IBBI reveals the rules for the process of new pre-packaged settlement. Insolvency and Bankruptcy board of India (IBBI) made regulations for the process of resolving pre-packaged resolution the recently announced.

Easier for resolution for micro, small and medium enterprises(MSMEs)

Top Lawyers: IBBI reveals the rules for the process of new pre-packaged settlement

The bankruptcy and bankruptcy (Pre-packaged bankruptcy resolution process) rules, 2021 have been introduced to provide a line that is easier for resolution for micro, small and medium enterprises(MSMEs).

Pre-packaging resurrection settlement

According to the new rules, the company applicant will create an application to begin the pre-packaging resurrection settlement of IBBI under paragraph (1) section 54C from the code in form 1, accompanied by a written statement, document, or note as referred to in Annexures in it, in electronic form, along with fees of fifteen thousand rupees.

As long as in this case, electronic facilities are not available to apply for these applications, applications, and documents that accompany it can be submitted in physical form. And wherever the accompanying documents are large, the same thing can be submitted in a portable document format scanned in data storage devices such as disc or USB flash drive that can be accepted by the authority.

Corporate applicants

Corporate applicants must serve a copy of the application to the board by registered posts or registered speed post or by hand or by electronic ways, before filing it with the authority.

The application will be submitted before the adjudicating authority in accordance with the rules of 20, 21, 22, 23, 24, and 26 from the National Company Law tribunal rules, 2016.

A corporate applicant will notify the authority about filing a winding petition against the debtor of the compan. This is after being aware of the submission.

Insolvency professional - IBBI

According to the IBBI rules, an insolvency professional can be designated as a resolution professional.  The condition is if they are independent of the corporate debtors that prevent people or entities related to debtors. These IBBI rules determine that resolution professionals and all partners and directors of insolvency professional entities must be independent of debtors.