1. CIRCULARS/NOTIFICATIONS ISSUED BY IBBI
1. Filing of the list of stakeholders under clause (d) of sub-regulation (5) of regulation 31 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016
The Insolvency and Bankruptcy Board of India ("IBBI") had released a prescribed format for submission of a list of stakeholders by the Liquidator pursuant to Regulation 31(5)(d) of the IBBI (Liquidation Process) Regulations, 2016.
Under the prescribed format, a particular required to be provided for "Identification No." for seeking identification details of stakeholders. However, in various instances, in the said column, the details of the Aadhar/PAN of the stakeholders were being filled.
This information is highly sensitive and prone to misuse, the IBBI, vide it's Circular dated 24.11.2021, has removed the said column of "Identification No." and provided for a new format.
2. Filing of the list of creditors under clause (ca) of sub-regulation (2) of regulation 13 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
3. The IBBI had released a prescribed format for submission of list of creditors by the Liquidator pursuant to Regulation 13(2)(ca) of the IBBI ((Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Under the prescribed format, a particular required to be provided for "Identification No." for seeking identification details of creditors. However, in various instances, in the said column, the details of the Aadhar/PAN of the creditors were being filled.
This information is highly sensitive and prone to misuse, the IBBI, vide it's Circular dated 24.11.2021, has removed the said column of "Identification No." and provided for a new format.
4. Clarification regarding the requirement of seeking No Objection Certificate or No Dues Certificate from the Income Tax Department during Voluntary Liquidation Process under the Insolvency and Bankruptcy Code, 2016 (Code)
Regulation 14 of the IBBI (Voluntary Liquidation Process) Regulations, 2017 (the Regulations) provides for all the financial creditors, operational creditors including government, and other stakeholders to submit their claims within the specified period, failing which their claims may consequently get extinguished.
Despite such opportunity for filing of claims, the liquidators seek 'No Objection Certificate' (NOC) or 'No Dues Certificate' (NDC) from the Income Tax Department without any provision for the same under the Insolvency and Bankruptcy Code, 2016 ("I&B Code").
Since the I&B Code has an overriding effect on the provisions of section 178 of the Income-tax Act, 1961, hence the process of applying and obtaining such NOC/NDC from the Income Tax Department, it is has been clarified by the IBBI that as per the provisions of the I&B Code read with
Section 178 of the Income-tax Act, 1961, an Insolvency Professional handling voluntary liquidation process is not required to seek any NOC/NDC from the Income Tax Department as part of compliance in the said process. This has been done to ensure the objective of time-bound completion of the process under the I&B Code survives.
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