Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (MCA updates 15th June 2022)

The Insolvency and Bankruptcy Board of India (IBBI/Board) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 (CIRP Regulations) on 14th June, 2022.

The amendment provides the operational creditors to furnish extracts of Form GSTR-1, Form GSTR-3B and e-way bills, wherever applicable along with the application filed under section 9 of the Insolvency and bankruptcy Code, 2016. These additional set of documents, can  be used as evidence of transaction with the corporate debtor, debt and default easing the process of admission. These documents will also to be submitted as part of the claims submitted to the resolution professional to help collation of claims. Further, creditors filing applications under section 7 or 9 of the Code are required to furnish details of their PAN and Email ID to ensure smooth correspondence.

In order to improve information availability, the amendment places a duty on corporate debtor, its promoters or any other person associated with the management of the corporate debtor to provide the information in such format and time as sought by the resolution professional.

The amendment places a duty on the creditors to share information regarding the assets and liabilities of the corporate debtor, the financial statements and other relevant financial information from their records and available reports to help the resolution professional in preparation of the information memorandum and relevant extracts from the transaction or forensic audit reports to aid the resolution professional in preparation of the avoidance application.

The Amendment also addresses the issue of treatment of avoidance applications filed with the Adjudicating Authority after closure of the corporate insolvency resolution process (CIRP). It provides that the resolution plan shall provide for manner in which such applications will be pursued after the approval of the resolution plan and the manner in which the proceeds, if any, from such proceedings shall be distributed.

The amendment includes a definition of significant difference in valuations during CIRP and enables the committee of creditors to make a request to the resolution professional regarding the appointment of a third valuer.

The amended regulations are effective from today. These are available at www.ibbi.gov.in.

MCA Press release dated 15th June 2022

IBBI amends Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 (MCA updates 15 June 2022)

With a view to put in place, a streamlined and swift complaint handling procedure, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022 to amend the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.

The Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 provide mechanism for redressal of complaints and grievances filed against insolvency professionals, insolvency professional agencies and information utilities. Further the Code read with Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 provide mechanism for carrying out inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and passing orders by Disciplinary Committee.

The mechanism of complaint/ grievance redressal and subsequent enforcement action has been amended to have expeditious redressal and also to avoid placing undue burden on the service providers. To curtail such delays and to ensure expeditious and result oriented enforcement mechanism, the Amendment Regulations provides for following:

  • Revisions in various timelines related to enforcement process provided in the (Grievance and Complaint Handling Procedure) Regulations, 2017 and (Inspection and Investigation) Regulations, 2017 for addressing the issue of delay in present mechanism.
  • Effective participation of IPAs in regulating the IPs through examination of grievances received against IPs.
  • Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of Disciplinary Committee (DC) order.

The Amendment Regulations are effective from 14th June, 2022. These are available at www.ibbi.gov.in.

MCA Press Release dated 15th June 2022

Evolution of Revolution – Sustainability, Environment-Social-Governance (ESG), Corporate Social Responsibility (CSR) in a new paradigm shift (MCA updates 12 June 2022)

Thousands of industry leaders have witnessed a revolutionary evolution of ESG and CSR at the campus of Indian Institute of Corporate Affairs (IICA), IMT Maneasr. About 30 top companies exhibited their practices in the sphere of sustainability, Environment-Social-Governance (ESG), and Corporate Social Responsibility (CSR).

School of Business Environment (SoBE) in IICA has set the right directions for companies to be more responsible in their approach towards the society, economy and environment. IICA is a think tank under the Ministry of Corporate Affairs working towards strengthening the ESG-CSR ecosystem in the country among its other initiatives.
 

Shri Rao Inderjit Singh, Union Minister of State for Corporate Affairs was the Chief Guest in the event and participated virtually. He said that Ministry’s contribution in promoting Good Corporate Governance has further facilitated ease of doing business in the country. Government lays strong emphasis on the reinforcement of ‘minimal government & maximum governance’, public trust and ease of doing business. The Government has repealed over 25000 compliances and nearly 1500 union laws. The Amrit Kaal will focus on the next phase of Ease of Doing Business (EoDB 2.0) and Ease of Living and the government following the goal of ‘trust-based governance’ to improve the productive efficiency of capital and human resources. He emphasised that Sustainable Development is now recognized as Fundamental Right of the people. The Supreme Court of India has held that sustainable development is to be treated as an integral part of life under article 21 of the Constitution of India. Hence, complying with the principle of sustainable development is a constitutional mandate. He said that as an Individual everyone has a  great responsibility on their Shoulders. Until individual mindset don’t change Massive revolution are difficult in achieving the SDG Goals.

Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs said that Ministry of Corporate Affairs has made remarkable contributions by introducing Corporate Social Responsibility (CSR) mandate under the Companies Act, and the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business and also an updated version of National Guidelines on Responsible Business Conduct (NGRBC). The Securities and Exchange Board of India (SEBI) has mandated Business Responsibility and Sustainability (BRSR) reporting on top 1000 listed companies by market capitalization. The foundation of BRSR is inspired by the Ministry of Corporate Affairs’ Report on Business Responsibility Reporting (BRR) and National Guidelines on Responsible Business Conduct. 

Secretary, Corporate Affairs released a book titled “Benchmarking ESG & CSR” a compilation of the case studies on identified practices on sustainable development projects by companies through their ESG and CSR initiatives. The book was edited by Dr. Garima Dadhich and Dr. Ravi Raj Atrey. An essay competition was also organized by IICA, three winners received awards for their best essays by the Secretary, Corporate Affairs. In a Panel discussion on Corporate Governance, Shri Inderdeep Singh Dhariwal, Joint Secretary MCA Chairing the Technical Session 1 spoke about the youth’s contribution towards the revolutionary change of the Corporate Governance. Sh Manoj Pandey Joint Secretary emphasised on Women’ Financial Literacy during the 2nd Technical Session, while Chairing.

Shri Praveen Kumar, Director General and CEO, IICA in his welcome address said that , It is well-known that economy is the backbone of any nation and one of the key drivers of this backbone is the corporate sector. They have played a significant role in the remarkable Indian Growth story and they would have to continue their exceptional contribution to ensure that the economy keeps attaining greater heights. The Ministry of Corporate Affairs (MCA) provides the enabling framework for corporates in order to make them effective contributors to national development. The IICA is the only institution that has a mandate to strengthen corporate affairs in the country.  30 Exhibitors working on ESG-SDG-CSR exhibited their best practices being carried out by them. The Exhibition was inaugurated by Secretary MCA Sh Rajesh Verma. Around 30 Companies participated and exhibited their Best Practices.

Ms Nandita Mishra and other panellists also expressed their views during the technical Sessions.

During the Inaugural programme  winners of the Essay competition were announced .  Topic of the Essay Competition was “Corporate Governance : Evolving Vision For  New India” . The contest was open for the students and young professionals upto the age of 30 years in Bilingual language i.e. Hindi or in English. Tremendous response for this competition was received in terms of entries. 3rd Prize Mr Sartaj Singh 2nd Prize  Ms Nandini Agarwal and the !st prize to Mr Samyak Sanghvi from Ahmedabad were felicitated with the cash prize and a certificate.

In the Technical session on Impactful CSR towards strengthening ESG, Ms Anita Shah Akella, Joint Secretary, Ministry of Corporate Affairs Chairing the technical session stated that Corporate have been playing a key role by making contributions for the betterment of society through their CSR initiatives. Presently they are witnessing a transitional approach from CSR to ESG in their functioning. A women centric approach, a gender sensitive approach, is required in any initiative, particularly when we talk about the CSR and ESG aspects. Particularly the governance aspects of ESG should focus on Women’s Rights in an organizational setting. Other dignified speakers in the panel were Ms Naina Lal Kidwai, Ms Namita Vikas, Dr Inderjeet Singh, Mr. Shrabjeet Sahota, Dr.Suranjali Tondon, Ms Neetu Ahuja and Dr. Garima Dadhich. The panel concluded that to achieve a paradigm shift in ESG and CSR may be destined through such initiatives of the IICA which motivate those doing good work and inspires others to follow. IICA’s upcoming Certified ESG Professional Course will also be a landmark in this sector in country. I

In another technical session emphases was made on Financial Inclusion and Literacy of Women. Dr. Naveen Sirohi, emphasised on importance of women empowerment and financial literacy. The speakers were Shri Manoj Pandey, Joint Secretary, MCA, Sushmita Phukon, Seema Singh, and Namita Vikas. 

Mr Arjan De Wagt Deputy Representative Unicef India, Smt Nandita Mishra – Economic Adviser MCA, Mr Agrim Kaushal Adviser DPE and Shri Vishram Kumar Meena, Additional Dy Commissioner Gurugram also graced the programme.

The event ‘Promoting Impactful CSR and Good Governance’ was organised in collaboration with NITI Aayog, Department of Public Enterprises and Unicef India in light of requirements under Amrit Kaal. The programme was facilitated by Dr Garima Dadhich, Head of School of Business Environment in support with Dr Lata Suresh Head KRC, Dr Ravi Raj Atrey and Ms Sudha Rajagopalan under the able guidance of Shri Praveen Kumar DG & CEO, IICA.

Our dedicated contributions today will witness a great revolutionary change tomorrow and will have far reaching impacts day after, said Dr. Garima Dadhich and Dr. Ravi Raj Atrey Faculty of School of Business Environment in IICA during an interview describing about the book which was released during  the Inaugural session.

Dr Lata Suresh was the master of ceremony during the event who is also a media coordinator.

Press Release dated 12 June 2022

Delhi ROC Penalty order for non appointment of whole time Company Secretary in the matter of Pitchers Internet Private Limited dated 25 May 2022

Delhi ROC Penalty order for non appointment of whole time Company Secretary in the matter of Pitchers Internet Private Limited dated 25 May 2022

Total Penalty imposed :

On Company: Rs.5 Lakhs
On officer in defaults: 13.23 Lakhs