Valuation under IBC
Circular No.: IBBI/RVO/026/2019
The Insolvency and Bankruptcy Code, 2016 (i.e. the Code) is making far-reaching changes in the business scenario of the country by overhauling the existing corporate insolvency and liquidation framework.
A list of the provisions of the Act and the Code under which valuations are required to be conducted by a registered valuer:
| Regulation | Particulars |
|---|---|
| Section 59(3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016 | Voluntary liquidation of corporate persons |
| Section 46(2) of the Insolvency and Bankruptcy Code, 2016 | Relevant period for avoidable transactions |
| Regulation 27 read with regulation 35 of the IBBI(Insolvency Resolution Process for Corporate Persons) Regulations, 2016 | 1) Appointment of registered valuers; 2) Fair value and liquidation value |
| Regulation 35 of the IBBI(Liquidation Process) Regulations, 2016 | Valuation of assets intended to be sold |
| Regulation 3(1)(b)(ii) of the IBBI (Voluntary Liquidation Process) Regulations, 2017 | Initiation of liquidation |
| Regulation 26 of the IBBI(Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 | Appointment of registered valuer |
| Regulation 34 of the IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 | Fair value and liquidation value |