IBBI vide press release dated December 15, 2017 has issued guidelines for Insolvency Professional to act as liquidators called the Insolvency Professionals to Act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2017. The key takeaways of the guidelines are:
Panel of IPs
✓ The Board will prepare a Panel of IPs for appointment as Interim Resolution Professional (“IRP”) or Liquidator and share the said Panel with Adjudicating Authority (“AA”). The AA may pick up any name from the Panel for appointment of IRP or Liquidator for a corporate insolvency resolution process (“CIRP”) or Liquidation, as the case may be.
The Panel will have Bench wise list of IPs based on the registered office of the IP. It will have a validity of six months and a new Panel will replace the earlier Panel every six months.
✓ An IP will be eligible to be in the Panel of IPs if (a) there is no disciplinary proceeding pending against him, (b) he has not been convicted at any time in the last three years by a court of competent jurisdiction, (c) he expresses his interest to be included in the Panel for the relevant period.
An IP will be included in the Panel against the Bench under whose jurisdiction his registered office is located. For example, an IP located in Kolkata will be included in Panel against the Kolkata Bench of the AA. The areas covered in respect of different Benches of the AA have been elaborated in the press release.
*As carried by Lex Favios Newsletter