The Insolvency and Bankruptcy Board of India (IBBI) issued guidelines for the process for appointing insolvency professionals (IPs) to roles such as interim resolution professionals (IRPs), liquidators, and bankruptcy trustees. Key among the provisions is the establishment of a panel of IPs, slated to be operational from July 1, 2024, through December 31, 2024. This panel,...
The Insolvency and Bankruptcy Board of India (IBBI) issued guidelines for the process for appointing insolvency professionals (IPs) to roles such as interim resolution professionals (IRPs), liquidators, and bankruptcy trustees.
Key among the provisions is the establishment of a panel of IPs, slated to be operational from July 1, 2024, through December 31, 2024. This panel, which will be shared with both the National Company Law Tribunal (NCLT) and the Debt Recovery Tribunal (DRT), will be formed to deal with administrative delays often encountered in the appointment process.
For an IP to qualify for inclusion in the panel, certain eligibility criteria must be met. These include the absence of pending disciplinary proceedings or convictions within the preceding three years, possession of a valid authorization for assignment extending for the duration of the panel's validity, and submission of an expression of interest along with consent to serve in various capacities.
Furthermore, prior experience in handling assignments under the Insolvency and Bankruptcy Code is held to be necessary. Therefore, IPs with a proven track record of successfully managing such assignments are given precedence in the sorting process. In cases where multiple IPs possess similar levels of experience, the guidelines stipulate that their placement in the panel will be determined based on the date of their registration with the IBBI.
The IBBI will compile the panel based on factors such as the volume of completed assignments and registration dates of IPs, with an emphasis on prioritizing those with more extensive experience.
Once included in the panel, IPs are expected to accept appointments without withdrawal unless expressly permitted by the relevant authorities. Failure to comply without sufficient justification may result in removal from the panel for a period of six months.
IPs are prohibited from withdrawing their consent to accept appointments unless expressly permitted by the NCLT, DRT, or the IBBI in accordance with the law. IPs are expected to maintain their registration with the IBBI and hold a valid Authorization for Assignment (AFA) throughout the validity period of the panel.