IBBI Circular on retention of records relating to Corporate Insolvency Resolution Process
An Insolvency Professional (IP) is under obligation to maintain several records in relation to the assignments conducted by him under the Insolvency and Bankruptcy Code, 2016.
The Insolvency and Bankruptcy Board of India (IBBI) has therefore passed a circular directing the IP to retain records under regulation 39A of the CIRP Regulations:
Accordingly, an IP is under obligation to preserve (a) an electronic copy of all records (physical and electronic) for a minimum period of eight years, and (b) a physical copy of physical records for minimum period of three years, from the date of completion of the CIRP or the conclusion of any proceeding relating to the CIRP, before the Board, the Adjudicating Authority (AA), Appellate Authority or any Court, whichever is later.
An IP shall preserve records relating to that period of a CIRP when he acted as IRP or RP, irrespective of the fact that he did not take up the assignment from its commencement or continue the assignment till its conclusion. For example, an IP served for three months as RP before he was replaced by another IP, who served till conclusion of the CIRP. The former shall preserve records relating to the first three months, and the latter shall preserve records relating to the balance period of the CIRP.
The IP shall also preserve copies of records relating to or forming the basis of:
1. his appointment as IRP or RP, including the terms of appointment;
2. handing over / taking over by him;
3. admission of CD into CIRP;
4. public announcement;
5. the constitution of CoC and CoC meetings;
6. claims, verification of claims, and list of creditors;
7. engagement of professionals, registered valuers, and insolvency professional entity, including work done, reports etc., submitted by them;
8. information memorandum;
9. all filings with the AA, Appellate Authority and their orders;
10. invitation, consideration and approval of resolution plan;
11. statutory filings with IBBI and IPA;
12. correspondence during the CIRP;
13. insolvency resolution process cost;
14. applications for avoidance transactions or fraudulent trading; and
15. any other records, which is required to give a complete account of the CIRP
The IBBI issued the circular in exercise of the powers under clauses (aa) and (g) of sub-section (1) of section 196 of the Insolvency and Bankruptcy Code, 2016 read with regulation 39A of the CIRP Regulations.