The Insolvency and Bankruptcy Board of India (IBBI) has issued the “Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2024,” exercising powers conferred by sections 196 and 205 read with section 240 of the Insolvency and Bankruptcy Code, 2016. The amendments focus on the validity period of authorizations for assignment issued or renewed by the Agency.
Key Amendments:
1. Substitution of Clause 12A in Para VI:
In the Schedule of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, amendments have been made in Para VI, Clause 12A. Sub-clause (6) has been substituted with the following:
- Sub-clause (6): An authorization for assignment issued or renewed by the Agency shall be valid for one year from the date of issuance or renewal. Two provisos have been added:
- The first proviso specifies that the authorization shall be valid until the 30th of June if the expiry falls between January 1st and June 30th, or until the 31st of December if the expiry falls between July 1st and December 31st.
- The second proviso mentions that if the professional member attains the age of seventy years during this period, the authorization for assignment shall be valid until such date.
Conclusion: The amendments introduced by the IBBI primarily focus on the validity period of authorizations for assignment issued or renewed by the Agency. The modifications bring clarity to the duration of the authorization, introducing specific dates for validity based on the period of expiry. Additionally, consideration is given to professionals who attain the age of seventy years during the authorization period.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 31st January, 2024
Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional
Agencies) (Amendment) Regulations, 2024
No. IBBI/2023-24/GN/REG111.— In exercise of the powers conferred by sections 196 and 205 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 (Model Bye Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, namely: –
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (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 (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, in the Schedule, in para VI, in clause 12A, for sub-clause (6), the following sub-clause shall be substituted, namely: –
“(6) An authorisation for assignment issued or renewed by the Agency shall be valid for a period of one year from the date of its issuance or renewal, as the case may be:
Provided that an authorisation for assignment issued or renewed by the Agency shall be valid till 30th of June of the year where the expiry of the period of one year falls from 1st of January to 30th of June, or till 31st of December of the year where the expiry of the period of one year falls from 1 st of July to 31st of December:
Provided further that if the professional member attains the age of seventy years during this period, the authorisation for assignment shall be valid till such date.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./729/2023-24]
Note: The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 were published vide Notification No. IBBI/2016-17/GN/REG001 dated 21st November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 421 on 22nd November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023 published vide Notification No. IBBI/2023-24/GN/REG105 dated 18th September 2023, in the Gazette of India, Extraordinary, Part III, Section 4, No. 644 on 18th September 2023.
