1. Personal Guarantors under IBC ambit
The Ministry of Corporate Affairs ("MCA") has, vide a notification dated November 15, 2019, appointed December 1, 2019 as the date from which the various provisions relating to insolvency resolution process and bankruptcy process of personal guarantors to corporate debtors under the Insolvency and Bankruptcy Code, 2016, will come into effect.
In this regard, MCA has also issued Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 and Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019 and governing the insolvency resolution process and bankruptcy process of personal guarantors to corporate debtors and appointed 1st day of December, 2019 as the date from which the said Rules will come into force.
In this regard, the Insolvency and Bankruptcy Board of India has also released the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 and Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 on November 20, 2019, which will come into effect from December 01, 2019.
2. NBFCs under IBC ambit
Ministry of Corporate Affairs ("MCA") vide its notification dated November 15, 2019 notified Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, setting out the detailed procedure for insolvency and liquidation proceedings of a specified category of financial service providers, thereby providing the financial service providers facing a financial crisis, an opportunity to revive. In this regard, MCA issued a notification dated November 18, 2019 providing that the insolvency resolution and liquidation proceedings of Non-banking finance companies (which include housing finance companies) with asset size of Rs.500 crore or more, as per last audited balance sheet, will be conducted in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 read with the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
Originally published 1 June 2019
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