The Insolvency Resolution Process for Corporate Persons Regulations, 2016 (“CIRP Regulations”) have been amended to insert new Rule 12A mandating creditors to update their claims as and when they are satisfied partly or fully from any source or in any manner after the insolvency commencement date.

Further, a new sub-regulation 1A in Regulation 40B prescribes that where any of the below-mentioned activities is not completed by the specified dates, the IRP or RP shall file Form CIRP 7 within three days of the said date and continue to file Form CIRP 7 every 30 days until the said activity remains incomplete :

• Public announcement is not made by T+3rd day;
• Appointment of RP is not made by T+30th day;
• Information memorandum is not issued within 51 days from the date of public announcement;
• RFRP is not issued within 51 days from the date of issue of information memorandum;
• CIRP is not completed by T+180th day.

Form C for submission of claim by financial creditors is also substituted.

To refer to the IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2021, dated 15 March 2021, click here.