IBBI amends Liquidation Process and Voluntary Liquidation Process Regulations

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IBBI Liquidation and Voluntary Process Regulations amended on 05.08.2020
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IBBI AMENDS LIQUIDATION AND VOLUNTARY LIQUIDATION PROCESS REGULATIONS

The IBBI made the following amendments to the Regulations pertaining to Liquidation Process and Voluntary Liquidation Process on August 5, 2020:

In the IBBI (Liquidation Process) Regulations, 2016:

A clarification is inserted in Regulation 4 clarifying that where a liquidator realising any amount on sale of assets is different from the liquidator distributing such amount to claimants, in such a case the fee of the individual liquidators shall be in correspondence with the amount realised or distributed, as the case may be, i.e., the liquidator who realises any amount on sale of asset, but does not distribute the same, shall be entitled to a fee corresponding to the amount realised by him.

Similarly, a liquidator who distributes any amount which was originally realised by another liquidator, he shall be entitled to a fee corresponding to the amount distributed by him.

In the IBBI (Voluntary Liquidation Process) Regulations, 2017:

The existing Regulation 5 is substituted and as per this amendment the corporate person which filed for voluntary liquidation may replace the liquidator by appointing another insolvency professional as liquidator by a resolution of members or partners, or contributories, as the case may be. The Insolvency Professional so appointed replacing the existing liquidator, shall intimate the Board about such appointment within three days thereof.

The previous regulation did not provide for replacement of Liquidator.

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