On December 21, 2023, IBBI issued a Clarification regarding the submission of particulars and declaration by the Insolvency Professionals in the application filed by creditor(s).

Section 95 of the Insolvency and Bankruptcy Code (“the Code”) read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (IRP PGCD Rules) allows the creditor to apply for initiation of Insolvency Resolution Process of personal guarantors to corporate debtors.

The creditor may apply either himself or jointly with other creditors or through a Resolution Professional (RP) in Form C of the IRP PGCD Rules. Where the application is filed through RP, the particulars and declarations by such RP are provided in Part IV of Form C of the IRP PGCD Rules.

In such cases, the Adjudicating Authority (AA) after confirming that there is no pendency in respect of disciplinary proceedings against the RP from the database shared by the Insolvency and Bankruptcy Board of India, appoints the proposed RP by an Order under section 97 (5) of the Code.

In certain cases, the creditor may file the application itself recommending the name of the Insolvency Professional to be appointed as RP. In such cases, the Insolvency Professional proposed to be appointed as RP shall also provide the particulars of and declaration in Part IV of Form C of the IRP PGCD Rules to the creditor for the consideration of the AA.

The link for the aforesaid discussion paper is as follows
https://ibbi.gov.in/uploads/whatsnew/241d9180c2501ea510b61f64a122b67f.pdf