Corporate Updates – 19-06-2017


Insolvency and Bankruptcy Board of India notifies Fast Track Insolvency Resolution Process for Corporate Persons Regulations. The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 which shall come into force on June 14, 2017. These regulations provide the process from initiation of insolvency resolution of eligible corporate debtors till its conclusion with approval of the resolution plan by the Adjudicating Authority. The process in these cases shall be completed within a period of 90 days, as against 180 days in other cases. However, the Adjudicating Authority may, if satisfied, extend the period of 90 days by a further period up to 45 days for completion of the process. The Ministry of Corporate Affairs has notified the relevant sections 55 to 58 of the Insolvency and Bankruptcy code,2016 pertaining to the Fast Track Process and also notified that fast track process shall apply to the following categories of corporate debtors, a small company, a Startup or an unlisted company with total assets, not exceeding Rs.1 crore


MCA vide its Notice dated June 17, 2017 has confirmed that Form DIR-5 will be deployed as an E-Form for filing purposes with effect from June 21, 2017. Stakeholders who wish to surrender their DINs are required to file this Form DIR-5 instead of it being filed as an attachment to Form RD-1. Currently Form DIR-5 is required to be filed under Rule 11 of the Rules which deals with Cancellation, Surrender or Deactivation of DIN. Form DIR-5 will be a separate E-form instead of an attachment to existing Form RD-1 w.e.f. June 21, 2017.

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