CAIRR Update February 16, 2024

16/02/2024

Summary of the MCA Notification and IBBI Notification dated 14/02/2024 and 15/02/2024 respectively.

These notifications are integrated in our free-to-use website ca2013.com.

1. Introduction of a Central Processing Centre by the Ministry of Corporate Affairs

This notification has introduced a Central Processing Centre vide Companies (Registration Offices and Fees) Amendment Rules, 2024 w.e.f. 16th February 2024. Certain application or e-Form or documents mentioned in this notification have to be examined by the Registrar of the Central Processing Centre and decided with within 30 days from the date of its filing. 

However, these rules shall not confer any power of Inspection, production, and evidence of documents on the Registrar of the Central Processing Center in case of applications, e-Forms or documents filed and the Registrar having territorial jurisdiction shall continue to exercise his powers under the respective section. 

Click here to view the MCA Notification

2. Insolvency and Bankruptcy Board of India (“IBBI”) notifies the IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2024

The following changes have been notified by way of the aforementioned regulations:

1. The Interim Resolution Professional (“IRP”) or the Resolution Professional (“RP”), shall operate a separate bank account for each real estate project where the corporate debtor has any/multiple real estate projects.
2. Earlier, the RP had the discretion to convene a committee meeting if he considered it necessary. However, the RP has now been mandated to convene a committee meeting before thirty days from the last meeting. The committee may, however, decide to extend this interval between the meetings provided that there shall be at least one meeting in each quarter.
3. The Committee has been given the discretion to decide the timespan for which the voting will be kept open to seek votes of the members who did not vote at the meeting, by electronic voting system in accordance with Regulation 26 which shall not be less than 24 hours and shall not exceed 7 days from the circulation of the minutes. Upon creditors’ request for extension the same shall be extended in increments of 24 hours period. Further, the RP shall not allow the voting window period to be extended if the matters listed for voting have already received the requisite majority vote and an extension has already been given after the receipt of requisite majority vote.
4. Approval of the committee for insolvency resolution process costs shall be obtained by the Insolvency Professional (“IP”) by placing the operational status of the corporate debtor in each meeting of the committee.
5. The registered valuers shall now in addition to the existing procedure, also explain the methodology being adopted to arrive at the valuation to the members of the committee before computation of estimates.
6. The undertaking that is received from the members before providing them fair value and the liquidation value by the RP will now also cover the non-usage and maintenance of confidentiality of the valuation report along with the fair value and the liquidation value.
7. The information memorandum which is submitted to the prospective resolution applicant shall now also include the fair value. If the non-disclosure is considered to be more beneficial for the resolution process, the committee may decide not to disclose.
8. The RP after the approval of the committee may invite a resolution plan for each real estate project or group of projects of the corporate debtor.
9. The committee may, for the purpose of implementing the resolution plan, require a monitoring committee and the same maybe constituted with the RP or propose another IP, or any other person as its members while approving the resolution plan. Further, the monthly fee payable to RP shall not exceed the monthly fee received by him during the corporate insolvency resolution process.
10. If an application is made to the Adjudicating Authority for the extension of corporate insolvency resolution process period, the RP shall continue to discharge his responsibilities under the corporate insolvency resolution process, till the application is decided by the Adjudicating Authority.

Click here to view the IBBI Notification.