{"id":7766,"date":"2024-08-24T10:52:48","date_gmt":"2024-08-24T10:52:48","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=7766"},"modified":"2025-12-31T14:07:34","modified_gmt":"2025-12-31T14:07:34","slug":"cirp-in-msme-sector-status-of-cd","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/","title":{"rendered":"RP Responsibility to ensure CIRP in MSME sector status of CD"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4298\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/03\/Engine-of-Growth-in-India-MSME.jpg\" alt=\"Engine of Growth in India -MSME\" width=\"1117\" height=\"682\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dbb0386d906\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dbb0386d906\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Amendment_to_Reg_36_of_CIRP_Reg-_for_CIRP_effectiveness_in_MSME\" title=\"Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME\">Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Key_Highlights_of_the_Proposal_in_Amendment_to_Reg_36_of_CIRP_Reg-_for_CIRP_effectiveness_in_MSME\" title=\"Key Highlights of the Proposal in Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME\">Key Highlights of the Proposal in Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Disclosure_Requirement_as_per_Reg_36_of_CIRP_Reg\" title=\"Disclosure Requirement as per Reg 36 of CIRP Reg\">Disclosure Requirement as per Reg 36 of CIRP Reg<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Udyam_Registration_Certificate_before_making_the_disclosure_in_Information_Memorandum\" title=\"Udyam Registration Certificate before making the disclosure in Information Memorandum:\u00a0\">Udyam Registration Certificate before making the disclosure in Information Memorandum:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Rationale_Potential_resolution_applicants\" title=\"Rationale: Potential resolution applicants\">Rationale: Potential resolution applicants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Public_Comments\" title=\"Public Comments:\">Public Comments:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Implications_of_Proposal_in_Amendment_to_Reg_36_of_CIRP_Reg\" title=\"Implications of Proposal in Amendment to Reg 36 of CIRP Reg\">Implications of Proposal in Amendment to Reg 36 of CIRP Reg<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#IFCCL-_Insolvency_and_Bankruptcy_Services\" title=\"IFCCL- Insolvency and Bankruptcy Services\">IFCCL- Insolvency and Bankruptcy Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Authorized_Representative_for_Class_of_Creditors_in_Committee_of_Creditors_CoC\" title=\"Authorized Representative for Class of Creditors in Committee of Creditors (CoC)\">Authorized Representative for Class of Creditors in Committee of Creditors (CoC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cirp-in-msme-sector-status-of-cd\/#Key_Responsibilities_of_an_Authorized_Representative_of_Financial_Creditors\" title=\"Key Responsibilities of an Authorized Representative of Financial Creditors:\">Key Responsibilities of an Authorized Representative of Financial Creditors:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Amendment_to_Reg_36_of_CIRP_Reg-_for_CIRP_effectiveness_in_MSME\"><\/span><span style=\"color: #000080;\"><strong>Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The discussion paper from the Insolvency and Bankruptcy Board of India on August 23, 2024, proposes a significant amendment to Regulation 36 of the CIRP Regulations. The proposal aims to address the current gap in the disclosure requirements for corporate debtors under the Insolvency and Bankruptcy Code, 2016, by mandating the inclusion of information regarding the MSME status of the corporate debtors in the information memorandum.<\/p>\n<p>The Insolvency and Bankruptcy Board of India&#8217;s proposed amendment is a welcome move towards enhancing transparency in the Corporate Insolvency Resolution Process for Micro, Small &amp; Medium Enterprises. It addresses a critical gap in the current regulatory framework by ensuring that the Micro, Small &amp; Medium Enterprises status of corporate debtors is disclosed upfront. This change could lead to more informed decision-making by potential resolution applicants and improve the overall effectiveness of the Corporate Insolvency Resolution Process in the Micro, Small &amp; Medium Enterprises sector.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Highlights_of_the_Proposal_in_Amendment_to_Reg_36_of_CIRP_Reg-_for_CIRP_effectiveness_in_MSME\"><\/span><span style=\"color: #000080;\"><strong>Key Highlights of the <a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/archives\/proposal-in-amendment-to-reg-36-of-cirp-reg-for-cirp-effectiveness.pdf\">Proposal in Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Disclosure_Requirement_as_per_Reg_36_of_CIRP_Reg\"><\/span><span style=\"color: #000080;\"><strong>Disclosure Requirement as per Reg 36 of CIRP Reg<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The proposed amendment mandates that the status of a corporate debtor, whether it is registered as a Micro, Small, or Medium Enterprise under the Micro, Small, and Medium Enterprises Development Act, 2006, be explicitly disclosed in the Information Memorandum prepared by the Resolution Professional.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Udyam_Registration_Certificate_before_making_the_disclosure_in_Information_Memorandum\"><\/span><span style=\"color: #000080;\"><strong>Udyam Registration Certificate before making the disclosure in Information Memorandum:\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If available documents indicate that the corporate debtor falls within the MSME category, the Resolution Professional may obtain an <strong>Udyam Registration Certificate<\/strong> before making the disclosure in the IM. This ensures that the MSME status is formally recognized, reducing ambiguity.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Rationale_Potential_resolution_applicants\"><\/span><span style=\"color: #000080;\"><strong>Rationale: Potential resolution applicants<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Reducing Information Asymmetry: The amendment seeks to provide clarity on the MSME status of the Corporate Debtors, which is crucial for potential resolution applicants. This clarity can reduce disputes and delays in the resolution process.<\/li>\n<li>Encouraging Participation: By making MSME status information readily available, the proposal may attract more resolution applicants, particularly those who seek out Micro, Small &amp; Medium Enterprises for their unique advantages, such as simplified compliance requirements and government incentives.<\/li>\n<li>Value Maximization: Increased participation from resolution applicants could lead to better competitive bids, ultimately maximizing the value for creditors.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Public_Comments\"><\/span><strong><span style=\"color: #000080;\">Public Comments:<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Insolvency and Bankruptcy Board of India&#8217;s has invited stakeholders to submit comments on this proposal by September 12, 2024. The comments can be submitted electronically through the The Insolvency and Bankruptcy Board of India website.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Implications_of_Proposal_in_Amendment_to_Reg_36_of_CIRP_Reg\"><\/span><span style=\"color: #000080;\"><strong>Implications of Proposal in Amendment to Reg 36 of CIRP Reg<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>For Resolution Professionals: This amendment adds a new responsibility, requiring them to ensure that the Micro, Small &amp; Medium Enterprises status of the Corporate Debtors is accurately reflected and supported by appropriate documentation, such as the Udyam Registration Certificate.<\/li>\n<li>Resolution Applicants: The proposed disclosure could be a critical factor in determining eligibility and strategic interest in bidding for the Corporate Debtors. It will particularly benefit those targeting Micro, Small &amp; medium enterprises for their potential incentives and benefits.<\/li>\n<li>For the Insolvency Process: By reducing information asymmetry, the amendment could streamline the resolution process, making it more efficient and potentially reducing the time taken to resolve Micro, Small &amp; Medium Enterprises cases.<\/li>\n<li>Stakeholders are encouraged to review the discussion paper and provide their comments to help shape the final regulations.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"IFCCL-_Insolvency_and_Bankruptcy_Services\"><\/span><span style=\"color: #000080;\"><strong>IFCCL- Insolvency and Bankruptcy Services<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>IFCCL is a Company specializing in a comprehensive range of Insolvency and Bankruptcy services, established specifically to address the evolving needs under the Insolvency and Bankruptcy Code (IBC), 2016. With a registered office in New Delhi, IFCCL\u00a0 is positioned to serve clients nationwide.<\/li>\n<li>Our expertise covers Insolvency Advisory, Business Turnarounds, Liquidation Process Management, and related services as defined under the Code. IFCCL\u00a0 operates as an Insolvency Professional support Services, with a dedicated team of seasoned professionals who bring decades of experience in their fields. This team includes Senior Bankers, Industry Experts, Chartered Accountants, Company Secretaries, Lawyers, Accountants, and other professionals, all of whom collaborate to fulfill the duties and responsibilities required by the IBC.<\/li>\n<li>Our services include Process Advisory, Resolution Plan Preparation, Liquidation Process Management, and Resolution Plan Implementation. We are committed to adhering to the strict timelines mandated for the Corporate Insolvency Resolution Process under IBC, striving to achieve optimal solutions within these frameworks. We focus on preserving and protecting the assets of corporate debtors, including ensuring the continuity of business operations.<\/li>\n<li>At IFCCL, we value all client engagements, providing exceptional service regardless of contract size. Our team brings a high level of dedication and experience, ensuring our clients can navigate the changing dynamics of the IBC with confidence. We are actively seeking opportunities for strategic collaborations with fellow insolvency professionals and welcome discussions on potential partnerships.<\/li>\n<\/ul>\n<h3 data-start=\"145\" data-end=\"233\"><span class=\"ez-toc-section\" id=\"Authorized_Representative_for_Class_of_Creditors_in_Committee_of_Creditors_CoC\"><\/span><span style=\"color: #000080;\"><strong data-start=\"149\" data-end=\"233\">Authorized Representative for Class of Creditors in Committee of Creditors (CoC)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"235\" data-end=\"635\">IFCCL brings together a team of more than 10 experienced insolvency professionals, all registered with the Insolvency and Bankruptcy Board of India. Our partners are strategically located across key cities including Gurgaon, Delhi, Mumbai, Noida enabling pan-India coverage and responsiveness. We are well-positioned to act as Authorized Representatives for a class of financial creditors in the Committee of Creditors under the Insolvency and Bankruptcy Code, 2016.<\/p>\n<h3 data-start=\"846\" data-end=\"930\"><span class=\"ez-toc-section\" id=\"Key_Responsibilities_of_an_Authorized_Representative_of_Financial_Creditors\"><\/span><span style=\"color: #000080;\"><strong data-start=\"850\" data-end=\"930\">Key Responsibilities of an Authorized Representative of Financial Creditors:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"932\" data-end=\"1087\">As per Regulation 16A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the Authorized Representative is entrusted with:<\/p>\n<ol data-start=\"1089\" data-end=\"2076\">\n<li data-start=\"1089\" data-end=\"1258\">\n<p data-start=\"1092\" data-end=\"1127\">Collecting Voting Instructions: Obtaining voting preferences from the creditors in the class (e.g., homebuyers, debenture holders) prior to each CoC meeting.<\/p>\n<\/li>\n<li data-start=\"1260\" data-end=\"1465\">\n<p data-start=\"1263\" data-end=\"1304\">Attending and Voting in CoC Meetings: Participating in CoC meetings on behalf of the class of creditors. and Casting votes in accordance with instructions received from creditors in the class.<\/p>\n<\/li>\n<li data-start=\"1467\" data-end=\"1710\">\n<p data-start=\"1470\" data-end=\"1500\">Communicating Effectively: Acting as the single point of contact between the Resolution Professional (RP) and the creditors in the class. and Sharing notices, agendas, minutes, and other relevant documents with creditors promptly.<\/p>\n<\/li>\n<li data-start=\"1712\" data-end=\"1911\">\n<p data-start=\"1715\" data-end=\"1760\">Ensuring Transparency and Representation: Ensuring the views and interests of the class are adequately represented and protected during the Corporate Insolvency Resolution Process (CIRP).<\/p>\n<\/li>\n<li data-start=\"1913\" data-end=\"2076\">\n<p data-start=\"1916\" data-end=\"1948\">Maintaining Confidentiality: Upholding fiduciary duties and maintaining confidentiality of sensitive information in line with the Code and regulations.<\/p>\n<\/li>\n<\/ol>\n<p><span style=\"color: #333399;\"><strong>You may also review the other article <\/strong><\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/learn\/four-pillars-of-the-insolvency-bankruptcy-code\">Four Pillars of the Insolvency &amp; Bankruptcy Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/category\/insolvency-and-bankruptcy-code\/\">Category: Insolvency and Bankruptcy Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/checklist-of-compliance-requirements-for-rps\/\">checklist of compliance requirements for RPs under IBC<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/\">Overview on Initiation of Liquidation under the IBC<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/learn\/penalty-insolvency-professional-under-ibc-regulations\">Penalty Insolvency Professional under IBC regulations.<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/afa-under-ibc\/\">Overview on Mandatory Requirement of AFA under IBC Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/dos-donts-for-ips-during-moratorium-under-ibc\/\">Do\u2019s &amp; Don\u2019ts for IPs During Moratorium under IBC<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/tag\/ibc-regulation\/\">IBC Regulation<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/services\/ibc-help-homebuyers.php\">IBC Help Homebuyers<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Amendment to Reg 36 of CIRP Reg- for CIRP effectiveness in MSME The discussion paper from the Insolvency and Bankruptcy Board of India on August 23, 2024, proposes a significant amendment to Regulation 36 of the CIRP Regulations. The proposal aims to address the current gap in the disclosure requirements for corporate debtors under the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[658],"tags":[1104],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7766"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=7766"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7766\/revisions"}],"predecessor-version":[{"id":9870,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7766\/revisions\/9870"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=7766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=7766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=7766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}