IBBI refines assignment module to enhance insolvency process efficiency, ET LegalWorld
Highlights
- The Insolvency and Bankruptcy Board of India has refined the Assignment Module to streamline the assignment process for Insolvency Professionals and improve record-keeping.
- Insolvency Professionals are now required to add assignments to the IBBI electronic portal within three days of their appointment, with specific deadlines set for ongoing and closed cases.
- The new directions from IBBI aim to enhance efficiency and transparency in insolvency proceedings by identifying seven distinct categories of assignments for Insolvency Professionals.
The Insolvency and Bankruptcy Board of India (IBBI) has refined the Assignment Module to streamline the process and ensure thorough record-keeping by reducing compliance burdens and minimizing delays.
An Insolvency Professional (IP) functions in various capacities under the Insolvency and Bankruptcy Code, 2016.
| The direction mandates IPs to add assignments on the IBBI’s electronic portal upon their appointment in the following processes and capacities: |
| a. Interim Resolution Professional (IRP) under the Corporate Insolvency Resolution Process (CIRP). |
| b. Resolution Professional (RP) under the CIRP. |
| c. Liquidator under the Liquidation Process. |
| d. Liquidator under the Voluntary Liquidation Process. |
| e. Resolution Professional under Insolvency Resolution for Personal Guarantors |
| d. Bankruptcy Trustee under the Bankruptcy Process for Personal Guarantors. |
| g. Administrator under Insolvency and Liquidation Proceedings of Financial Service Providers |
“The new notification of IBBI is intended to streamline the process of assignment allocated to insolvency professionals. The modifications in the assignment module are taking into account the 7 categories of assignments allotted to the IPs,” said Jyoti Prakash Gadia, Managing Director at Resurgent India.”By identifying the 7 different stages of the insolvency process which will be updated at each stage with the assigned password. This is essentially a procedural guideline to bring in efficiency and transparency in functioning and operations,” he added.
Currently, IPs add their assignments on the IBBI portal for appointments as Interim Resolution Professionals or Resolution Professionals under the Corporate Insolvency Resolution Process (CIRP), as well as for liquidators in liquidation and voluntary liquidation processes.
Upon assignment approval, subsequent reporting requirements such as public announcements, EOIs, auction notices, and various forms, are made available for submission to the board.
Further, presently there is no requirement for adding assignments relating to Resolution Professionals under Insolvency Resolution of Personal Guarantors, Bankruptcy Trustees under the Bankruptcy Process of Personal Guarantors, and Administrators under Insolvency and Liquidation Proceedings of Financial Service Providers.
The IP shall proceed with subsequent compliances, including reporting requirements such as public announcements, EOIs, and auction notices, as applicable under different processes outlined in the Code, after the addition of the assignment and IBBI’s approval of the same.
| The directions also outline timelines for filing of assignment shall be as follows: |
| a. New Assignments: For all cases commencing from the date of issuance of this circular, the IP shall add the assignment to the designated system within three (3) days of his/her appointment. |
| b. Ongoing Cases: For all ongoing cases (i.e., cases initiated before the issuance of this circular) where the assignment has not already been added, the IP shall add the assignment by February 28, 2025. |
| c. Closed Cases: For all closed cases where the assignment has not already been added, the IP shall add the assignment by March 31, 2025. However, for closed cases relating to Personal Guarantors, the assignments shall be added by April 30, 2025. |
IBBI has issued the circular exercising power under Section 196 of the Insolvency and Bankruptcy Code, 2016.
