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CIRP, DISCLOSURE

19-08-2020 Disqualification of an IP due to Bias, being Ex-employee/Pensioner of applicant SBI Case SC Concluded (NCLAT) Delhi is not correct

NCLT New Delhi(PB) on 04.01.2020 in State Bank of India vs M/s. Metenere Limited [CP No. IB-639(PB)/2018]

Mr. Sailesh Verma. It is submitted that Mr. Sailesh Verma is an ex-employee of SBI; joined the services of SBI in the year 1977 and since then he had been working with SBI till his retirement in 2016. He has been in the services of SBI for a period of over 39 years. Thus there is an apprehension of bias against the appointment of the proposed IRP.

NCLAT : disqualified or ineligible to act as an ‘Interim Resolution Professional’.

NOW

Finally the Hon’ble SCI on 19.08.2020 in State Bank of India vs M/s. Metenere Ltd (Civil Appeal No. 2570 of 2020) disposed the matter, observing as under;

  • “We are prima facie satisfied that the approach adopted by the National Company Law Appellate Tribunal, New Delhi (NCLAT) is not correct that merely Resolution Professional who remained in the Service of SBI and is getting pension, was disentitled to be Resolution Professional.”

 

CIRP, IBC, NCLT

IBBI INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) REGULATIONS, 2016 07-08-2020 4A. CHOICE OF AUTHORISED REPRESENTATIVE 16A. AUTHORISED REPRESENTATIVE   39. APPROVAL OF RESOLUTION PLAN.

buchasia.com/ip

IBBI INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) REGULATIONS, 2016 07-08-2020

4A. CHOICE OF AUTHORISED REPRESENTATIVE. 
Inserted 4A (2) (aa) having their addresses, as registered with the Board, in the State or Union Territory, as the case may be, which has the highest number of creditors in the class as per their addresses in the records of the corporate debtor: Provided that where such State or Union Territory does not have adequate number of insolvency professionals, the insolvency professionals having addresses in a nearby State or Union Territory, as the case may be, shall be considered;”.
IBBI INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) REGULATIONS, 2016 07-08-2020

16A. AUTHORISED REPRESENTATIVE.
substituted, “(9) The authorised representative shall circulate the agenda to creditors in a class, and may seek their preliminary views on any item in the agenda to enable him to effectively participate in the meeting of the committee: Provided that creditors shall have a time window of at least twelve hours to submit their preliminary views, and the said window opens at least twenty-four hours after the authorised representative seeks preliminary views: Provided further that such preliminary views shall not be considered as voting
instructions by the creditors.”.
IBBI INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) REGULATIONS, 2016 07-08-2020

39. APPROVAL OF RESOLUTION PLAN.
substituted, “(3) The committee shall- (a) evaluate the resolution plans received under sub-regulation (2) as per evaluation matrix;
(b) record its deliberations on the feasibility and viability of each resolution plan; and (c) vote on all such resolution plans simultaneously. (3A) Where only one resolution plan is put to vote, it shall be considered approved if it receives requisite votes. (3B) Where two or more resolution plans are put to vote simultaneously, the resolution plan, which receives the highest votes, but not less than requisite votes, shall be considered as approved: Provided that where two or more resolution plans receive equal votes, but not less than requisite votes, the committee shall approve any one of them, as per the tie-breaker formula announced before voting: Provided further that where none of the resolution plans receives requisite votes, the committee shall again vote on the resolution plan that received the highest votes, subject to the timelines under the Code.
CIRP, DISCLOSURE, IBC

05-08-2020 (1) Replacement of IP IN Voluntary Liquidation Process (2) Fees Table Clarification Liquidation Process

THE GAZETTE OF INDIA
EXTRAORDINARY
PART III, SECTION 4
PUBLISHED BY AUTHORITY
NEW DELHI, WEDNESDAY, AUGUST 5, 2020
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, August 5, 2020
Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second
Amendment) Regulations, 2020
No. IBBI/2020-21/GN/REG.063.- In exercise of the powers conferred by clause (t) of subsection
(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 (Voluntary
Liquidation Process) Regulations, 2017, namely: –
1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India
(Voluntary Liquidation Process) (Second Amendment) Regulations, 2020.
(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 (Voluntary Liquidation Process)
Regulations, 2017, for regulation 5, the following regulation shall be substituted, namely: –
“5. Appointment of liquidator.
(1) Subject to regulation 6, the corporate person shall appoint an insolvency professional as
liquidator, and, wherever required, may replace him by appointing another insolvency
professional as liquidator, by a resolution passed under clause (c) of sub-section (3) of section
59 or clause (c) of sub-regulation (1) of regulation 3, as the case may be:
Provided that such resolution shall contain the terms and conditions of appointment of
the liquidator, including the remuneration payable to him.
(2) The insolvency professional shall, within three days of his appointment as liquidator,
intimate the Board about such appointment.”.
Dr. M. S. Sahoo
Chairperson
Insolvency and Bankruptcy Board of India
[ADVT ………………………]
Note: The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process)
Regulations, 2017 were published vide notification No. IBBI/2016-17/GN/REG010 on 31st
March, 2017 in the Gazette of India, Extraordinary, Part III, Section 4, No. 130 dated 31st
March, 2017 and were last amended by the Insolvency and Bankruptcy Board of India
(Voluntary Liquidation Process) (Amendment) Regulations, 2020 published vide notification
No. IBBI/2019-20/GN/REG054 dated 15th January, 2020 in the Gazette of India,
Extraordinary, Part III, Section 4, No. 26 on 15th January, 2020.

 

===================================================

THE GAZETTE OF INDIA

EXTRAORDINARY

PART III, SECTION 4

PUBLISHED BY AUTHORITY

NEW DELHI, WEDNESADAY, AUGUST 5, 2020

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

NOTIFICATION

New Delhi, August 5, 2020

Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment)

Regulations, 2020

No. IBBI/2020-21/GN/REG062.- In exercise of the powers conferred by clause (t) of subsection

(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 (Liquidation

Process) Regulations, 2016, namely: –

  1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India

(Liquidation Process) (Third Amendment) Regulations, 2020.

(2) They shall come into force on the date of their publication in the Official Gazette.

  1. In the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

(hereinafter referred to as the principal regulations), in regulation 4, in sub-regulation (2), in

clause (b), after the Table, the following Clarification shall be inserted, namely:-

“Clarification: For the purposes of clause (b), it is hereby clarified that where a liquidator

realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding

to the amount realised by him. Where a liquidator distributes any amount, which is not realised

by him, he shall be entitled to a fee corresponding to the amount distributed by him.”.

  1. 3. In the principal regulations, in regulation 37, in sub-regulation (6), the word “of” shall be

omitted.

  1. 4. In the principal regulations, in regulation 47, in the Table, –

(a) in serial number 4, in column 2, for “Section 38 (1) and (5), Reg. 17, 18 and 21A”, the

following shall be substituted, namely: –

“Section 38 (1), Reg. 17, 18, 19, 20 and 21A”;

(b) in serial number 18, in column 4, for the word “disclosure”, the word “disclaimer” shall be

substituted.

Dr. M. S. Sahoo

Chairperson

[ADVT ………………………]

Note: The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

were published vide notification No. IBBI/2016-17/GN/REG005 dated 15th December, 2016 in

the Gazette of India, Extraordinary, Part III, Section 4, vide No. 460 on 15th December, 2016

and were last amended by the Insolvency and Bankruptcy Board of India (Liquidation Process)

(Second Amendment) Regulations, 2020 vide notification No. IBBI/2020-21/GN/REG060,

dated the 20th April, 2020 in the Gazette of India, Extraordinary, Part III, Section 4, No. 157 on

24th April, 2020.

 

Companies Act 2013, MCA 21, MCA Rule, Meeting

Extended Upto 30-09-2020 Companies (Meetings of board and its powers) 2nd Amdt Rules 2020 clarification dt 24-06-2020

 PROVISION BEFORE AMENDMENT:

4 Matters not to be dealt with in a Meeting through Video Conferencing or Other Audio-Visual Means

1(1) [The] following matters shall not be dealt with in any meeting held through video conferencing or other audiovisual means.-

(i) The approval of the annual financial statements;

(ii) The approval of the Board’s report;

(iii) The approval of the prospectus;

(iv) The Audit Committee Meetings for 2[consideration of financial statement including consolidated financial statement if any, to be approved by the Board under sub-section (1) of section 134 of the Act]; and

(v) The approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

PROVISION after 1st AMENDMENT:

4 Matters to be Dealt With in a Meeting Through Video Conferencing or Other Audio-Visual Means Upto 30 June 2020.

1(1) [The] following matters shall not be dealt with in any meeting held through video conferencing or other audiovisual means.-

(i) The approval of the annual financial statements;

(ii) The approval of the Board’s report;

(iii) The approval of the prospectus;

(iv) The Audit Committee Meetings for 2[consideration of financial statement including consolidated financial statement if any, to be approved by the Board under sub-section (1) of section 134 of the Act]; and

(v) The approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

PROVISION after 2nd AMENDMENT (24/06/2020):

4 Matters to be Dealt With in a Meeting Through Video Conferencing or Other Audio-Visual Means Upto 30 September 2020.

1(1) [The] following matters shall not be dealt with in any meeting held through video conferencing or other audiovisual means.-

(i) The approval of the annual financial statements;

(ii) The approval of the Board’s report;

(iii) The approval of the prospectus;

(iv) The Audit Committee Meetings for 2[consideration of financial statement including consolidated financial statement if any, to be approved by the Board under sub-section (1) of section 134 of the Act]; and

(v) the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

Companies Act 2013, Corporate Law, Independent Director

24-06-2020 companies (Appointment and Qualifcation of Directors) 3rd Amendment Rules 2020 clarification

Actually provision For appointed as an independent director.

  1. Compliances required by a person eligible and willing to be appointed as an independent director.

(1) Every individual –

(a) who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of 5[seven months] from such commencement; or

(b) Who intends to get appointed as an independent director in a company after such commencement, shall before such appointment,

Apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company:

Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.

*Commencement date was: 01 December 2019.

 

Provision For appointed as an independent director After Amendment date 24/06/2020.

  1. Compliances required by a person eligible and willing to be appointed as an independent director.

(1) Every individual –

(a) who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of 5[Ten months] from such commencement; or

(b) Who intends to get appointed as an independent director in a company after such commencement, shall before such appointment,

Apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company:

Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.

*Commencement date was: 01 December 2019.

The conclusion Time period of 7 months ended on June 2020 so time period was extended to 10 months ends on September 2020 for apply online for the inclusion of name in data bank who already appointed as an independent director as on 01 Dec 2019 as an independent director.

Companies Act 2013, MCA 21

MCA Name Reservation and RSUB and Change of name Time extension Circular

Subject Extension of RSUB validity for companies Time extension as per Circular Circular Apply Conditions Example
Name reservation for companies Names reserved for 20 days for new company incorporation. SPICe+ Part B needs to be filed within 20 days of name reservation Names expiring any day between 15th March
2020 to 30th June would be extended by 20 days
beyond 30th June 2020.		 *The name must be Expire between 15th march 2020 to 30th june 2020 1.ABC pvt ltd The name reservation expire on 30th june 2020. but due to circular now name expire on 20 July 2020.
2.ABC pvt ltd The name reservation expire on 20th March 2020. but due to circular now name expire on 20 July 2020.
3.ABC pvt ltd The name reservation expire on 01 july 2020 then these circular not applies and no time extension allowed.
Change of Name of companies Names reserved for 60 days for change of name of company. INC-24 needs to be filed within 60 days of name reservation. Names expiring any day between 15th March
2020 to 30th June would be extended by 60
days beyond 30th June 2020.		 *The name must be Expire between 15th march 2020 to 30th june 2020 1.ABC pvt ltd The name reservation expire on 30th june 2020. but due to circular now name expire on 29 August 2020.
2.ABC pvt ltd The name reservation expire on 20th March 2020. but due to circular now name expire on 29 August 2020.
3.ABC pvt ltd The name reservation expire on 01 july 2020 then these circular not applies and no time extension allowed.
Name Resubmition(RSUB) Extension of RSUB validity for
companies/LLPs		 SRNs where last date of Resubmission (RSUB) falls between 15th March 2020 to 30th June 2020, additional 15 days beyond 30th June 2020 would be allowed. However, for SRNs already marked under NTBR, extension would be provided on case to case basis. *The name Resubmission must expire between 15th march 2020 to 30th june 2020 1.ABC pvt ltd The name resubmission expire on 30th june 2020. but due to circular now name expire on 15 July 2020.
2.ABC pvt ltd The name resubmission expire on 20th March 2020. but due to circular now name expire on 15 July 2020.
3.ABC pvt ltd The name resubmission expire on 01 july 2020 then these circular not applies and no time extension allowed.
Namee reservation for LLPs Names reserved for 90 days for new LLP incorporation/change of name. FiLLiP/Form 5 needs to be filed within 90 days of name reservation. Names expiring any day between 15th March 2020 to 30th June would be extended by 20 days beyond 30th June 2020. *The name Reservation must expire between 15th march 2020 to 30th june 2020 1.ABC LLP The name Reservation expire on 30th june 2020. but due to circular now name expire on 20 July 2020.
2.ABC LLP The name reservation expire on 20th March 2020. but due to circular now name expire on 20 July 2020.
3.ABC LLP The name reservation expire on 01 july 2020 then these circular not applies and no time extension allowed.

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