IBBI amends Insolvency & Bankruptcy Board of India, Liquidation Process, Third Amendment, Regulations, 2020

The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India, Liquidation Process, Third Amendment, Regulations, 2020 yesterday.

 

The Regulations require the committee of creditors to fix the fee payable to the liquidator.  Where the fee has not been fixed by the committee of creditors, the Regulations provide for a fee as a percentage of the amount realised and of the amount distributed by the liquidator. There  have been instances



where a liquidator realises the amount while another liquidator distributes the same to stakeholders. The amendment made to the Regulations yesterday clarifies 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.

 

The amended regulations are effective from yesterday. These are available at www.mca.gov.in  and www.ibbi.gov.in.