IBBI Issues Guidelines For Panel Of Eligible Insolvency Professionals

The Insolvency and Bankruptcy Board of India (IBBI) issued the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals, and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2024 on December 2, 2024. These guidelines outline the procedure for preparing a panel of Insolvency Professionals (IPs) to be appointed by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT) for various roles under the Insolvency and Bankruptcy Code, 2016. The guidelines aim to streamline the appointment process and avoid administrative delays by preparing the panel in advance.

To be eligible for inclusion in the panel, an IP must meet several criteria, including having no pending disciplinary proceedings, not being convicted in the last three years, and holding a valid Authorization for Assignment (AFA). The IBBI invites expressions of interest from IPs, who must submit their details and consent to act in various roles by a specified date. The panel is prepared based on the volume of completed assignments and the date of registration with the Board, ensuring experienced professionals are prioritized.

The guidelines also specify conditions for IPs, such as not withdrawing consent or refusing appointments without sufficient justification. The panel is valid for six months and is organized zone-wise based on the registered office of the IPs. The Adjudicating Authority has the discretion to appoint IPs from the panel or refer to the IBBI for recommendations. The guidelines replace the previous ones issued in June 2024, ensuring a more efficient and transparent process for appointing insolvency professionals.