification was made in exercise of its powers conferred by Clause (t) of Sub-Section (1) of Section 196 read with Section 240 of the Insolvency and Bankruptcy Code, 2016 (herein after referred to as the Code).

Amendments in the regulation –

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2017.

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

2. In light of the amendment, the following clause shall be substituted, namely: –

“(e) “dissenting financial creditor” means a financial creditor who voted against the resolution plan or abstained from voting for the resolution plan, approved by the committee”.

3. With regards to regulation 34 –

(a) for sub-regulation (3), the following sub-regulation shall be substituted, namely: –

“(3) After the receipt of resolution plans in accordance with the Code and these regulations, the resolution professional shall provide the liquidation value to every member of the committee in electronic form, on receiving an undertaking from the member to the effect that such member shall maintain confidentiality of the liquidation value and shall not use such value to cause an undue gain or undue loss to itself or any other person and comply with the requirements under sub-section (2) of section 29”.

(b) after sub-regulation (3), the following sub-regulation shall be inserted, namely: –

“(4) Subject to sub-regulation (3), the interim resolution professional or the resolution professional, as the case may be, shall maintain the confidentiality of the liquidation value.”

4. In the principal regulations, in regulation 35, in sub-regulation (2), clauses (j) and (k) shall be omitted.

5. In the principal regulations, in regulation 38, for sub-regulation (1), the following sub-regulation shall be substituted, namely: –

“(1) A resolution applicant shall submit resolution plan(s) prepared in accordance with the Code and these regulations to the resolution professional within the time given in the invitation made under clause (h) of sub-section (2) of section 25”.

Conclusion –

The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 were published in the Gazette of India, vide notification No. IBBI/2017-18/GN/REG012 dated the June 14, 2017. Thereafter, the following amendments have been made –

(1) The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2017, vide notification No. IBBI/2017- 18/GN/REG014, dated the August 16, 2017.

(2) The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2017 vide notification No. IBBI/2017- 18/GN/REG017, dated the October 5, 2017.

(3) The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017 vide notification No. IBBI/2017- 18/GN/REG020, dated the November 7, 2017.