Common Panel for IPs

Common Panel for IPs.

• The bankruptcy regulator will prepare a “common panel” of insolvency professionals (IPs) from those registered with it and share the list in advance with the adjudicating authority to choose from to oversee various cases of resolution or liquidation from July 1. 
• At present, the Insolvency and Bankruptcy Board of India (IBBI) is required to recommend the IP’s name only after receiving reference from the National Company Law Tribunal (NCLT) in a corporate insolvency resolution process (CIRP). 
• This list will be shared in advance with the adjudicating authority for appointment as IRP (interim resolution professional), Liquidator, RP (resolution professional) and BT (bankruptcy trustee).
• The purpose of this panel is to allow the authority to choose IPs from the list to oversee various cases of resolution or liquidation.

Insolvency Professionals

• They are individuals registered with the Insolvency and Bankruptcy Board of India (IBBI) who specialize in handling insolvency and bankruptcy proceedings.
• They are responsible for managing the affairs of the debtor, conducting investigations, gathering financial information, coordinating with creditors, and implementing the resolution plan or liquidation process by the Insolvency and Bankruptcy Code (IBC).

Practice Questions for Prelims

Consider the following statements:
1. Voluntary Liquidation in India can only happen through Section 59 of IBC.
2. Cross Border Insolvency in India can be resolved through Section 234 and 235 of the IBC.

Which of the above statements is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Ans. b)

Mains Practice Question

 Insolvency and Bankruptcy Code (IBC) has become a major savior for the banking sector. In this light discuss the impact of new Code on loan recovery and also suggest remedial measures for better implementation of the Code.

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