IBBI points draft format for progress report throughout liquidation course of

Insolvency regulator, IBBI, has come out with a draft of the format of the progress report that liquidators are required to file with the Nationwide Firm Legislation Tribunal (NCLT) underneath the liquidation course of. The target of growing a format of the report is to streamline the liquidation course of and guarantee uniformity within the construction of such reviews.

It could be helpful for each Insolvency Professionals and the Adjudicating Authority if there have been a standardised report, IBBI has mentioned.  Public feedback have been invited on the draft format by digital mode by July 12.

Insolvency and Chapter Board of India (IBBI) had in February this 12 months stipulated that the progress reviews also needs to be shared with the members of the Stakeholders Session Committee, supplied they’ve given a confidential endeavor. 

‘Complete format’

Commenting on the newest IBBI transfer, Anoop Rawat, Associate, Shardul Amarchand Mangaldas & Co, mentioned, “the progress report format is a complete format masking all necessary areas of the liquidation course of. The format shall additionally organise the liquidation course of actions for the liquidators albeit at the price of further time and useful resource deployment”.

Anjali Jain, Associate at Areness, mentioned that the newest step to streamline the progress reviews furnished by the liquidator is extremely welcome, because it enhances transparency and gives immense readability to varied stakeholders.

At the moment, IBBI Regulation on liquidation course of requires progress report in a liquidation course of to incorporate particulars on the appointment, tenure and cessation of appointment of pros; the settlement of the checklist of stakeholders; the standing of any property that is still to be bought and realised; distributions made to stakeholders and the distribution of unsold property to stakeholders. 

Moreover, the report ought to cowl the payment on account of and obtained by the liquidator, the remuneration or payment paid to professionals appointed by the liquidator, developments in any materials litigation involving the company debtor and the submitting and developments in purposes for avoidance of transactions.