The Insolvency and Bankruptcy Board of India (IBBI) on June 07, 2023, issued the Discussion Paper on measures for increasing the possibility of resolution, value of resolution plan, and enabling timely resolution. This paper analyses resolution processes that have been completed and are ongoing and presents the understanding of issues that are adversely affecting the efficiency and effectiveness of the resolution process. The issues are of a wide spectrum and proposals have been made to resolve the same.
On Timeline for providing information for assignment of debt, it is proposed that “In the event a creditor assigns or transfers the debt due to such creditor to any other person during the insolvency resolution process period, both parties shall provide the interim resolution professional or the resolution professional, as the case may be, the terms of such assignment or transfer and the identity of the assignee or transferee within seven days of such assignment or transfer”.
On Seeking information from personnel of the corporate debtor, it is proposed that “The personnel of the corporate debtor, its promoters or any other person associated with the management shall provide a list of all assets and records while handing over the control and custody of assets and records to the interim resolution professional or resolution professional, as the case maybe”.
On Modification of Timelines for Submission and Consolidation of Claims, it is proposed that “A creditor, who fails to submit claim with proof within the time stipulated in the public announcement, may submit the claim with proof to the interim resolution professional or the resolution professional, as the case may be, not later than the date of issue of request for resolution plans under Regulation 36B or ninety days from the insolvency commencement date, whichever is later”.
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