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The Tax Publishers Role of IPEs : Insolvency Professional Entities not to act as Insolvency Professional under the Code Pragya Lalwani The Insolvency and Bankruptcy Code, 2016 offers a market determined, time bound mechanism for orderly resolution of insolvency and orderly exit, wherever required. Insolvency professionals(IPs) have a critical role to play under the Code. They can engage other professionals and use organisational resources of recognised insolvency professional entities(IPEs) though IPEs cannot act as IPs. The learned author describes the role of IPEs, their recognition as such subject to certain conditions and other matters related thereto. 1. Background The Insolvency and Bankruptcy Code, 2016 (Code) is a biggest economic reform after the GST Law. The Code has been enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders. This framework comprises of the Insolvency and Bankruptcy Board of India, Information Professionals (IPs), Insolvency Professional Agencies (IPAs), Information Utilities (IUs), Insolvency Professional Entities (IPEs), NCLT, NCLAT, DRT and DRAT for implementation of the Code. Insolvency Professional is a person enrolled under section 206 with an insolvency professional agency as its member and registered with the Insolvency and Bankruptcy Board of India(Board) as an Insolvency Professional under section 207 of the Code. He conducts the entire insolvency resolution process under the Code and act as a liquidator or a bankruptcy trustee, as the case may be. In other words, he plays a pivotal role in the process and is the link between the Adjudicating Authority and debtor, creditors and the resolution applicants. IPs have been enabled to engage other professionals as required and to use organisational resources of an IPEs of which they are partners or directors or whole time director, as the case may be, for overhauling the transactions. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Role of IPEs : Insolvency Professional Entities not to act as Insolvency Professional under the Code

Pragya Lalwani

The Insolvency and Bankruptcy Code, 2016 offers a market determined, time bound mechanism for orderly resolution of insolvency and orderly exit, wherever required. Insolvency professionals(IPs) have a critical role to play under the Code. They can engage other professionals and use organisational resources of recognised insolvency professional entities(IPEs) though IPEs cannot act as IPs. The learned author describes the role of IPEs, their recognition as such subject to certain conditions and other matters related thereto.

1. Background

The Insolvency and Bankruptcy Code, 2016 (Code) is a biggest economic reform after the GST Law. The Code has been enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders. This framework comprises of the Insolvency and Bankruptcy Board of India, Information Professionals (IPs), Insolvency Professional Agencies (IPAs), Information Utilities (IUs), Insolvency Professional Entities (IPEs), NCLT, NCLAT, DRT and DRAT for implementation of the Code.

Insolvency Professional is a person enrolled under section 206 with an insolvency professional agency as its member and registered with the Insolvency and Bankruptcy Board of India(Board) as an Insolvency Professional under section 207 of the Code. He conducts the entire insolvency resolution process under the Code and act as a liquidator or a bankruptcy trustee, as the case may be. In other words, he plays a pivotal role in the process and is the link between the Adjudicating Authority and debtor, creditors and the resolution applicants. IPs have been enabled to engage other professionals as required and to use organisational resources of an IPEs of which they are partners or directors or whole time director, as the case may be, for overhauling the transactions.