CAIRR Update November 24, 2020

November 24, 2020

Summary of Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2020 issued by IBBI on November 23, 2020

• These Guidelines shall come into effect for appointments as Interim Resolution Professionals (IRP), Liquidator, Resolution Professionals (RP) and Bankruptcy Trustee (BT) with effect from January 1, 2021 in supersession of the earlier Guidelines issued on June 2, 2020.
• It seeks to cut down the time taken by IBBI (Board) for the process of appointment of IRP, RP, Liquidators and BTs under various sections and rules of the IBC 2016 by having a ready Panel of IPs recommended by the Board. The Adjudicating Authority (AA) need only to pick up any name from the Panel for appointment while issuing the Order itself.
• This Panel will have validity of six months and a new Panel will replace the earlier Panel every six months.

1. Conditions for Inclusion of IPs in the Panel : no persons who are to be part of the panel can have disciplinary proceeding pending against them or been convicted at any time in the last three years. They must also expresses interest to be included and hold a valid Authorisation for Assignment (AFA).

2. Ongoing Assignments-The eligible IPs will be included in the Panel in the order of the volume of ongoing processes they have in hand. The IP who has the lowest volume of ongoing processes will get a score of 100 and will be at the top of the Panel. Those with the highest volume will score a 0 and will be at the bottom of the Panel.

3. Obligations of the IP – IPs in the Panel cannot withdraw their interest, decline to act as IRP, Liquidator, RP or BT or surrender their registration to the Board.

4. An IP will be included in the Panel against the Zone where his registered office is located.

It is to be noted that the AA may still require the Board to recommend an IP from or outside the Panel in some cases.

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