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The Insolvency and Bankruptcy Code, 2016 (IBC) stipulates a period that is 180 days which can be extended to a maximum of 330 days. In this period the Corporate Insolvency Resolution Process (CIRP) should be completed. Financial Creditor, Operational Creditor of the Corporate Debtor (CD), or the Corporate Debtor itself, can initiate the CIRP. When the CIRP is initiated by the Adjudicating Authority an Interim Resolution Professional (IRP) is appointed, who acts on behalf of the Directors of the Corporate Debtor. Role of CoC When the claims of various creditors are verified by the IRP, a Committee of Creditors (CoC) is constituted. This CoC Comprises of financial creditors and is the decision-making body for the Corporate Debtor's administration. The Code and the regulations made confer various powers on the CoC, including appointing the IRP as the Resolution Professional (RP), supervising their functioning and conduct, and even replacing the RP if the RP's conduct is not satisf...

On 13 th November 2020, Insolvency and Bankruptcy Board of India (“ IBBI ”) issued the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020. One of the major purposes, for which this amendment was brought in was to ease the process of sale of liquidation assets. As we all are aware that realization  of some assets (such as continent claims, disputed receivables, disputed assets, refund from government etc.) have been an uphill task for any liquidator. Since realization  of these assets may take quite some time, they are referred in these regulations as ‘Not Readily Realizable  Asset’ or NRRA, which term has been introduced by inserting Regulation 37A. There is always a sense of urgency in a liquidation process and liquidator tries to ensure that the creditors of corporate debtors are able to realize maximum value of the assets of corporate debtor. However, these NRRAs create a sort of hurdle in this urgent process. Regul...