In a first for the country’s bankruptcy resolution regime, the insolvency regulator has prepared a “common panel” of 400 insolvency professionals (IPs) from those registered with it. The Insolvency and Bankruptcy Board of India (IBBI) will share the list with the adjudicating authority to choose from to oversee cases of resolution or liquidation from July 1, according to an official.
Separately, the IBBI has also listed 17 insolvency professional entities (IPEs) that have been registered as IPs to oversee resolution, according to the list firmed up by the regulator on Tuesday.
The move, the official said, will avoid administrative delays in the appointment of IPs and help expedite insolvency resolution.
Earlier this month, the IBBI had asked IPs to submit their expression of interest by June 25 for being a part of the panel.
Those featured in the list will be eligible for appointment as interim resolution professionals (in corporate insolvency resolution process), resolution professionals (in individual insolvency cases), liquidators and bankruptcy trustees under various sections of the Insolvency and Bankruptcy Code (IBC). They can be appointed between July 1 and December 31, 2023, the IBBI said. The list will be updated periodically.
Prior to this, the regulator was required to recommend the IP’s name only after receiving reference from the National Company Law Tribunal (NCLT) in a corporate insolvency resolution process (CIRP).
Delhi accounted for the highest number of the selected professionals (85), followed by Maharashtra (64), West Bengal (36), Gujarat (35) and Tamil Nadu (35), thanks to a strong insolvency eco-system in these states.
The names of the IPs are mentioned in the list along with the areas in which they have handled cases. The list will also be submitted with the Debt Recovery Tribunal for handling individual insolvency cases as well.
These guidelines will be called the Insolvency Professionals to Act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2023.
