REGULATORY UPDATE: MINISTRY OF CORPORATE AFFAIRS-INSOLVENCY PROFESSIONAL NOT TO OUTSOURCE HIS RESPONSIBILITIES.

The Insolvency and Bankruptcy Board of India (IBBI) vide its circular dated 3 January 2018 has directed that the Insolvency Professional shall not outsource any of his duties and responsibilities to a third party and shall not require any certificate from another person certifying eligibility of a resolution applicant as this adds to the cost of the resolution applicant and delays submission of the resolution plans.

The IBBI has further clarified that in order to seek assistance in carrying out his responsibilities under the Code, it allows an Insolvency Professional to appoint accountants, legal or other professionals, as may be necessary.

The IBBI circular also clarifies that an Insolvency Professional is required to manage the operations of the corporate debtor as a going concern.

Source:http://ibbi.gov.in/webadmin/pdf/legalframwork/2018/Jan/CIRP%203_2018-01-03%2018:42:38.pdf

 

Advertisements