The Tax Publishers

Authorised Representative for Classes of Creditors

S. Swaminathan

The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018 introduces several provisions. The learned author laid emphasis on some provisions in the light of such amended regulation as it widen the scope of claim by creditors in a class, further, enable to constitute the panel of insolvency professionals to act as the authorised representative of creditors in each class, if the corporate debtor has class of creditors having atleast ten creditors in the class.

1. Prologue

The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 have been amended from time to time to develop a transparent and effective system for the insolvency and liquidation resolution process. IBBI amends such regulation as the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018 [hereinafter, 'CIRP Regulation'], which provides various new provisions and amends the existing provisions.

The interim resolution professional is required to constitute the Committee of Creditors after collation of all claims received against the corporate debtor and determines the financial position of the corporate debtor. The CIRP Regulation expands the scope of claim by creditors in a class. For this purpose, it specifies the meaning of class of creditors and provisions thereof. Moreover, CIRP Regulation bought the new concept as authorised representative for classes of creditors. In this context, it facilitates the constitution of panel of insolvency professionals to act as the authorised representative of creditors in each class. Such class should have atleast ten creditors in the class as per the definition of 'class of creditors'. This article explains these new provisions in detail.

2. Submission of proof of claims

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