IBBI amends the Insolvency and Bankruptcy  Board of India (Liquidation Process) Regulations, 2016  

#GS3 #Economy 

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy  Board of India (Liquidation Process) (Third Amendment) Regulations, 2020. 

  • The Regulations require the committee of creditors to fix the fee payable to the liquidator.   
  • Where the fee has not been fixed by the committee of creditors, the Regulations provide for a  fee as a percentage of the amount realised and of the amount distributed by the liquidator.  
  • There  have been instances where a liquidator realises the amount while another liquidator distributes  the same to stakeholders.  
  • The amendment made to the Regulations today clarifies that where a  liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee  corresponding to the amount realised by him. Likewise, 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. 
  • The amended regulations are effective from 07/08/2020. 
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