The Insolvency and Bankruptcy Board of India recognizes two Insolvency Professional Entities

New Delhi, Mar 7 (KNN) The Insolvency and Bankruptcy Board of India (IBBI) has recently recognised two Insolvency Professional Entities (IPEs) - IRR Insolvency Professionals Private Limited; and AAA Insolvency Professionals LLP.

An IPE is jointly and severally liable for all acts or omissions of its partners or directors as IPs committed during such partnership or directorship.

A limited liability partnership, a registered partnership firm or a company may be recognised by the IBBI as an IPE if a majority of the partners of the limited liability partnership or registered partnership firm are registered as insolvency professionals (IPs); or a majority of the whole-time directors of the company are registered as insolvency professionals, as the case may be.

The Insolvency Professionals (IPs) are registered and regulated by the IBBI. They have a critical role in transactions under the Insolvency and Bankruptcy Code, 2016 (Code). The Code and regulations made there under provide for strengthening their capacity on a continuous basis.

The Insolvency and Bankruptcy Code, 2016 is considered as the biggest economic reform next only to GST. It offers a market determined, time bound mechanism for orderly resolution of insolvency, wherever possible, and orderly exit, wherever required.