IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024
The Insolvency and Bankruptcy Board of India (IBBI) has issued the “Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024.” These amendments exercise powers conferred by clause (t) of sub-section (1) of section 196 and section 240, read with clause (e) of section 2 of the Insolvency and Bankruptcy Code, 2016. The amendments primarily focus on changes to the regulations related to the bankruptcy process for personal guarantors to corporate debtors.
Key Amendments:
1. Changes in Regulation 3:
In the principal regulations (Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019), amendments have been made to Regulation 3, Sub-regulation (1), Explanation:
- Clause (a): After the word and mark “guarantor;”, the word “and” shall be inserted.
- Clause (b): For the mark and word “; and”, the mark “.” shall be substituted.
- Clause (c): This clause shall be omitted.
2. Changes in Regulation 5:
In the principal regulations, specifically in Regulation 5, Sub-regulation (1), the proviso has been amended:
- Clause (c): This clause shall be omitted.
Conclusion:
The amendments introduced by the IBBI in the “Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024” primarily focus on refining and modifying certain clauses in the existing regulations. The changes in Regulation 3 involve adjustments in the explanation section, whereas Regulation 5 sees the omission of a specific clause in the proviso.
Stakeholders, including insolvency professionals, personal guarantors, and corporate debtors, should carefully review these amendments to ensure compliance with the updated regulations governing the bankruptcy process for personal guarantors to corporate debtors.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 31st January, 2024
Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024
No. IBBI/2023-24/GN/REG108.In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 and section 240 read with clause (e) of section 2 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to amend the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, namely:
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 (hereinafter referred to as ‘the principal regulations’), in regulation 3, in sub-regulation (1), in explanation,
(i) in clause (a), after the word and mark “guarantor;”, the word “and” shall be inserted.
(ii) in clause (b), for the mark and word “; and”, the mark “.” shall be substituted.
(iii) clause (c) shall be omitted.
3. In the principal regulations, in regulation 5, in sub-regulation (1), in the proviso, clause (c) shall be omitted.
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./726/2023-24]
Note: The Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 were published vide Notification No. IBBI/2019-20/GN/REG051, dated 20th November, 2019 in the Gazette of India, Extraordinary, Part III, Section 4, No. 412 on 20th November, 2019.
