Draft regulations have been prepared for voluntary liquidation that can be initiated by a corporate person who has not committed any default.
The norms have been prepared under the Insolvency and Bankruptcy Code.
Under the Code, the Insolvency and Bankruptcy Board of India (IBBI) is already in place.
“A corporate person who has not committed any default may initiate voluntary liquidation subject to certain conditions,” an official release said today.
The draft regulations would be open for comments from the public till March 8.
So far, IBBI has notified the Insolvency Resolution Process for Corporate Persons and Liquidation Process regulations.
The Code seeks to consolidate and amend laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
It has 7 Chapters, namely:
CHAPTER I – PRELIMINARY
CHAPTER II – COMMENCEMENT OF VOLUNTARY LIQUIDATION
CHAPTER III – APPOINTMENT AND REMUNERATION OF LIQUIDATOR
CHAPTER IV – POWERS AND FUNCTIONS OF LIQUIDATOR
CHAPTER V – CLAIMS
CHAPTER VI – REALISATION OF ASSETS
CHAPTER VII – PROCEEDS OF LIQUIDATION AND DISTRIBUTION OF PROCEEDS
And 2 schedules, as following:
FORM A PUBLIC ANNOUNCEMENT
PROOF OF CLAIM BY OPERATIONAL CREDITORS EXCEPT WORKMEN AND EMPLOYEES
PROOF OF CLAIM BY FINANCIAL CREDITORS
PROOF OF CLAIM BY A WORKMAN OR EMPLOYEE
PROOF OF CLAIM BY AUTHORISED REPRESENTATIVE OF WORKMEN OR EMPLOYEES
PROOF OF CLAIM BY ANY OTHER STAKEHOLDER
(Under Regulation 10 of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation) Regulations, 2017)
The formats contained in this Schedule are indicative in nature, and the liquidator may make such modifications to them as he deems fit in the facts and circumstances of the liquidation.