IBBI Orders Resolution Professionals To Share Report With Debtor, Creditor

IBBI Orders Resolution Professionals To Share Report With Debtor, Creditor

The insolvency regulator says the move will promote transparency and informed decision-making

The Insolvency & Bankruptcy Board of India (IBBI) ordered the resolution professionals (RPs) to share their report, recommending for approval or rejection of the resolution application to both debtor and creditor.

The RP in an insolvency resolution process of a debtor examines the application filed under section 94 or 95 of the Insolvency and Bankruptcy Code (IBC) and submits a report to the adjudicating authority, recommending for approval or rejection of the application, the IBBI said in circular.

The sub-section (10) of section 99 of the IBC mandates the RP to share a copy of this report to the debtor or the creditor, as the case may be, the insolvency regulator said.

However, it has been observed that in certain cases, the RPs have not shared a copy of the report with both debtor and creditor, leading to a lack of equal information access among them, it added.

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“Therefore, it is hereby advised that the RP shall provide a copy of the report to both debtor and creditor in all cases,” Sushanta Kumar Das, deputy general manager at the IBBI, said.

The regulator said this will ensure that the debtor and the creditor are well-informed about the evaluation and recommendations made by the RP, thereby promoting transparency and informed decision-making.

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