The Insolvency & Bankruptcy Code, 2016 alongwith Rules & Regulations

CONTENTS

Effective Date Notifications for the Code vii-x
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 lvii-c
The Insolvency and Bankruptcy Code (Amendment) Act, 2021 ci-cxxiii
The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 cxxiv-cxxv
The Insolvency and Bankruptcy Code (Amendment) Act, 2020 cxxvi-cxxxi
The Insolvency and Bankruptcy Code (Amendment) Act, 2019 cxxxii-cxxxiv
The Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 cxxxv-clii
The Insolvency and Bankruptcy Code (Amendment) Act, 2018 cliii-clvi
THE INSOLVENCY AND BANKRUPTCY CODE, 2016

PART I
PRELIMINARY

1. Short title, extent and commencement 1
2. Application 2
3. Definitions 3

PART II

INSOLVENCY RESOLUTION AND LIQUIDATION FOR

CORPORATE PERSONS

CHAPTER I
PRELIMINARY

4. Application of this Part 7
5. Definitions 8

CHAPTER II

CORPORATE INSOLVENCY RESOLUTION PROCESS

6. Persons who may initiate corporate insolvency resolution process 17
7. Initiation of corporate insolvency resolution process by financial
creditor 17
8. Insolvency resolution by operational creditor 21
9. Application for initiation of corporate insolvency resolution process
by operational creditor 22

10. Initiation of corporate insolvency resolution process by corporate
applicant 24
10A. Suspension of initiation of corporate insolvency resolution process 26
11. Persons not entitled to make application 26
11A. Disposal of applications under section 54C and under section 7 or
section 9 or section 10 27
12. Time-limit for completion of insolvency resolution process 28
12A. Withdrawal of application admitted under section 7, 9 or 10 29
13. Declaration of moratorium and public announcement 30
14. Moratorium 31
15. Public announcement of corporate insolvency resolution process 34
16. Appointment and tenure of interim resolution professional 34
17. Management of affairs of corporate debtor by interim resolution
professional 36
18. Duties of interim resolution professional 37
19. Personnel to extend cooperation to interim resolution professional 38
20. Management of operations of corporate debtor as going concern 39
21. Committee of creditors 40
22. Appointment of resolution professional 44
23. Resolution professional to conduct corporate insolvency resolution
process 45
24. Meeting of committee of creditors 46
25. Duties of resolution professional 47
25A. Rights and duties of authorised representative of financial creditors 49
26. Application in respect of certain transactions or trading not to affect
processes 50
27. Replacement of resolution professional by committee of creditors 50
28. Approval of committee of creditors for certain actions 51
28A. Transfer of assets of guarantor of corporate debtor during process 52
29. Preparation of information memorandum 53
29A. Persons not eligible to be resolution applicant 54
30. Submission of resolution plan 58
31. Approval of resolution plan 62
32. Appeal 65
32A. Liability for prior offences, etc. 65

CHAPTER III
LIQUIDATION PROCESS

33. Initiation of liquidation 67
34. Appointment of liquidator and fee to be paid 71
34A. Replacement of liquidator by committee of creditors 72

35. Powers and duties of liquidator 73
36. Liquidation Estate 75
37. Powers of liquidator to access information 78
38-42 [Omitted] 78
43. Preferential transactions and relevant time 79
44. Orders in case of preferential transactions 81
45. Avoidance of undervalued transactions 82
46. Relevant period for undervalued transactions 83
47. Application by creditors, member or partner in case of certain
transactions or trading 84
48. Order in cases of undervalued transactions 85
49. Transactions defrauding creditors 85
50. Extortionate credit transactions 86
51. Orders of Adjudicating Authority in respect of extortionate credit
transactions 87
52. Secured creditor in liquidation proceedings 87
53. Distribution of assets 89
54. Dissolution of corporate debtor 92
54A. Corporate debtors eligible for pre-packaged insolvency resolution
process 93
54B. Duties of insolvency professional before initiation of pre-packaged
insolvency resolution process 95
54C. Application to initiate pre-packaged insolvency resolution process 96
54D. Time-limit for completion of pre-packaged insolvency resolution
process 96
54E. Declaration of moratorium and public announcement during
pre-packaged insolvency resolution process 97
54F. Duties and powers of resolution professional during pre-packaged
insolvency resolution process 97
54G. List of claims and preliminary information memorandum 99
54H. Management of affairs of corporate debtor 100
54-I. Committee of creditors 100
54J. Vesting management of corporate debtor with resolution
professional 101
54K. Consideration and approval of resolution plan 101
54L. Approval of resolution plan 104
54M. Appeal against order under section 54L 105
54N. Termination of pre-packaged insolvency resolution process 105
54-O. Initiation of corporate insolvency resolution process 106

xiv CONTENTS
54P. Application of provisions of Chapters II, III, VI and VII to this
Chapter 107
55-58. [Omitted] 108

CHAPTER IV-A

CREDITOR-INITIATED INSOLVENCY RESOLUTION PROCESS

58A. Corporate debtors eligible for creditor-initiated insolvency resolution
process 108
58B. Initiation of creditor-initiated insolvency resolution process 109
58C. Objections to commencement of process 110
58D. Period for completion of creditor-initiated insolvency resolution
process 111
58E. Duties and powers of resolution professional 111
58F. Management of affairs of corporate debtors and cooperation of its
personnel 112
58G. Moratorium 113
58H. Conversion of creditor-initiated insolvency resolution process to
corporate insolvency resolution process 113
58-I. Withdrawal of public announcement made under section 58B 114
58J. Application for approval of resolution plan 115
58K. Application of provisions of Chapters II, III, VI and VII to this
Chapter 115

CHAPTER V

VOLUNTARY LIQUIDATION OF CORPORATE PERSONS

59. Voluntary liquidation of corporate persons 116

CHAPTER VA
GROUP INSOLVENCY

59A. Power to make rules for initiating proceedings for coordination and
cooperation of corporate debtors of group 118

CHAPTER VI

ADJUDICATING AUTHORITY FOR CORPORATE PERSONS

60. Adjudicating Authority for corporate persons 120
61. Appeals and Appellate Authority 122
62. Appeal to Supreme Court 123
63. Civil court not to have jurisdiction 123
64. Expeditious disposal of applications 123
64A. Penalty for initiating frivolous or vexatious proceedings under Part II 124
65. Fraudulent or malicious initiation of proceedings 124
66. Fraudulent or wrongful trading 124
67. Proceedings under section 66 126

67A. Fraudulent management of corporate debtor during pre-packaged
insolvency resolution process or creditor-initiated insolvency
resolution process 127
67B. Contravention of moratorium or resolution plan 127
67C. Contravention for non-disclosure of dispute or payment of debt by
operational creditor 128

CHAPTER VII
OFFENCES AND PENALTIES

68. Punishment for concealment of property 128
69. Punishment for transactions defrauding creditors 130
70. Punishment for misconduct in course of corporate insolvency
resolution process 130
71. Punishment for falsification of books of corporate debtor 131
72. Punishment for wilful and material omissions from statements
relating to affairs of corporate debtor 131
73. Punishment for false representations to creditors 131
74. [Omitted] 132
75. Punishment for false information furnished in application 132
76. [Omitted] 132
77. Punishment for providing false information in application made by
corporate debtor 132
77A. Punishment for offences related to pre-packaged insolvency
resolution process 133

PART III

INSOLVENCY RESOLUTION AND BANKRUPTCY FOR
INDIVIDUALS AND PARTNERSHIP FIRMS

CHAPTER I
PRELIMINARY

78. Application 134
79. Definitions 134

CHAPTER II
FRESH START PROCESS

80. Eligibility for making an application 137
81. Application for fresh start order 137
82. Appointment of resolution professional 138
83. Examination of application by resolution professional 139
84. Admission or rejection of application by Adjudicating Authority 140

85. Effect of admission of application 140
86. Objections by creditor and their examination by resolution
professional 141
87. Application against decision of resolution professional 142
88. General duties of debtor 142
89. Replacement of resolution professional 142
90. Directions for compliances of restrictions, etc. 143
91. Revocation of order admitting application 143
92. Discharge order 144
93. Standard of conduct 145

CHAPTER III

INSOLVENCY RESOLUTION PROCESS

94. Application by debtor to initiate insolvency resolution process 145
95. Application by creditor to initiate insolvency resolution process 146
96. Interim moratorium 146
97. Appointment of resolution professional 147
98. Replacement of resolution professional 148
99. Submission of report by resolution professional 149
100. Admission or rejection of application 150
101. Moratorium 151
102. Public notice and claims from creditors 152
103. Registering of claims by creditors 152
104. Preparation of list of creditors 152
105. Repayment plan 153
106. Report of resolution professional on repayment plan 153
107. Summoning of meeting of creditors 154
108. Conduct of meeting of creditors 155
109. Voting rights in meeting of creditors 155
110. Rights of secured creditors in relation to repayment plan 155
111. Approval of repayment plan by creditors 156
112. Report of meeting of creditors on repayment plan 156
113. Notice of decisions taken at meeting of creditors 157
114. Order of Adjudicating Authority on repayment plan 157
115. Effect of order of Adjudicating Authority on repayment plan 157
116. Implementation and supervision of repayment plan 158
117. Completion of repayment plan 158
118. Repayment plan coming to end prematurely 158
119. Discharge order 159
120. Standard of conduct 160

CHAPTER IV

BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS

121. Application for bankruptcy 160
122. Application by debtor 160
123. Application by creditor 161
124. Effect of application 162
125. Appointment of insolvency professional as bankruptcy trustee 162
126. Bankruptcy order 163
127. Validity of bankruptcy order 163
128. Effect of bankruptcy order 164
129. Statement of financial position 164
130. Public notice inviting claims from creditors 165
131. Registration of claims 165
132. Preparation of list of creditors 165
133. Summoning of meeting of creditors 166
134. Conduct of meeting of creditors 166
135. Voting rights of creditors 166
136. Administration and distribution of estate of bankrupt 167
137. Completion of administration 167
138. Discharge order 167
139. Effect of discharge 168
140. Disqualification of bankrupt 168
141. Restrictions on bankrupt 169
142. Modification or recall of bankruptcy order 169
143. Standard of conduct 170
144. Fees of bankruptcy trustee 170
145. Replacement of bankruptcy trustee 170
146. Resignation by bankruptcy trustee 171
147. Vacancy in office of bankruptcy trustee 172
148. Release of bankruptcy trustee 172

CHAPTER V

ADMINISTRATION AND DISTRIBUTION OF THE ESTATE

OF THE BANKRUPT

149. Functions of bankruptcy trustee 173
150. Duties of bankrupt towards bankruptcy trustee 173
151. Rights of bankruptcy trustee 173
152. General powers of bankruptcy trustee 174
153. Approval of creditors for certain acts 174
154. Vesting of estate of bankrupt in bankruptcy trustee 175

155. Estate of bankrupt 175
156. Delivery of property and documents to bankruptcy trustee 176
157. Acquisition of control by bankruptcy trustee 176
158. Restrictions on disposition of property 176
159. After-acquired property of bankrupt 177
160. Onerous property of bankrupt 177
161. Notice to disclaim onerous property 178
162. Disclaimer of leaseholds 178
163. Challenge against disclaimed property 179
164. Undervalued transactions 179
164A. Transactions defrauding creditors 180
165. Preference transactions 181
166. Effect of order 182
167. Extortionate credit transactions 183
168. Obligations under contracts 184
169. Continuance of proceedings on death of bankrupt 184
170. Administration of estate of deceased bankrupt 184
171. Proof of debt 185
172. Proof of debt by secured creditors 185
173. Mutual credit and set-off 186
174. Distribution of interim dividend 186
175. Distribution of property 187
176. Final dividend 187
177. Claims of creditors 188
178. Priority of payment of debts 188

CHAPTER VI

ADJUDICATING AUTHORITY FOR INDIVIDUALS AND

PARTNERSHIP FIRMS

179. Adjudicating Authority for individuals and partnership firms 190
180. Civil court not to have jurisdiction 191
181. Appeal to Debt Recovery Appellate Tribunal 191
182. Appeal to Supreme Court 191
183. Expeditious disposal of applications 191
183A. Penalty for initiating frivolous or vexatious proceedings under
Part III 192

CHAPTER VII
OFFENCES AND PENALTIES

184. Punishment for false information, etc., by creditor in insolvency
resolution process 192

185. Punishment for contravention of provisions 192
186. Punishment for false information, concealment, etc., by bankrupt 192
187. Punishment for certain actions 194

PART IV

REGULATION OF INSOLVENCY PROFESSIONALS, AGENCIES AND

INFORMATION UTILITIES

CHAPTER I

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

188. Establishment and incorporation of Board 194
189. Constitution of Board 195
190. Removal of member from office 195
191. Powers of Chairperson 196
192. Meetings of Board 196
193. Member not to participate in meetings in certain cases 196
194. Vacancies, etc., not to invalidate proceedings of Board, Officers and
employees of Board 196
195. Power to designate financial sector regulator 197

CHAPTER II

POWERS AND FUNCTIONS OF THE BOARD

196. Powers and functions of Board 197
197. Constitution of advisory committee, executive committee or other
committee 200
198. Condonation of delay 201

CHAPTER III

INSOLVENCY PROFESSIONAL AGENCIES

199. No person to function as insolvency professional agency without valid
certificate of registration 201
200. Principles governing registration of insolvency professional agency 201
201. Registration of insolvency professional agency 201
202. Appeal to National Company Law Appellate Tribunal 202
203. Governing Board of insolvency professional agency 203
204. Functions of insolvency professional agencies 203
205. Insolvency professional agencies to make bye-laws 203

CHAPTER IV
INSOLVENCY PROFESSIONALS

206. Enrolled and registered persons to act as insolvency professionals 203
207. Registration of insolvency professionals 204

208. Functions and obligations of insolvency professionals 204

CHAPTER V
INFORMATION UTILITIES

209. No person to function as information utility without certificate of
registration 205
210. Registration of information utility 205
211. Appeal to National Company Law Appellate Tribunal 206
212. Governing Board of information utility 207
213. Core services, etc., of information utilities 207
214. Obligations of information utility 207
215. Submission and authentication of financial information to
information utilities 207
216. Rights and obligations of persons submitting financial information 208

CHAPTER VI

INSPECTION AND INVESTIGATION

217. Complaints against service providers 209
218. Investigation of service providers 209
219. Show cause notice to service provider 210
220. Appointment of disciplinary committee 211

CHAPTER VII

FINANCE, ACCOUNTS AND AUDIT

221. Grants by Central Government 212
222. Board’s Fund 212
223. Accounts and audit 213

PART V
MISCELLENEOUS

224. Insolvency and Bankruptey Fund 213
225. Power of Central Government to issue directions 214
226. Power of Central Government to supersede Board 215
227. Power of Central Government to notify financial service
providers, etc. 215
228. Budget 216
229. Annual Report 216
230. Delegation 216
231. Bar of jurisdiction 216
232. Members, officers and employees of Board to the public servants 217
233. Protection of action taken in good faith 217
234. Agreements with foreign countries 217

235. Letter of request to a country outside India in certain cases 217
235A. Power of Adjudicating Authority to impose penalties 218
236. Trial of offences by Special Court 219
237. Appeal and revision 219
238. Provisions of this Code to override other laws 219
238A. Limitation 220
239. Power to make rules 221
240. Power to make regulations 224
240A. Application of this Code to micro, small and medium enterprises 233
240B. Electronic portal for facilitating procedures 234
240C. Power to make rules for cross-border insolvency 234
241. Rules and regulations to be laid before Parliament 235
242. Power to remove difficulties 235
243. Repeal of certain enactments and savings 236
244. Transitional provisions 237
245. Amendments of Act 9 of 1932 237
246. Amendments of Act 1 of 1944 238
247. Amendments of Act 43 of 1961 238
248. Amendments of Act 52 of 1962 238
249. Amendments of Act 51 of 1993 238
250. Amendments of Act 32 of 1994 238
251. Amendments of Act 54 of 2002 238
252. Amendments of Act 1 of 2004 238
253. Amendments of Act 51 of 2007 238
254. Amendments of Act 6 of 2009 238
255. Amendments of Act 18 of 2013 238
THE FIRST SCHEDULE—AMENDMENT TO THE INDIAN PARTNERSHIP
ACT, 1932 239
THE SECOND SCHEDULE—AMENDMENT TO THE CENTRAL EXCISE
ACT, 1944 239
THE THIRD SCHEDULE—AMENDMENT TO THE INCOME-TAX
ACT, 1961 239
THE FOURTH SCHEDULE—AMENDMENT TO THE CUSTOMS
ACT, 1962 239
THE FIFTH SCHEDULE—AMENDMENT TO RECOVERY OF DEBTS
DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993 239
THE SIXTH SCHEDULE—AMENDMENT TO THE FINANCE ACT, 1994 241

THE SEVENTH SCHEDULE—AMENDMENT TO THE SECURITIZATION
AND RECONSTRUCTION OF FINANCIAL ASSETS AND
ENFORCEMENT OF SECURITY INTEREST ACT, 2002 241
THE EIGHTH SCHEDULE—AMENDMENT TO SICK INDUSTRIAL
COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 241
THE NINTH SCHEDULE—AMENDMENT TO PAYMENT AND
SETTLEMENT SYSTEMS ACT, 2007 242
THE TENTH SCHEDULE—AMENDMENT TO THE LIMITED LIABILITY
PARTNERSHIP ACT, 2008 242
THE ELEVENTH SCHEDULE—AMENDMENTS TO THE COMPANIES
ACT, 2013 243
THE TWELFTH SCHEDULE— ACTS FOR THE PURPOSES OF
CLAUSE (d) OF SECTION 29A 252
THE INSOLVENCY AND BANKRUPTCY (APPLICATION TO
ADJUDICATING AUTHORITY) RULES, 2016
1. Short title and commencement 254
2. Application 254
3. Definitions 254
4. Application by financial creditor 255
5. Demand notice by operational creditor 255
6. Application by operational creditor 256
7. Application by corporate applicant 256
8. Withdrawal of application 256
9. Interim resolution professional 256
10. Filing of application and application fee 257
FORM 1— APPLICATION BY FINANCIAL CREDITOR(S) TO INITIATE
CORPORATE INSOLVENCY RESOLUTION PROCESS UNDER
CHAPTER II OF PART II/ UNDER CHAPTER IV OF PART II OF THE
CODE 257
FORM 2—WRITTEN COMMUNICATION BY PROPOSED INTERIM
RESOLUTION PROFESSIONAL 261
FORM 3— FORM OF DEMAND NOTICE/INVOICE DEMANDING PAYMENT
UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 263
FORM 4—FORM OF NOTICE WITH WHICH INVOICE DEMANDING
PAYMENT IS TO BE ATTACHED 265

FORM 5—APPLICATION BY OPERATIONAL CREDITOR (S) TO INITIATE
CORPORATE INSOLVENCY RESOLUTION PROCESS *UNDER
CHAPTER II OF PART II/UNDER CHAPTER IV OF PART II OF
THE CODE 266
FORM 5A— TO WHOMSOEVER IT MAY CONCERN 270
FORM 6—APPLICATION BY CORPORATE APPLICANT TO INITIATE
CORPORATE INSOLVENCY RESOLUTION PROCESS *UNDER
CHAPTER II OF PART II/ UNDER CHAPTER IV OF PART II OF THE
CODE 270
SCHEDULE 274
THE INSOLVENCY AND BANKRUPTCY BOARD OF
INDIA (SALARY, ALLOWANCES AND OTHER TERMS
AND CONDITIONS OF SERVICE OF CHAIRPERSON

AND MEMBERS)
RULES, 2016

1. Short title and Commencement 275
2. Definitions 275
3. Terms and conditions of service of Chairperson and members 276
4. Pay 276
5. Dearness Allowance 276
6. Entertainment Allowance 276
7. Leave 277
8. Leave Sanctioning Authority 277
9. Provident Fund and Pension 277
10. Travelling Allowance 278
11. Leave Travel Concession 278
12. Accommodation 278
13. Conveyance 279
14. Bonus 279
15. Sitting Fees and Board’s Meetings 279
16. Encashment of Leave 279
17. Facilities for medical treatment 279
18. Residuary Provisions 279
19. Terms and Conditions of Services of Part-time Members 279
20. Fee and Allowances of Part-time Members 280
21. Power to Relax 280

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

(ANNUAL REPORT) RULES, 2018

1. Short title and commencement 281
2. Definitions 281
3. Form of Annual Report 281
4. Time schedule for submission of Annual Report 281
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(FORM OF ANNUAL STATEMENT OF ACCOUNTS)

RULES, 2018

1. Short title and commencement 283
2. Definitions 283
3. Maintenance of accounts and records 283
4. Preparation and submission of annual statement of accounts of the
Board 284
FORM ‘A’—FORM OF FINANCIAL STATEMENTS 284
FORM ‘C’—RECEIPT AND PAYMENT ACCOUNTS FOR THE
PERIOD/YEAR ENDED 285
FORM ‘B’—INCOME AND EXPENDITURE ACCOUNT FOR
THE PERIOD/YEAR ENDED 287
SCHEDULE I—FUND 288
SCHEDULE II—RESERVES AND SURPLUS 289
SCHEDULE III—EARMARKED/ENDOWMENT FUNDS 289
SCHEDULE IV—SECURED LOANS AND BORROWINGS 290
SCHEDULE V—UNSECURED LOANS AND BORROWINGS 291
SCHEDULE VI—DEFERRED CREDIT LIABILITIES 291
SCHEDULE VII—CURRENT LIABILITIES AND PROVISIONS 292
SCHEDULE VIII—FIXED ASSETS 293
SCHEDULE IX—INVESTMENTS FROM EARMARKED/ENDOWMENT
FUNDS 294
SCHEDULE X—INVESTMENTS – OTHERS 294
SCHEDULE XI—CURRENT ASSETS, LOANS, ADVANCES ETC. 295
SCHEDULE XII—GRANTS/SUBSIDIES 296

SCHEDULE XIII—FEES/SUBSCRIPTIONS 296
SCHEDULE XIV—INCOME FROM INVESTMENTS 297
SCHEDULE XV—INCOME FROM ROYALTY, PUBLICATION ETC. 297
SCHEDULE XVI—INTEREST EARNED 298
SCHEDULE XVII—OTHER INCOME 298
SCHEDULE XVIII—ESTABLISHMENT EXPENSES 299
SCHEDULE XIX—OTHER ADNIMISTRATIVE EXPENSES 299
SCHEDULE XX—EXPENDITURE ON GRANTS, SUBSIDIES ETC. 300
SCHEDULE XXI—INTEREST 300
SCHEDULE – XXII—SIGNIFICANT ACCOUNTING POLICIES (Illustrative) 301
SCHEDULE – XXIII—CONTINGENT LIABILITIES AND NOTES ON
ACCOUNTS (Illustrative) 302
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(MEDICAL FACILITY TO CHAIRPERSON AND WHOLE-TIME

MEMBERS) SCHEME RULES, 2019

1. Short title and commencement 305
2. Definitions 305
3. Outdoor treatment 306
4. Indoor treatment 306
5. Monthly subscriptions 306
6. Exercise of option by beneficiary 306
INSOLVENCY AND BANKRUPTCY (APPLICATION TO
ADJUDICATING AUTHORITY FOR INSOLVENCY RESOLUTION
PROCESS FOR PERSONAL GUARANTORS TO CORPORATE

DEBTORS) RULES, 2019

1. Short title and commencement 307
2. Application 307
3. Definitions 307
4. Relatives 308
5. Excluded assets 308
6. Application by guarantor 308
7. Application by creditor 309
8. Confirmation or nomination of insolvency professional 309

9. Copy of application 309
10. Filing of application and documents 309
11. Withdrawal of application 310
FORM A—APPLICATION BY GUARANTOR TO INITIATE INSOLVENCY
RESOLUTION PROCESS 310
FORM B—FORM OF DEMAND NOTICE 318
FORM C—APPLICATION BY CREDITOR TO INITIATE INSOLVENCY
RESOLUTION PROCESS 320
FORM D—APPLICATION FOR WITHDRAWAL OF INSOLVENCY
RESOLUTION PROCESS 327
THE INSOLVENCY AND BANKRUPTCY (APPLICATION
TO ADJUDICATING AUTHORITY FOR BANKRUPTCY
PROCESS FOR PERSONAL GUARANTORS TO
CORPORATE DEBTORS) RULES, 2019

1. Short title and commencement 328
2. Application 328
3. Definitions 328
4. Relatives 329
5. Excluded assets 329
6. Application by guarantor 330
7. Application by creditor 330
8. Confirmation or nomination of insolvency professional 330
9. Public notice 330
10. Notice to creditors 330
11. Statement of financial position 330
12. Claim with proof 330
13. Notice of dividend 331
14. Copy of application 331
15. Restriction on bankrupt 331
16. Filing of application and documents 331
FORM A—APPLICATION BY GUARANTOR TO INITIATE BANKRUPTCY
PROCESS 332
FORM B—APPLICATION BY CREDITOR TO INITIATE BANKRUPTCY
PROCESS 341
FORM C—PUBLIC NOTICE 348
FORM D—NOTICE TO CREDITOR 349
FORM E—STATEMENT OF FINANCIAL POSITION OF BANKRUPT 350
FORM F—CLAIM WITH PROOF BY A CREDITOR 352

INSOLVENCY AND BANKRUPTCY (INSOLVENCY AND
LIQUIDATION PROCEEDINGS OF FINANCIAL SERVICE
PROVIDERS AND APPLICATION TO ADJUDICATING

AUTHORITY) RULES, 2019

1. Short title and commencement 357
2. Application 357
3. Definitions 357
4. General modifications 358
5. Corporate Insolvency Resolution Process of financial service providers 358
6. Filing of application and application fee 360
7. Liquidation Process 360
8. Voluntary Liquidation Process 361
9. Insolvency Professional 361
10. Assets of third parties, etc. 361
FORM 1—APPLICATION BY APPROPRIATE REGULATOR TO INITIATE
INSOLVENCY RESOLUTION PROCESS UNDER THE CODE 362
FORM 2—WRITTEN COMMUNICATION BY THE ADMINISTRATOR 364
THE INSOLVENCY AND BANKRUPTCY (PREPACKAGED
INSOLVENCY RESOLUTION PROCESS) RULES, 2021
1. Short title and commencement 365
2. Application 365
3. Definitions 365
4. Filing of application 365
FORM 1—APPLICATION BY CORPORATE APPLICANT TO INITIATE
PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS
UNDER CHAPTER III-A OF THE CODE 366
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(MODEL BYE-LAWS AND GOVERNING BOARD OF INSOLVENCY
PROFESSIONAL AGENCIES) REGULATIONS, 2016

CHAPTER I
PRELIMINARY

1. Short title and commencement 373
2. Definitions 373

CHAPTER II
BYE-LAWS

3. Insolvency professional agencies to have Bye-Laws 374
4. Amendment of Bye-Laws 374

CHAPTER III
GOVERNING BOARD

5. Composition of the Governing Board REG. 5 375
5A. Managing director 377
5B. Compliance 377
6. Self-evaluation 378
7. Compliance Officer 378

SCHEDULE

MODEL BYE-LAWS OF AN INSOLVENCY PROFESSIONAL AGENCY
I. GENERAL SCHEDULE 378
II. DEFINITIONS 378
III. OBJECTIVES 379
IV. DUTIES OF THE AGENCY 379
V. COMMITTEES OF THE AGENCY 380
VI. PROFESSIONAL MEMBERSHIP 381
VII. DUTIES OF MEMBERS 384
VIII. MONITORING OF MEMBERS 385
IX. GRIEVANCE REDRESSAL MECHANISM 385
X. DISCIPLINARY PROCEEDINGS 386
XI. SURRENDER OF PROFESSIONAL MEMBERSHIP2 AND
EXPULSION FROM PROFESSIONAL MEMBERSHIP 388

ANNEXURE

FORM A—CERTIFICATE OF PROFESSIONAL MEMBERSHIP 391
FORM B—AUTHORISATION FOR ASSIGNMENT 391
THE INSOLVENCY AND BANKRUPTCY BOARD
OF INDIA (INSOLVENCY PROFESSIONAL AGENCIES)

REGULATIONS, 2016

CHAPTER I
PRELIMINARY

1. Short title and commencement 392
2. Definitions 392

CHAPTER II
REGISTRATION

3. Eligibility for registration 393
4. Application for registration or renewal thereof 394
5. Grant of certificate of registration 395

6. Procedure for rejecting application 396

CHAPTER III

SURRENDER OR CANCELLATION OF REGISTRATION

7. Surrender of registration 397
8. Disciplinary proceedings 398
9. Appeal 399

CHAPTER IV
IN-PRINCIPLE APPROVAL

10. Grant of in-principle approval 399

SCHEDULE

FORM A—APPLICATION FOR CERTIFICATE OF REGISTRATION 400
FORM B—THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA 404
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(INSOLVENCY PROFESSIONALS) REGULATIONS, 2016

CHAPTER I
GENERAL

1. Short title and commencement 405
2. Definitions 405

CHAPTER II
INSOLVENCY EXAMINATIONS

3. 406

CHAPTER III

REGISTRATION OF INSOLVENCY PROFESSIONALS

4. Eligibility 406
5. Qualifications and experience 407
6. Application for certificate of registration 408
7. Certificate of registration 409
7A. Authorisation for assignment 411
7B. Number of Assignments 411
8. Refusal to grant certificate 411
9. [Omitted] 411

CHAPTER IV

ISSUE AND SURRENDER OF AUTHORISATION FOR ASSIGNMENT

AND DISCIPLINARY PROCEEDINGS

10. Temporary surrender 412

10A. Surrender of certificate of registration 413
10B. Special procedure for action on surrender, expulsion, etc. 413
11. Disciplinary Proceedings 414

CHAPTER V

RECOGNITION OF INSOLVENCY PROFESSIONAL ENTITIES

12. Recognition of Insolvency Professional Entities 415
13. 416
14. 418
15. Interest 418
FIRST SCHEDULE—CODE OF CONDUCT FOR INSOLVENCY
PROFESSIONALS 419
SECOND SCHEDULE 424
FORM A— UNIFIED ENROLMENT AND REGISTRATION
APPLICATION FORM 424
FORM AA—UNIFIED ENROLMENT AND REGISTRATION
APPLICATION FORM 430
FORM B—CERTIFICATE OF REGISTRATION 434
FORM C— 434
FORM D—CERTIFICATE OF RECOGNITION 436
FORM E— 437
FORM EA— 438
FORM F— 439
FORM G— 441
FORM H— 442
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(INSOLVENCY RESOLUTION PROCESS FOR CORPORATE

PERSONS) REGULATIONS, 2016

CHAPTER I
PRELIMINARY

1. Short title and commencement 444
2. Definitions 444
2A. Record or evidence of default by financial creditor 446

2B. Record or evidence of transaction, debt and default by operational
creditor 446
2C. Submission of information along with application 446
2D. Details of debt, default and limitation in respect of applications under
section 7 or section 9 446

CHAPTER II
GENERAL

3. Eligibility for resolution professional 446
3A. Assistance and cooperation by the personnel of the corporate debtor 447
4. Access to books 448
4A. Choice of authorised representative 449
4B. Disclosure of change in name and address of corporate debtor 449
4C. Process e-mail 450
4D. Operating separate bank account for each real estate project 450
4E. Handing over the possession 450
5. Extortionate credit transaction 450

CHAPTER III
PUBLIC ANNOUNCEMENT

6. Public announcement 450
6A. Communication to creditors 451

CHAPTER IV
PROOF OF CLAIMS

7. Claims by operational creditors 451
8. Claims by financial creditors 452
8A. Claims by creditors in a class 452
9. Claims by workmen and employees 452
9A. Claims by other creditors 453
10. Substantiation of claims 453
11. Cost of proof 453
12. Submission of proof of claims 453
12A. Updation of claim 454
13. Verification of claims 454
14. Determination of amount of claim 455
15. Debt in foreign currency 455

CHAPTER V
COMMITTEE OF CREDITORS

16. Committee with only operational creditors 455
16A. Authorised representative 456

16B. Committee with only creditors in a class 459
16C. Appointment of facilitators 459
16D. Roles and responsibilities of the facilitator 459
17. Constitution of committee 459

CHAPTER VI
MEETINGS OF THE COMMITTEE

18. Meetings of the committee 460
20. Service of notice by electronic means 461
19. 461
21. Contents of the notice for meeting 462
22. Quorum at the meeting 463
23. Participation through video conferencing 463
24. Conduct of meeting 464

CHAPTER VII
VOTING BY THE COMMITTEE

25. Voting by the committee 464
25A. Voting by Authorised Representative 465
26. Voting through electronic means 466

CHAPTER VIII

CONDUCT OF CORPORATE INSOLVENCY RESOLUTION PROCESS

27. Appointment of Professionals 467
28. Transfer of debt due to creditors 467
29. Sale of assets outside the ordinary course of business 468
30. Assistance of local district administration 468
30A. Withdrawal of application 468
30B. Audit of corporate debtor 469
30C. Report on the status of development rights and permissions
of real estate projects 470

CHAPTER IX

INSOLVENCY RESOLUTION PROCESS COSTS

31. Insolvency resolution process costs 470
31A. Regulatory Fee 471
31B. Approval of committee for insolvency resolution process costs 471
32. Essential supplies 471
33. Costs of the interim resolution professional 471
34. Resolution professional costs 472
34A. Disclosure of Costs 472

34B. Fee to be paid to interim resolution professional and resolution
professional 472

CHAPTER X
RESOLUTION PLAN

35. Fair value and Liquidation value 473
35A. Preferential and other transactions 475
36. Information memorandum 475
36A. Invitation for expression of interest 478
36B. Request for resolution plans 481
36C. Strategy for marketing of assets of the corporate debtor 482
37. Resolution plan 483
38. Mandatory contents of the resolution plan 484
38A. Treatment of allottees not filing claims 486
39. Approval of resolution plan 486
39A Preservation of records 489
39B. Meeting liquidation cost 490
39BA. Assessment of Compromise or Arrangement 491
39C. [Omitted] 491
39D. Fee of the liquidator 492
40. Extension of the corporate insolvency resolution process period 492
40A. Model time-line for corporate insolvency resolution process 492
40B. Filing of Forms 494
40C. Special provision relating to time-line 496
40D. Decision for liquidation 496

SCHEDULE-I

FORM A—PUBLIC ANNOUNCEMENT 496
FORM AA—WRITTEN CONSENT TO ACT AS RESOLUTION
PROFESSIONAL 498
FORM AB—WRITTEN CONSENT TO ACT AS AUTHORISED
REPRESENTATIVE 500
FORM B—PROOF OF CLAIM BY OPERATIONAL CREDITORS EXCEPT
WORKMEN AND EMPLOYEES 501
FORM C—SUBMISSION OF CLAIM BY FINANCIAL CREDITORS 504
FORM CA—SUBMISSION OF CLAIM BY FINANCIAL
CREDITORS IN A CLASS 506
FORM D—PROOF OF CLAIM BY A WORKMAN OR AN EMPLOYEE 509

FORM E—PROOF OF CLAIM SUBMITTED BY AUTHORISED
REPRESENTATIVE OF WORKMEN AND EMPLOYEES 511
FORM F—PROOF OF CLAIM BY CREDITORS (OTHER THAN FINANCIAL
CREDITORS AND OPERATIONAL CREDITORS) 513
FORM FA—APPLICATION FOR WITHDRAWAL OF CORPORATE
INSOLVENCY RESOLUTION PROCESS 516
FORM G—INVITATION FOR EXPRESSION OF INTEREST FOR 517
FORM H—COMPLIANCE CERTIFICATE 518
SCHEDULE-II 528
LAUNCH OF REVISED FORMS FOR CORPORATE INSOLVENCY

RESOLUTION PROCESS (CIRP)

(531-550)

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(LIQUIDATION PROCESS) REGULATIONS, 2016

CHAPTER I
PRELIMINARY

1. Short title and commencement 551
2. Definitions 551
2A. Contributions to liquidation costs 553
2B. Compromise or arrangement 554

CHAPTER II

APPOINTMENT AND REMUNERATION OF LIQUIDATOR

3. Eligibility for appointment as liquidator 555
4. Liquidator’s fee 556

CHAPTER III

POWERS AND FUNCTIONS OF LIQUIDATOR

5. Reporting 558
6. Registers and books of account 558
7. Appointment of professionals 559
8. Consultation with stakeholders 559
9. Personnel to extend cooperation to liquidator 560
10. Disclaimer of onerous property 560
11. Extortionate credit transactions 561

CHAPTER IV
GENERAL

12. Public announcement by liquidator 561
12A. Process email ID 562
13. Preliminary report 562
14. Early dissolution 562
15. Progress reports 563

CHAPTER V
CLAIMS

16. Submission of claim 565
17. Claims by operational creditors 565
18. Claims by financial creditors 565
19. Claims by workmen and employees 566
20. Claims by other stakeholders 566
21. Proving security interest 567
21A. Presumption of security interest 567
22. Production of bills of exchange and promissory notes 568
23. Substantiation of claims 568
24. Cost of proof 568
25. Determination of quantum of claim 568
26. Debt in foreign currency 569
27. Periodical payments 569
28. Debt payable at future time 569
29. Mutual credits and set-off 569
30. Verification of claims 569
30A. Transfer of debt due to creditors 570
31. List of stakeholders 570
31A. Stakeholders’ consultation committee 571

CHAPTER VI
REALISATION OF ASSETS

32. Sale of Assets, etc. 574
32A. [Omitted] 574
32B Conduct of meetings of the consultation committee 575
33. Mode of sale 575
34. Asset memorandum 576
35. Valuation of assets or business intended to be sold 577
36. Asset sale report 578
37. Realization of security interest by secured creditor 578

37A. Assignment of not readily realizable assets 579
38. Distribution of unsold assets 579
39. Recovery of monies due 579
40. Liquidator to realize uncalled capital or unpaid capital contribution 579

CHAPTER VII

PROCEEDS OF LIQUIDATION AND DISTRIBUTION OF PROCEEDS

41. All money to be paid in to bank account
42. Distribution 580
43. Return of money 580
44. Completion of liquidation 580
44A. Treatment of avoidance of transaction 581
45. Final report prior to dissolution 581
45A. Preservation of records 581
46. Corporate Liquidation Account 583
46A. Exclusion of certain assets from the liquidation estate 584
47. Model time-line for liquidation process 585
47A. Exclusion of period of lockdown 587
47B. Filing of Forms 587
SCHEDULE I—MODE OF SALE 591
SCHEDULE II 591
FORM A—PROFORMA FOR REPORTING CONSULTATIONS WITH
STAKEHOLDERS 591
FORM A—PROFORMA FOR REPORTING CONSULTATIONS WITH
STAKEHOLDERS 591
FORM AA—WRITTEN CONSENT TO ACT AS LIQUIDATOR 592
FORM B—PUBLIC ANNOUNCEMENT 593
FORM C—PROOF OF CLAIM BY OPERATIONAL CREDITORS EXCEPT
WORKMEN AND EMPLOYEES 594
FORM D—PROOF OF CLAIM BY FINANCIAL CREDITORS 596
FORM E—PROOF OF CLAIM BY A WORKMAN OR EMPLOYEE 598
FORM F—PROOF OF CLAIM BY AUTHORISED REPRESENTATIVE OF
WORKMEN OR EMPLOYEES 600
FORM G—PROOF OF CLAIM BY ANY OTHER STAKEHOLDER 603
FORM H—COMPLIANCE CERTIFICATE 606

FORM-I—DEPOSIT OF UNCLAIMED DIVIDENDS AND/OR
UNDISTRIBUTED PROCEEDS 611
FORM-J—WITHDRAWAL FROM CORPORATE LIQUIDATION
ACCOUNT 613
SCHEDULE III 615
THE INSOLVENCY AND BANKRUPTCY BOARD OF
INDIA (ENGAGEMENT OF RESEARCH ASSOCIATES AND

CONSULTANTS) REGULATIONS, 2017

1. Short title and commencement 624
2. Definitions 624
3. Research Associates and Consultants 625
4. Functions of Research Associates and Consultants 625
5. Qualifications, experience and remuneration 625
6. Evaluation of performance 625
7. Eelection of Research Associates and Consultants 625
8. Terms and condition of engagement 626
9. Power to relax 627
SCHEDULE I 627
SCHEDULE II 629
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(PROCEDURE FOR GOVERNING BOARD MEETINGS)

REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title and commencement 630
2. Definitions 630

CHAPTER II
BUSINESSES

3. Governing Board Businesses 631

CHAPTER III
MEETINGS

4. Convening of Meetings 632
5. Notice 632
6. Quorum 633
7. Leave of absence 633

8. Minutes of the meeting 633
9. Secretary 633

CHAPTER IV
CHARTER OF CONDUCT

10. Member not to participate in meetings in certain cases 633
11. Obligation of a Member to give information of disqualification 634
12. Declaration of fidelity 634

CHAPTER V
CONTRACTS

13. Manner and form in which contracts may be executed 634
14. Affixation of Common Seal 634

CHAPTER VI
MISCELLANEOUS

15. Power to regulate procedure in certain circumstances 635
16. Effect of any irregularity of procedure 635
17. Meetings of Committees 635
18. Relaxation 635
SCHEDULE I—OATH OF OFFICE AND SECRECY 635
SCHEDULE II—CHARTER OF CONDUCT FOR MEMBERS OF BOARD 636
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(ADVISORY COMMITTEE) REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title and commencement 639
2. Definitions 639

CHAPTER II
REGISTRATION

3. Constitution of Advisory Committee 640
4. Composition of Advisory Committee 640

CHAPTER III
MEETINGS

5. Meetings 641
6. Fee 641
7. Conduct 641

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(INFORMATION UTILITIES) REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title and commencement 642
2. Definitions 642

CHAPTER II
REGISTRATION

3. Eligibility for registration 644
4. Application for registration or renewal thereof 644
5. Disposal of application 645
6. Conditions of registration 646
7. In-principle approval 647

CHAPTER III

SHAREHOLDING AND GOVERNANCE

8. Shareholding 648
9. Composition of the Governing Board 649
9A. Managing director 650
9B. Compliance 651
10. Regulatory Committee 651
11. Compliance officer 651
12. Grievance Redressal Policy 652

CHAPTER IV

TECHNICAL STANDARDS AND BYE-LAWS

13. Technical Standards 652
14. Technical Committee 653
15. Bye-laws of information utilities 653
16. Amendment to bye-laws 654

CHAPTER V
CORE SERVICES

17. Provision of services 654
18. Registration of users 654
19. Use of different information utilities 655
20. Acceptance and receipt of information 655
21. Authentication of default 656
21A. Verification of information before issuance of a record of default 657
21B. Dissemination of public announcement 657

22. Storage of information 658
23. Access to information 658
24. Accessing information stored with other information utilities 658
25. Annual statement 658
26. Porting information from registries 658
27. Duties of the user 658

CHAPTER VI

DUTIES OF INFORMATION UTILITIES

28. General duties 659
29. Non-discrimination 659
30. Other duties 659
31. Insurance 659
32. Fee 659
33. Risk management 660
34. Audit of information technology framework 660
35. Preservation Policy 660
36. Provision of information to the Board 660
36A. Publication of statistical information 661
37. Inspection 661

CHAPTER VII

SERVICES TO INSOLVENCY PROFESSIONALS

38. Storing information submitted by insolvency professionals 661

CHAPTER VIII

SURRENDER OR CANCELLATION OF REGISTRATION

39. Exit management plan 661
40. Surrender of registration 662
41. Disciplinary proceedings 662
42. Appeal 664
SCHEDULE 664
FORM A—APPLICATION FOR CERTIFICATE OF REGISTRATION 664
FORM B—CERTIFICATE OF REGISTRATION NO 668
FORM C— 669
FORM D— RECORD OF DEFAULT 676

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(VOLUNTARY LIQUIDATION PROCESS) REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title and commencement 674
2. Definitions 674

CHAPTER II

COMMENCEMENT OF LIQUIDATION

3. Initiation of Liquidation 675
4. Effect of liquidation 676

CHAPTER III

APPOINTMENT AND REMUNERATION OF LIQUIDATOR

5. Appointment of liquidator 677
6. Eligibility for appointment as liquidator 677
7. Liquidator’s remuneration 678

CHAPTER IV

POWERS AND FUNCTIONS OF THE LIQUIDATOR

8. Reporting 678
9. Preliminary Report 678
10. Registers and books of account 679
11. Engagement of professionals 680
12. Consultation with stakeholders 680
13. Extortionate credit transactions 680
14. Public announcement by the liquidator 680

CHAPTER V
CLAIMS

15. Proof of claim 681
16. Claims by operational creditors 681
17. Claims by financial creditors 681
18. Claims by workmen and employees 682
19. Claims by other stakeholders 682
20. Proving security interest 683
21. Production of bills of exchange and promissory notes 683
22. Substantiation of claims 683
23. Cost of proof 683
24. Determination of quantum of claim 683
25. Debt in foreign currency 684

26. Periodical payments 684
27. Debt payable at future time 684
28. Mutual credits and set-off 684
29. Verification of claims 685
30. List of stakeholders 685

CHAPTER VI
REALISATION OF ASSETS

31. Manner of sale 685
32. Recovery of monies due 685
33. [Omitted] 686

CHAPTER VII

PROCEEDS OF LIQUIDATION AND DISTRIBUTION OF PROCEEDS

34. All money to be paid into bank account 686
35. Distribution 686
36. Return of money 686
37. Completion of liquidation 687
38. Final Report 688
39. Corporate Voluntary Liquidation Account 688
40. Detection of Fraud or Insolvency 690
41. Preservation of records 690
41A. Filing of Forms 691
SCHEDULE I 692
FORM A—PUBLIC ANNOUNCEMENT 692
FORM B—PROOF OF CLAIM BY OPERATIONAL CREDITORS EXCEPT
WORKMEN AND EMPLOYEES 693
FORM C—PROOF OF CLAIM BY FINANCIAL CREDITORS 695
FORM D—PROOF OF CLAIM BY A WORKMAN OR EMPLOYEE 697
FORM E—PROOF OF CLAIM BY AUTHORISED REPRESENTATIVE OF
WORKMEN OR EMPLOYEES 699
FORM F—PROOF OF CLAIM BY ANY OTHER STAKEHOLDER 702
FORM G—DEPOSIT OF UNCLAIMED DIVIDENDS AND/OR
UNDISTRIBUTED PROCEEDS 704
FORM-H—COMPLIANCE CERTIFICATE 706
FORM-I—WITHDRAWAL FROM CORPORATE VOLUNTARY
LIQUIDATION ACCOUNT 714

SCHEDULE II 715
THE INSOLVENCY AND BANKRUPTCY CODE (REMOVAL OF

DIFFICULTIES) ORDER, 2017

1. Short title and commencement 724
2. 724
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(INSPECTION AND INVESTIGATION) REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title, commencement and application 725
2. Definitions 725

CHAPTER II
INSPECTION

3. Inspection by the Board 726
4. Conduct of Inspection 727
5. Interim Inspection Report 728
6. Inspection Report 728

CHAPTER III
INVESTIGATION

7. Investigation by the Board 728
8. Conduct of Investigation 729
9. Interim Investigation Report 730
10. Investigation Report 731

CHAPTER III-A

INVESTIGATION DURING DISPOSAL OF COMPLAINT OR GRIEVANCE

10A. Investigation during disposal of complaint or grievance 731

CHAPTER III-B

INTERIM ORDER ON MATERIAL AVAILABLE ON RECORD

10B. Interim order on material available on record 731

CHAPTER IV
CONSIDERATION OF REPORT

11. Consideration of Report 732

12. Show-cause notice 732
13. Disposal of Show-cause notice 733

CHAPTER V
RESTITUTION

14. Restitution 734
FORM A 734
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (FAST
TRACK INSOLVENCY RESOLUTION PROCESS FOR CORPORATE

PERSONS) REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title and commencement 735
2. Definitions 735

CHAPTER II
GENERAL

3. Eligibility for resolution professional 737
4. Access to books 738
5. Extortionate credit transaction 738

CHAPTER III
PUBLIC ANNOUNCEMENT

6. Public announcement 738

CHAPTER IV
PROOF OF CLAIMS

7. Claims by operational creditors 739
8. Claims by financial creditors 739
9. Caims by workmen and employees 740
9A. Claims by other creditors 740
10. Substantiation of claims 741
11. Cost of proof proving the debt 741
12. Submission of proof of claims 741
13. Verification of claims 741
14. Determination of amount of claim 741
15. Debt in foreign currency 742

CHAPTER V
COMMITTEE OF CREDITORS

16. Committee with only operational creditors 742

17. Filings by the interim resolution professional 743

CHAPTER VI
MEETINGS OF THE COMMITTEE

18. Meetings of the committee 743
19. Notice for meetings of the committee 743
20. Service of notice by electronic means 743
21. Contents of the notice for meeting 744
22. Quorum at the meeting 745
23. Participation through video conferencing 745
24. Conduct of meeting 746

CHAPTER VII
VOTING BY THE COMMITTEE

25. Voting by the committeess 747

CHAPTER VIII

CONDUCT OF THE FAST TRACK PROCESS

26. Appointment of registered valuers 748
27. Transfer of debt due to creditors 748
28. Sale of assets outside the ordinary course of business 749
29. Assistance of local district administration 749

CHAPTER IX
FAST TRACK PROCESS COSTS

30. Fast track process costs 749
31. Essential supplies 750
32. Costs of the interim resolution professional 750
33. Resolution professional costs 750

CHAPTER X
RESOLUTION PLAN

34. Fair value and Liquidation value 751
35. Information memorandum 751
35A. Invitation of Resolution Plans 753
36. Resolution plan 754
37. Mandatory contents of the resolution plan 755
38. Approval of resolution plan 756
39. Extension of the fast track process period 757
SCHEDULE 758

FORM A—PUBLIC ANNOUNCEMENT 758
FORM B—PROOF OF CLAIM BY OPERATIONAL CREDITORS EXCEPT
WORKMEN AND EMPLOYEES 759
FORM C—PROOF OF CLAIM BY FINANCIAL CREDITORS 762
FORM D—PROOF OF CLAIM BY A WORKMAN OR AN EMPLOYEE 764
FORM E—PROOF OF CLAIM SUBMITTED BY AUTHORISED
REPRESENTATIVE OF WORKMEN AND EMPLOYEES 767
FORM F—PROOF OF CLAIM BY CREDITORS (OTHER THAN FINANCIAL
CREDITORS AND OPERATIONAL CREDITORS) 769
FORM G—INVITATION OF RESOLUTION PLANS 772
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(EMPLOYEES’ SERVICE) REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title and commencement 774
2. Definitions 774

CHAPTER II

APPOINTMENT, PROBATION AND TERMINATION OF SERVICE

3. Classification and appointment of employees 775
4. Recruitment 775
5. Initial Appointments to be made on minimum pay 776
6. Probation 776
7. Commencement of service 776
8. Resignation from service 776
9. Superannuation and retirement 777
10. Liquidated damages 777

CHAPTER III

RECORD OF SERVICE, SENIORITY AND PROMOTION

11. Record of service 777
12. Seniority 778
13. Promotion 778

CHAPTER IV

PAY, ALLOWANCES AND OTHER BENEFITS

14. Entitlement 778
15. Pay, allowances and other benefits 778

16. Gratuity 778
17. Pension 779
18. Cessation of pay and allowances 779
19. Increments 779
20. Fixation of pay on promotion 779
21. Hometown 779

CHAPTER V
LEAVE AND JOINING TIME

22. Leave not a matter of right 780
23. Kinds of leave 780
24. Lapse of leave on cessation of service 780
25. Obligation to furnish Leave address 780
26. Leave not admissible to an employee under suspension 781
27. Casual leave 781
28. Special casual leave 781
29. Ordinary leave 782
30. Sick leave 783
31. Maternity leave and paternity leave 783
32. Accident leave 783
33. Extraordinary leave 784
34. Joining time 784

CHAPTER – VI

CONDUCT, DISCIPLINE AND APPEALS

35. Definitions 784
36. Scope of an employee’s service 785
37. Liability to abide by regulations and directions 785
38. Obligation to maintain secrecy 785
39. Employees to promote Board’s interest 785
40. Prohibition against participation in politics and standing for election 787
41. Prohibition against joining certain associations and strikes 787
42. Contributions to the press 787
43. Employee not to seek outside employment 787
44. Employment after retirement 787
45. Employment with a service provider 788
46. Giving evidence 788
47. Acceptance of gifts 788
48. Movable, immovable and valuable property 789
49. Conviction 789

50. Prohibition of sexual harassment of women employee at work place 789
51. Penalties 790
52. Procedure for imposing major penalties 792
53. Action on the inquiry report 796
54. Procedure for imposing minor penalties 796
55. Communication of orders 796
56. Common proceedings 796
57. Special procedure in certain cases 797
58. Suspension 797
59. Subsistence allowance 798
60. Vigilance cases 798
61. Appeal 799

CHAPTER – VII
MISCELLANEOUS

62. Deputation of employees to other services 800
63. Redressal of grievances 800
SCHEDULE I 801
SCHEDULE II 809
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(GRIEVANCE AND COMPLAINT HANDLING PROCEDURE)

REGULATIONS, 2017

CHAPTER I
PRELIMINARY

1. Short title, commencement and application 811
2. Definitions 811

CHAPTER II

FILING OF GRIEVANCE AND COMPLAINT

3. Filing of grievance and complaint 812
4. Identity of the stakeholder 813
5. Registration number 813

CHAPTER III
DISPOSAL OF GRIEVANCE

6. Disposal of grievance by the Board] 813
6A. Disposal of grievance by Insolvency Professional Agency 814

CHAPTER IV

7. Disposal of complaint 814

CHAPTER V

8. STATISTICS 815
FORM A 815
THE INSOLVENCY AND BANKRUPTCY BOARD OF
INDIA (MECHANISM FOR ISSUING REGULATIONS)

REGULATIONS, 2018

CHAPTER I
PRELIMINARY

1. Short title and commencement 818
2. Definitions 818

CHAPTER II
MAKING OF REGULATIONS

3. Making regulations 819
4. Public Consultation 819
5. Economic Analysis 819

CHAPTER III

AMENDMENT AND REVIEW OF REGULATIONS

6. Amendment of Regulations 820
7. Review of Regulations 820

CHAPTER IV
MISCELLANOUS

8. Urgent regulations 820
9. Guidance on law 820
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(INSOLVENCY RESOLUTION PROCESS FOR PERSONAL
GUARANTORS TO CORPORATE DEBTORS) REGULATIONS, 2019

CHAPTER I
PRELIMINARY

1. Short title and commencement 821
2. Application 821
3. Definitions 821

l CONTENTS
CHAPTER II
GENERAL

4. Eligibility of resolution professional 822
5. Preservation of records 823
6. Debt counselling 823

CHAPTER III
REGISTRATION OF CLAIMS

7. Submission and verification of claim 823
8. Transfer of debt due to creditors 824
9. List of creditors 824
10. Statement of affairs 825

CHAPTER IV

MEETINGS OF CREDITORS AND VOTING

11. Meeting of creditors 825
12. Contents of the notice for a meeting 826
13. Quorum 826
14. Conduct of meeting 827
15. Voting by creditors 827
16. Voting by proxy 828

CHAPTER V
REPAYMENT PLAN

17. Contents of repayment plan 828
17A. Meeting of the creditors 829
17B. Non-submission of repayment plan 829
18. Purchase of assets by certain persons 829
19. Filing with the Adjudicating Authority 829
20. Breach of repayment plan by the guarantor 830
21. Application for discharge order 830
22. Non-cooperation by guarantor 830
23. Filing of Forms 830
FORM A—WRITTEN CONSENT TO ACT AS RESOLUTION
PROFESSIONAL 831
FORM B—CLAIM WITH PROOF BY A CREDITOR 832
FORM C—PROXY FORM 836

THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(BANKRUPTCY PROCESS FOR PERSONAL GUARANTORS TO
CORPORATE DEBTORS) REGULATIONS, 2019

CHAPTER I
PRELIMINARY

1. Short title, commencement and application 838
2. Definitions 838

CHAPTER II
BANKRUPTCY TRUSTEE

3. Eligibility of bankruptcy trustee 839
4. Fees of bankruptcy trustee 840
5. Appointment of professionals 840
6. Registers and books 841
7. Reports by bankruptcy trustee 841
8. Preliminary report 841
9. Early completion of administration 842
10. Progress reports 842
11. Final report 844
12. Persons to extend cooperation 844
13. Preservation of records 845

CHAPTER III
CLAIMS

14. Future claims 845
15. Negotiable instruments 845
16. Periodical payments 846
17. Determination of quantum of claim 846
18. Debt in foreign currency 846
19. Transfer of debt due to creditors 846
20. Committee of creditors 846

CHAPTER IV

MEETINGS OF COMMITTEE AND VOTING

21. Notice for meeting 847
22. Quorum 848
23. Conduct of meeting 848
24. Voting share 849
25. Voting by the committee 849
26. Voting by proxy 849

CHAPTER V
REALISATION OF ASSETS

27. Mode of sale 850
28. Acquisition, etc., of after acquired property by bankrupt 850
29. Disclaimer of onerous property 851
30. Valuation of assets 851
31. Realisation of security interest 852

CHAPTER VI

PROCEEDS OF BANKRUPTCY PROCESS AND DISTRIBUTION

OF PROCEEDS

32. Bank account for bankruptcy process 852
33. Distribution of dividend to claimant of deceased creditor 853
34. Distribution of dividend 853
35. Return of amount 853
36. Unclaimed proceeds of bankruptcy or undistributed assets 853
37. Debt counselling 854
FORM A—WRITTEN CONSENT TO ACT AS BANKRUPTCY TRUSTEE 854
FORM B—FORM TO APPOINT PROXY 856
SCHEDULE I—FEES OF BANKRUPTCY TRUSTEE 857
SCHEDULE II—MODE OF SALE 857
THE COMPANIES (REGISTERED VALUERS AND

VALUATION) RULES, 2017

CHAPTER I
PRELIMINARY

1. Short title, commencement and application 860
2. Definitions 860

CHAPTER II

ELIGIBILITY, QUALIFICATIONS AND REGISTRATION OF VALUERS

3. Eligibility for registered valuers 861
4. Qualifications and experience 863
5. Valuation Examination 864
6. Application for certificate of registration 864
7. Conditions of Registration 865
7A. Intimation of changes in personal details, etc., by registered
valuer to authority 866

8. Conduct of Valuation 866
9. Temporary surrender 867
10. Functions of a Valuer 867
11. Transitional Arrangement 867

CHAPTER III

RECOGNITION OF REGISTERED VALUERS’ ORGANISATIONS

12. Eligibility for registered valuers’ organizations 868
13. Application for recognition 869
14. Conditions of Recognition 870
14A. Intimation of changes in composition of governing board, etc., by the
registered valuers organisations to the authority 871

CHAPTER IV

CANCELLATION OR SUSPENSION OF CERTIFICATE OF

REGISTRATION OR RECOGNITION

15. Cancellation or suspension of certificate of registration or recognition 871
16. Complaint against a registered valuer or registered valuers’
organisation 871
17. Procedure to be followed for cancellation or suspension of registration
or recognition certificate 871

CHAPTER V
VALUATION STANDARDS

18. Valuation Standards 873
19. Committee to advise on valuation matters 873

CHAPTER VI
MISCELLANEOUS

20. Punishment for contravention 874
21. Punishment for false statement 874
ANNEXURE-I—MODEL CODE OF CONDUCT FOR REGISTERED
VALUERS 874
ANNEXURE-II— 877
FORM-A—APPLICATION FOR REGISTRATION AS A VALUER BY AN
INDIVIDUAL 877
FORM-B—APPLICATION FOR REGISTRATION AS A VALUER BY A
PARTNERSHIP ENTITY/COMPANY 881
FORM-C—CERTIFICATE OF REGISTRATION 885
FORM-D—APPLICATION FOR RECOGNITION 885

FORM E—CERTIFICATE OF RECOGNITION REGISTERED VALUERS’
ORGANISATION RECOGNITION NO. 888
ANNEXURE - III 888
ANNEXURE-IV—ELIGIBILITY QUALIFICATION AND EXPERIENCE
FOR REGISTRATION AS VALUER 898
ANNEXURE-V 899
THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(PREPACKAGED INSOLVENCY RESOLUTION PROCESS)

REGULATIONS, 2021

CHAPTER I
PRELIMINARY

1. Short title and commencement 900
2. Definitions 900

CHAPTER II
GENERAL

3. Meetings and communication 902
4. Essential supplies 902
5. Extortionate credit transaction 902
6. Pre-packaged insolvency resolution process costs 902

CHAPTER III
RESOLUTION PROFESSIONAL

7. Eligibility for resolution professional 903
8. Fee of resolution professional 903
9. Access to books 903
10. Appointment of professionals 904
11. Disclosure of costs 904
12. Preservation of records 904
13. Filing of reports and forms 904

CHAPTER IV
INITIATION OF PROCESS

14. Approvals by financial creditors 905
15. Choice of authorised representative 905
16. Declarations 906
17. Report by resolution professional 906
18. Information to be furnished by the applicant 906

CHAPTER V

PUBLIC ANNOUNCEMENT AND CLAIMS

19. Public announcement 907
20. List of claims 907
21. Determination of amount of claim 908
22. Debt in foreign currency 908
23. Transfer of debt due to creditors 908

CHAPTER VI
COMMITTEE OF CREDITORS

24. Committee with only creditors in a class 908
25. Committee with only operational creditors 908
26. Change in committee 909

CHAPTER VII
MEETINGS OF THE COMMITTEE

27. Meetings of the committee 909
28. Notice for meetings of the committee 909
29. Service of notice 910
30. Contents of the notice for meeting 910
31. Quorum 911
32. Participation through video conferencing 911
33. Conduct of meeting 912
34. Committee with creditors in a class 913
35. Voting by the committee 913
36. Voting by authorised representative 914
37. Voting through electronic means 914

CHAPTER VIII

VALUATION AND INFORMATION MEMORANDUM

38. Appointment of registered valuers 915
39. Fair value and liquidation value 915
40. Information memorandum 917
41. Preferential and other transactions 918

CHAPTER IX
RESOLUTION PLAN

42. Scoring and improvement of resolution plans 918
43. Invitation for resolution plans 919
44. Resolution plan 920
45. Mandatory contents of resolution plan 921

46. Submission of resolution plans 922
47. Evaluation of resolution plans 922
48. Approval of resolution plan 922
49. Application to Adjudicating Authority 923

CHAPTER X

MANAGEMENT OF AFFAIRS OF THE CORPORATE DEBTOR

50. Management during the process 924
51. Vesting of the management with resolution professional 924
SCHEDULE 925
FORM P1—WRITTEN CONSENT 925
FORM P2—LIST OF CREDITORS OF [NAME OF CORPORATE DEBTOR] 926
FORM P3— APPROVAL OF TERMS OF APPOINTMENT OF RESOLUTION
PROFESSIONAL 928
FORM P4—APPROVAL FOR INITIATING PRE-PACKAGED INSOLVENCY
RESOLUTION PROCESS OF [NAME OF CORPORATE DEBTOR] 929
FORM P5—WRITTEN CONSENT TO ACT AS AUTHORISED
REPRESENTATIVE 930
FORM P6—DECLARATION BY DIRECTOR/PARTNERS 932
FORM P7—DECLARATION REGARDING EXISTENCE OF AVOIDANCE
TRANSACTION(S) 933
FORM P8—REPORT OF THE INSOLVENCY PROFESSIONAL 934
FORM P9—PUBLIC ANNOUNCEMENT 936
FORM P10—LIST OF CLAIMS 937
FORM P11—INVITATION FOR RESOLUTION PLANS 941
FORM P12—OMPLIANCE CERTIFICATE 942
FORM P13—APPLICATION FOR TERMINATION OF PRE-PACKAGED
INSOLVENCY RESOLUTION PROCESS 949
FORM P14—APPLICATION FOR VESTING MANAGEMENT WITH
RESOLUTION PROFESSIONAL 951