4 January 2017
On 15 December 2016, the involuntary liquidation provisions in the Insolvency and Bankruptcy Code 2016 (the IBC) came into effect. Along with this, the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016 (the Regulations) were published and came into effect. The Regulations seek to improve the liquidation process with a view to spending less time and costs in the execution and maximising creditor recoveries. They set out the procedural aspects of the new liquidation processes including: the appointment, remuneration, powers and functions of a liquidator; details on how creditors can make claims; and information about the realisation and distribution process.
New liquidation processes under the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016