The Government has notified vide Notification No. IBBI/2022-23/GN/REG096, Dated: 20-09-2022, the IBBI (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2022. A new regulation 31 has been inserted. As per the new regulation, a regulatory fee calculated @ of 0.25% of the realisable value to creditors shall be payable to the Board, in case where the realisable value is more than the liquidation value. Further, this regulation shall be applicable only where the resolution plan is approved u/s 31 on or after 01.10.2022.
Also, A regulatory fee calculated at the rate of one per cent of the cost being booked in insolvency resolution process costs in respect of hiring any professional or other services by the interim resolution professional or resolution professional, as the case may be, for assistance in a corporate insolvency resolution process.
Full Text of Notification is as under
GAZETTE OF INDIA
EXTRAORDINARY
PART III, SECTION 4
PUBLISHED BY AUTHORITY
NEW DELHI, TUESDAY, SEPTEMBER 20, 2022
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 20th September, 2022
No. IBBI/2022-23/GN/REG096.- In exercise of the powers conferred by clause (c) and clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely: –
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2022.
(2) They shall come into force with effect from 1st October, 2022.
2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), in regulation 31, after clause (b), the following shall be inserted, namely:-
“(ba) fee payable to the Board under regulation 31A;”
3. In the principal regulations, after regulation 31, the following shall be inserted, namely:-
“31A. Regulatory Fee
(1) A regulatory fee calculated at the rate of 0.25 per cent of the realisable value to creditors under the resolution plan approved under section 31, shall be payable to the Board, where such realisable value is more than the liquidation value:
Provided that this sub-regulation shall be applicable where resolution plan is approved under section 31, on or after 1st October 2022.
(2) A regulatory fee calculated at the rate of one per cent of the cost being booked in insolvency resolution process costs in respect of hiring any professional or other services by the interim resolution professional or resolution professional, as the case may be, for assistance in a corporate insolvency resolution process, shall be payable to the Board, in the manner as specified in clause (cb) of sub-regulation (2) of regulation (7) of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.”
RAVI MITAL, Chairperson
[ADVT. – ________]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG004, dated 30th November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2022 published vide notification No. IBBI/2021-22/GN/REG093, dated the 16th September, 2022 in the Gazette of India, Extraordinary, Part III, Section 4, No. 455 on 16th September, 2022.
