IBBI Notifies Updated Form H Under CIRP Regulations

On April 3, the Insolvency and Bankruptcy Board of India (IBBI) notified the updated Form H (compliance certificate) under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations).

The compliance certificate in Form H of Schedule I is required to be furnished while submitting the resolution plan approved by the Committee to the Adjudicating Authority, as prescribed under Regulation 39(4).

The key changes made to the form, through amendments to the CIRP Regulations, are as follows:

• CIRP details: These details have been modified to include the date of submission of the resolution plan to the resolution professional. It also requires the inclusion of the date of each order extending/excluding the period of CIRP on a request filed by the resolution professional.
• Application for resolution plan approval: The resolution professional must now specify whether the application for approval of the resolution plan was filed within 180 days of CIRP initiation. If there was a delay, the number of days beyond this timeline and the reasons for the delay must be mentioned.
• Successful resolution applicants: The updated Form H now includes a requirement for details and documents related to the successful resolution applicant (SRA), including the due diligence certificate of the resolution professional under Section 29A of the Insolvency and Bankruptcy Code, 2016, for the SRA.
• Details of the resolution plan and its implementation: These details encompass the voting percentage of the Committee in favour of the resolution plan, term and implementation of the plan in brief, etc.
• Realisable amount: The compliance certificate must now include information on the total realisation amount under the plan, fair value, liquidation value, percentage of realisation amount to fair value, percentage of realisation amount to liquidation value, etc. along with details of realisable amount.
• Carry forward losses: Details about carry forward losses under Section 79(2)(c) of the Income-tax Act, 1961, must also be specified.
• PUFE transactions: The form now requires an explanation of how preferential, undervalued, fraudulent, and extortionate (PUFE) transactions are dealt with in the resolution plan.
• PUFE applications against suspended directors: If the resolution plan is submitted by a suspended director/promoter of the corporate debtor, the compliance certificate must provide details of any PUFE applications against the suspended directors.
• Omission of deviations or non-compliance: The new version of Form H no longer requires the explicit mention of any deviations or non-compliance with the provisions of the IBC, regulations, or circulars. This marks a significant change from the previous format, which required such disclosures.

Apart from the other changes, the updated form also addresses the steps to be taken by relevant parties following the approval of the resolution plan by the Adjudicating Authority, the regulatory fee payable (0.25%) to the Board under Regulation 31A, etc.

In a separate notification, the Board amended the IBBI (Insolvency Professionals) Regulations, 2016. As per this amendment, individuals will now be eligible for registration if they have passed the Limited Insolvency Examination within 24 months (as opposed to the previous 12 months) before the date of application for enrolment with an insolvency professional agency.