Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020
By INSOL INDIA EDITORIAL TEAM Posted On : August 30, 2020
On August 5, 2020, the IBBI enacted the IBBI (Liquidation Process) (Third Amendment) Regulations, 2020 (“LP Amendment Regulations”). By virtue of the LP Amendment Regulations, a clarification is inserted after regulation 4(2)(b) of the IBBI (Liquidation Process) Regulations, 2016 (“LP Regulations”). The clarification states that “where a liquidator realizes any amount but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him. Where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him.” This clarification has been provided so as to minimize discrepancies in the amount realised or distributed by the liquidator. The LP Amendment Regulations further state that the word ‘of’ shall be omitted in regulation 37(6) of the LP Regulations and certain terms in the table provided in regulation 47 of the LP Regulations shall be replaced.