The Insolvency and Bankruptcy Board of India (IBBI) has the 2016 regulations on the corporate insolvency resolution process (CIRP) to allow for . The interim representative will act until the authorities appoint an authorised representative.
This change will allow for effective representation during the CIRP, especially when the class of creditors comprises a large number of entities, such as homebuyers.
The amendment states the insolvency professional selected as the interim representative of the class of creditors shall be valid until the authority decides the application for authorised representation.
The interim representative will be able to act in the same manner as an authorised representative. To enable this, the interim representative has been extended the same rights and responsibilities as the authorised representative in a committee of creditors meeting.
The amendment also provides that where the insolvency professional has been chosen to act as the authorised representative by a financial creditor, form CA must be used, and the application must be completed within the timeframe stated in the public announcement. Failure to adhere to the timeline would result in the authorities not considering the application.
This new development takes effect from 24 September 2024.
