Circulars in relation to Insolvency Professionals & CIRP under Insolvency & Bankruptcy Code, 2016

IP not to outsource his responsibilities.

No, outsource any of his duties and responsibilities under the Code.
She shall not require any certificate from another person certifying
eligibility of a resolution applicant.

IP to Ensure compliance with provisions of the applicable laws.

• While acting as an IRP, RP or a Liquidator, an IP to take all
  necessary steps to ensure the corporate person undergoing any
  the process under the Code complies with the applicable laws.
•  If a corporate person during any of the aforesaid processes
  under the Code suffers any loss, including the penalty, if any, on
  the account of non-compliance of any provision of the
  applicable laws, such loss shall not form part of insolvency
  resolution process cost or liquidation process cost.

IP to use Registration Number & Registered Address in all his communications.

•  In all his communications, whether by way of public announcement or otherwise to a stakeholder or to an authority, an IP shall prominently state:
  (i) his name, address, and email, as registered with the IBBI,
  (ii) his Registration Number as an IP, and
  (iii) the capacity in which he is communicating (Example: As IRP of XYZ Limited, As RP of ABC Limited, etc.)
•  Use a process (Example: CIRP, Liquidation, etc.) specific address and email in its communications, if he considers it necessary subject to the conditions that:
  (i) the process specific address and email are in addition to the details required above, and
  (ii) the IP continues to service the process specific address and email for at least six months from conclusion of his role in the process.

Disclosures

Disclosures to IPA by IPs and other Professionals appointed by IPs
conducting Resolution Processes.
IPs are authorized to appoint registered valuers, accountants, legal
and other professionals to assist him in discharge of his duties in
resolution process. An IP and every other professional appointed
by him shall make disclosures as specified in this circular.
[Refer Annexure-1 for details]

Fees payable to IP and to other professionals appointed by him.

•  IP shall render services for a fee which is a reasonable reflection of his work;
•  raise bills/ invoices in his name towards such fees, and
•  Such fees shall be paid to his bank account.
•  Any payment of fees for the services of an IP to any person other than IP shall not form part of the IRP cost.
•  Any other professional appointed by IP shall raise bills /invoices in his / its (such as registered valuer) name towards such fees, and such fees shall be paid to his / its bank account.

Confidentiality of Information relating to Processes under IBC
An IP, whether acting as IRP, RP or Liquidator shall not disclose
information, except as provided for in the Code, or rules,
regulations or circulars issued thereunder, is restricted. (referred
clause 21 of the Code of Conduct appended to the First Schedule
to IBBI (Insolvency Professionals) Regulations, 2016].

Designated website for publishing Forms under the Regulations.
IBBI has specified Forms for publishing Public Announcements and
Invitations of Resolution Plans on the designated website
www.ibbi.gov.in.
IRP, RP or the liquidator shall send the Forms to IBBI for publishing
the same on the designated website “www.ibbi.gov.in” in the
manner provided in the circular. (please refer the circular)

Fee and other Expenses incurred for CIRP to be reasonable,
details of inclusion and exclusions in IRP Cost. Also given below-
 Details of Provisions and Pronouncements having a
bearing on Fee and other Expenses of CIRP;
 An illustrative list of factors considered in determination
of reasonability of fees and expenses paid to IRP/RP.
[refer circular for more details]

Appointment of Authorised Representative for Classes of Creditors under section 21 (6A) (b) of the code.
Wherever the approval of resolution plan under regulation 39 (3) is at least 15 days away, RP shall expeditiously obtain, by electronic means, the choice of the insolvency professional from creditors in a class to act as the authorised representative of the class and proceed further in the manner as specified in regulation 16A of the Regulations.

Mandatory requirement in Notice for Meetings of the Committee of Creditors.
IRP or RP shall, in every notice of meeting of the CoC and any other communication addressed to the financial creditors, other than creditors under section 21 (6A) (b), require that they must be represented in the CoC or in any meeting of the CoC by such persons who are competent and are authorised to take decisions on the spot and without deferring decisions for want of any internal approval from the financial creditors.

Valuation under the Insolvency and Bankruptcy Code, 2016
(i) Appointment of any person, other than a ‘registered valuer’,
that is, a valuer registered with the IBBI, on or after 1st February,
2019, is illegal and amounts to violation of the Circular aforesaid;
and
(ii) Payment, whether as fee or otherwise, to any person, other
than a ‘registered valuer’ for any valuation referred to in
paragraph (i), shall not form part of the insolvency resolution
process costs or liquidation cost.

Disclosures

Filing of Forms for the purpose of monitoring CIRPs and performance of IPs under the IBC, 2016 and the regulations made thereunder.

In order to facilitate submission of records and information by IPs to the IBBI as well as for monitoring of the processes and performance of IPs, a set of Forms were finalised in consultation with the IPAs.

Please refer circular for more details.

Deposit of unclaimed dividends and / or undistributed proceeds of liquidation process in accordance with regulation 46 IBBI (Liquidation Process) Regulations, 2016.

The liquidators to deposit into the designated account in circular
in accordance with regulation 46 of the Regulations. Also
provide the particulars of the amount deposited into the
account as per Form-I of the Schedule II to the Regulations and
send a scanned signed copy of the said Form-I electronically to
liq.cirp@ibbi.gov.in.

Deposit of unclaimed dividends and / or undistributed proceeds
of voluntary liquidation process in accordance with regulation 39
of the Insolvency and Bankruptcy Board of India (Voluntary
Liquidation Process) Regulations, 2017.

The liquidators to deposit designated account in circular the
amount of unclaimed dividends and/or undistributed proceeds
of voluntary liquidation processes into the aforesaid account in
accordance with regulation 39 of the Regulations and provide
the particulars of the amount deposited into the said account as
per Form-G of the Schedule I to the Regulations and send a
scanned signed copy of the said Form-G electronically to
liqvol@ibbi.gov.in.

Feature for modification of CIRP Forms (including IP-1 Form)
submitted by IP in compliance of regulation 40B of CIRP
Regulations.

The supply of information memorandum to the Prospective Resolution Applicant.

of such notice or arising