IBBI amends liquidation process regulations
New Delhi, Aug 7 (KNN) The Insolvency and Bankruptcy Board of India (IBBI) has amended regulations for the liquidation process, providing more clarity on fee payable to liquidators.
The Ministry of Corporate affairs (MCA) on Thursday in a statement said that there have been instances where a liquidator realises the amount while another liquidator distributes the same to stakeholders.
''The amendment made to the Regulations today clarifies that where a liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him,'' an official statement read.
''Likewise, where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him,'' the statement added.
The regulations require the Committee of Creditors (CoC) to fix the fee payable to the liquidator. Where the fee has not been fixed by the CoC, the regulations provide for a fee as a percentage of the amount realised and of the amount distributed by the liquidator.
The Insolvency and Bankruptcy Board of India (IBBI) is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India. It was established on 1 October 2016 and given statutory powers through the Insolvency and Bankruptcy Code, which was passed by Lok Sabha on 5 May 2016.