IBBI requests solution professionals to upload judicial orders quickly Achi-News

This, the insolvency regulator said, would ensure that important judicial orders that can have a significant impact on the ongoing proceedings under the Insolvency and Bankruptcy Code (IBC) are made available to stakeholders in a timely manner.

The regulator said that orders such as accepting bankruptcy petitions, approving corporate rescue plans and liquidation orders issued by tribunals and decisions by the high courts and the Supreme Court relating to the government, the regulator or an interpretation of the law be spread quickly.

Also, court orders relating to the extent of law or code authority and applicability of the bankruptcy code, rules and regulations must be uploaded by the professionals, who have direct access to them.

The idea is to improve efficiency in sharing information with the parties in the bankruptcy ecosystem to ensure better debt resolution outcomes.

This comes at a time when the government is preparing to implement a technology platform that would connect all the players in the distressed assets market, including lenders, administrators of insolvent companies, tribunals and courts, the regulator and the Ministry Corporate Affairs. The government is keen to ensure a free flow of information so that informed decisions are made at different levels, as timely access to information affects the value of assets and is essential for making investment decisions.

IBBI said resolution professionals must also upload tribunal orders closing or withdrawing bankruptcy cases as well as settlements, suspension orders and the final orders on preferential, depreciating, fraudulent and excessive credit transactions and fraudulent and unfair trading. Professionals must also upload any other tribunal order that has an action point to the regulator.

Insolvency resolution professionals have been directed to upload only the orders issued on the official websites of the respective forum, explained Yogendra Aldak, partner at Lakshmikumaran & Sridharan Attorneys.

“This step will ensure that stakeholders are not restricted from accessing orders that could have a significant impact on the ongoing resolution process due to their inability to navigate the unfamiliar portals or websites of these forums which are otherwise designed to” w use by individuals with legal. background. This step of the IBBI is certainly going to make the process more accessible to all stakeholders and ensure more transparency,” Aldak said.

Improving the outcome of bankruptcy cases – rescuing as many sick companies as possible in the shortest time has been a priority for the government. IBBI has been constantly refining the procedures, including the process of applying for stressed assets, in order to save time and costs for the parties involved. The number of resolution plans approved in FY24 had crossed 250 by the end of February due to rule changes and filling vacancies in tribunals, Mint had reported on 27 March.

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Published: 10 May 2024, 07:30 PM IST