IBBI Mandates RP to Share Sec. 99 Report With Debtor and Creditor in All Cases for Equal Information Access
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- By Chetan Kulasri
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- Last Updated on 15 February, 2024
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Circular No. No. IBBI/II/66/2024, Dated 12.02.2024
The resolution professional (RP) in an insolvency resolution process of a debtor under the Insolvency and Bankruptcy Code, 2016 (Code) examines the application filed under section 94 or 95 of the Code and submits a report to the Adjudicating Authority under section 99 of the Code, recommending for approval or rejection of the application.
Section 99 mandates the RP to share a copy of this report with the debtor or the creditor. The IBBI has observed that in certain cases, the RPs have not shared a copy of the report with both debtor and creditor, leading to a lack of equal information access among them.
Therefore, the IBBI has now advised that the RP shall provide a copy of the report to both the debtor and the creditor in all cases. This will ensure that the debtor and the creditor are well-informed about the evaluation and recommendations made by the RP, thereby promoting transparency and informed decision-making.
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