IBBI requests that resolution specialists distribute reports to debtors and creditors.

The Insolvency and Bankruptcy Board of India (IBBI) has released a circular directing resolution professionals (RPs) to distribute copies of their findings to creditors and debtors involved in bankruptcy cases in order to maintain fairness in these proceedings. The circular identifies situations in which RPs did not grant both participants equal access to information, resulting in a mismatch in comprehension.
The notice said, "It has been observed that in certain cases, the RPs have not shared a copy of the report with both debtor and creditor, leading to a lack of equal information access among them." stating, "Therefore, it is hereby advised that the RP shall provide a copy of the report to both debtor and creditor in all cases."

After receiving applications from creditors or debtors, RPs are mandated under the Insolvency and Bankruptcy Code (IBC) guidelines to submit reports to the adjudicating body. These reports include assessments and suggestions regarding whether to accept or reject the application. The IBBI seeks to guarantee "transparency and informed decision-making" by making these reports available to both creditors and debtors.

This is a part of the IBBI's continuous efforts to improve the effectiveness and smoothness of the insolvency case processing. According to IBBI data, a considerable proportion of resolves remain unresolved for more than 270 days, exceeding the 180-day term that is specified from the date of application admission. This emphasizes the necessity of taking action to improve efficiency and hasten the settlement process.
In an effort to improve coordination and harmonization between the two procedures, the IBBI also removed limits earlier this month, allowing the same insolvency specialist to conduct the resolution process for both a company and its personal guarantor. Furthermore, modifications have been made to the need that Committee of Creditors sessions in cases of insolvency including personal guarantors be held.