Creditors may get power to remove liquidator under IBC

 

The insolvency and Bankruptcy Board of India(IBBI) proposed a slew of changes to the liquidation regulations to iron out the inconsistencies and make the liquidator more accountable under the Insolvency and Bankruptcy Code(IBC)

Under the can ages, a committee of creditors(CoC), may act as a stakeholders' consultation committee(SCC) which is typically up within 60 days from the date of commencement of liquidation to monitor the process from the beginning. Creditors can now replace the liquidator with a majority vote. Liquidator to give reasons if decisions are taken contrary to the stakeholders' panel view. The amendment also provides for filing a copy of the GST returns by operational creditors with e-way bills as documentary evidence of the debt and default. The same is to be submitted to the Insolvency Resolution Professional or the interim resolution professional for easier verification of claims. The amendment also includes a definition of significant differences in valuations during the corporate insolvency resolution process( CRIP) and enables the committee of creditors to request the resolution professional regarding the appointment of a third value.