{"id":10254,"date":"2021-01-08T23:23:07","date_gmt":"2021-01-08T17:53:07","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=10254"},"modified":"2022-01-18T11:34:31","modified_gmt":"2022-01-18T06:04:31","slug":"required-to-preservation-maintain-records-8-years-by-ips-under-ibc","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/","title":{"rendered":"Required to Preservation &#038; maintain records (8 Years) by IP"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e141903b120\" 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: #000000;color:#000000\" 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: #000000;color:#000000\" 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-69e141903b120\"  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:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#Need_to_Keep_and_maintain_records_up_to_8_YRs_by_Insolvency_Professionals\" title=\"Need to Keep and maintain records up to 8 YRs by Insolvency Professionals\">Need to Keep and maintain records up to 8 YRs by Insolvency Professionals<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#Applicable_regulatory_provisions\" title=\"Applicable regulatory provisions:\">Applicable regulatory provisions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#Regulation_72_of_the_IBBI_Insolvency_Professionals_Regulation_2016\" title=\" Regulation 7(2) of the IBBI (Insolvency Professionals) Regulation, 2016:\"> Regulation 7(2) of the IBBI (Insolvency Professionals) Regulation, 2016:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#Clause_19_of_the_Code_of_Conduct_annexed_to_the_First_Schedule_of_the_IP_Regulations\" title=\" Clause 19 of the Code of Conduct annexed to the First Schedule of the IP (Regulations)\"> Clause 19 of the Code of Conduct annexed to the First Schedule of the IP (Regulations)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#Authority_to_IBBI_the_Board_to_conduct_an_inspection_of_records_etc\" title=\" Authority to IBBI (the Board) to conduct an inspection of records, etc.\"> Authority to IBBI (the Board) to conduct an inspection of records, etc.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#Manner_in_which_records_can_be_managed_to_keep\" title=\" Manner in which records can be managed to keep:\"> Manner in which records can be managed to keep:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#IBBI_directs_the_retention_of_records_in_accordance_with_Regulation_39A_of_the_CIRP_Regulations_as_given_below\" title=\" IBBI directs the retention of records in accordance with Regulation 39A of the CIRP Regulations as given below:\"> IBBI directs the retention of records in accordance with Regulation 39A of the CIRP Regulations as given below:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#i_IP_shall_be_maintained_time_and_manner_of_record-keeping\" title=\"(i) IP shall be maintained (time and manner of record-keeping)-\">(i) IP shall be maintained (time and manner of record-keeping)-<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#ii_Period_for_which_the_records_are_to_be_retained_and_preserved\" title=\"(ii)\u00a0 Period for which the records are to be retained and preserved:\">(ii)\u00a0 Period for which the records are to be retained and preserved:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#iii_An_Insolvency_Professional_must_retain_copies_of_records_relating_to_or_forming_the_basis_of\" title=\"(iii) An Insolvency Professional must retain copies of records relating to or forming the basis of:\">(iii) An Insolvency Professional must retain copies of records relating to or forming the basis of:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#iv_Place_Authorization_for_Documents_Preservation\" title=\"(iv) Place &amp; Authorization for Documents Preservation:\">(iv) Place &amp; Authorization for Documents Preservation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/required-to-preservation-maintain-records-8-years-by-ips-under-ibc\/#IBC_Forms_Insolvency_and_Bankruptcy_Code_2016_Forms_Demand_Notices_Returns\" title=\"IBC Forms Insolvency and Bankruptcy Code 2016 Forms Demand Notices Returns\">IBC Forms Insolvency and Bankruptcy Code 2016 Forms Demand Notices Returns<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBBI.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10257\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBBI.png\" alt=\"www.carajput.com; IBBI\" width=\"624\" height=\"191\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBBI.png 405w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBBI-300x92.png 300w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Need_to_Keep_and_maintain_records_up_to_8_YRs_by_Insolvency_Professionals\"><\/span><span style=\"color: #ff6600;\"><strong><u>Need to Keep and maintain records up to 8 YRs by Insolvency Professionals<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IBBI issued a circular No.: IBBI\/CIRP\/38\/2021 dated 06 January 2021, i.e &#8220;Preservation of records relating to the Corporate Insolvency Resolution Process (<a href=\"https:\/\/carajput.com\/publications\/drafting-and-negotiating-of-resolution-plan-under-cirp-under-ibc.pdf\">CIRP<\/a>) by the Insolvency Professional.&#8221; in the exercise of its powers U\/s 196(1)(g)(aa) of the IBC Code, read in along with Regulation 39A of the CIRP Regulations.<\/p>\n<p><em>(The prior Circular was issued in this regard though the Circular No. IBBI\/CIRP\/37\/2021 of 4<sup>th<\/sup> Jan 2021)<\/em><\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>This Circular has been issued to: <\/strong><\/span>\n<ul>\n<li>Every Registered IPs<\/li>\n<li>Every Recognized IPE<\/li>\n<li>Every Registered IPA<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><em>(By address to authorized email accounts and to the IBBI website)<\/em><\/p>\n<p><em>An Insolvency Professional (IP) is required to keep a number of records relating to the assignments carried out by him under the Insolvency and Bankruptcy Code, 2016 (Code) read in the Regulatory Requirements.<\/em><\/p>\n<p>Also Read :\u00a0<a href=\"https:\/\/carajput.com\/blog\/ibc-ordinance-2020-after-the-impact-covid-19-covid-period-defaults-cannot-be-triggered-by-cirp\/\">IBC ordinance 2020 after the impact covid-19 covid period defaults cannot be triggered by cirp<\/a>\\<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Applicable_regulatory_provisions\"><\/span><span style=\"color: #000080;\"><strong><em>Applicable regulatory provisions:<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11595\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18.jpg\" alt=\"www.carajput.com; IBBI\" width=\"817\" height=\"562\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18.jpg 500w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18-300x206.jpg 300w\" sizes=\"(max-width: 817px) 100vw, 817px\" \/><\/a><\/p>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Regulation_72_of_the_IBBI_Insolvency_Professionals_Regulation_2016\"><\/span><span style=\"color: #000080;\"><strong><em><span style=\"color: #000080;\"> Regulation 7(2) of the IBBI (Insolvency Professionals) Regulation, 2<\/span>016:<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><em>The registration provided to the Insolvency Professionals shall be subject to the condition that it keeps records of all assignments undertaken by it under the Code for at least 3 years from the date of finalization of such assignment.<\/em><\/p>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Clause_19_of_the_Code_of_Conduct_annexed_to_the_First_Schedule_of_the_IP_Regulations\"><\/span><span style=\"color: #000080;\"><strong><em><span style=\"color: #000080;\"> Clause 19 of the Code of Conduct annexed to the First Schedule of the IP (Regulations<\/span>)<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><em>This obligation provides the Insolvency Professionals to provide all documentation as may be needed by the Board or the insolvency professional agency (IPA) with which it is enrolled.<\/em><\/p>\n<ol start=\"3\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Authority_to_IBBI_the_Board_to_conduct_an_inspection_of_records_etc\"><\/span><span style=\"color: #000080;\"><strong><em> Authority to IBBI (the Board) to conduct an inspection of records, etc.<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><em>Regulation 3(4)(a) of the IBBI Regulation (Inspection and Investigation) 2017 (Inspection Regulations) provides that the IBBI may carry out an inspection, inter alia, to ensure that the records are maintained by the Insolvency Professionals in the manner required by the applicable legislation. Regulation 4(2) and Regulation 8(2) of the Inspection Regulations enable the Inspecting Authority\/Inspecting Authority to guide the Insolvency Professionals to submit records as may be considered necessary.<\/em><\/p>\n<ol start=\"4\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Manner_in_which_records_can_be_managed_to_keep\"><\/span><span style=\"color: #000080;\"><strong><em><span style=\"color: #000080;\"> Manner in which records can be managed to kee<\/span>p:<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><em>Regulation 39A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (<\/em>Corporate Insolvency Resolution Process <em>Regulations) mandate the Interim Resolution Professional (IRP) and the Resolution Professional (RP) to continue to maintain both a physical and an electronic version of the Corporate Insolvency Resolution Process records of the Corporate Debtor (CD) as per the record retention schedule as provided by the IBBI after proper communications with IPAs.<\/em><\/p>\n<p>Also Read :<a href=\"https:\/\/carajput.com\/learn\/fresh-ibc-has-been-suspended-for-one-year-as-per-the-declaration-of-fm.html\">Suspension of Fresh IBC for 1 Year declared By FM<\/a><\/p>\n<ol start=\"5\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"IBBI_directs_the_retention_of_records_in_accordance_with_Regulation_39A_of_the_CIRP_Regulations_as_given_below\"><\/span><span style=\"color: #000080;\"><strong><em><span style=\"color: #000080;\"> IBBI directs the retention of records in accordance with Regulation 39A of the CIRP Regulations as given belo<\/span>w:<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<h4><span class=\"ez-toc-section\" id=\"i_IP_shall_be_maintained_time_and_manner_of_record-keeping\"><\/span><span style=\"color: #000080;\"><strong><em>(i) IP shall be maintained (time and manner of record-keeping)-<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"padding-left: 40px;\"><em>(a) an electronic copy of all records (physical and electronic) for the least period of 8 years; and (+)<\/em><\/p>\n<p style=\"padding-left: 40px;\"><em>(b) a physical copy of the records for the least period of 3 years, from the completion date of the Corporate Insolvency Resolution Process or the assertion of any proceeding pertaining to the CIRP, before the Board, the Adjudicating Authority (AA), the Appellate Authority or any Court, whichever is later.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"ii_Period_for_which_the_records_are_to_be_retained_and_preserved\"><\/span><span style=\"color: #000080;\"><strong><em>(ii)\u00a0 Period for which the records are to be retained and preserved:<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>The IP shall keep documents related to that period of time of the <\/em>Corporate Insolvency Resolution Process <em>when it has acted as an IRP or RP, regardless of the fact that it has not taken up the assignment from the outset or continues to do so.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"iii_An_Insolvency_Professional_must_retain_copies_of_records_relating_to_or_forming_the_basis_of\"><\/span><span style=\"color: #000080;\"><strong>(iii) An Insolvency Professional must retain copies of records relating to or forming the basis of:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/CIRP.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10259\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/CIRP.jpg\" alt=\"www.carajput.com; IBBI\" width=\"863\" height=\"555\" \/><\/a><\/p>\n<ul>\n<li>The documents of Public announcement.<\/li>\n<li>All the documents related to the constitution of CoC and CoC meetings;<\/li>\n<li>Related documents his appointment as IRP or RP, including the terms of appointment.<\/li>\n<li>documents related to handing over \/ taking over by him;<\/li>\n<li>any information memorandum.<\/li>\n<li>all the applications for fraudulent trading or avoidance transactions and<\/li>\n<li>documents of complete all filings with the <em>Adjudicating Authority<\/em>, Appellate Authority, and their orders.<\/li>\n<li>all the documents of invitation, consideration and approval of resolution plan;<\/li>\n<li>Copy of admission of <em>Corporate Debtor <\/em>into Corporate Insolvency Resolution Process.<\/li>\n<li>All the documents of claims, verification of claims, and list of creditors.<\/li>\n<li>complete statutory filings with IBBI and IPA;<\/li>\n<li>all the correspondence during the Corporate Insolvency Resolution Process;<\/li>\n<li>invoices copy and insolvency resolution process cost.<\/li>\n<li>copy of engagement of professionals, registered valuers, and insolvency professional entity, including work done, reports etc., submitted by them;<\/li>\n<li>other relevant records, which is needed to give a finalization account of the <a href=\"https:\/\/carajput.com\/publications\/drafting-and-negotiating-of-resolution-plan-under-cirp-under-ibc.pdf\">Corporate Insolvency Resolution Process<\/a>.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"iv_Place_Authorization_for_Documents_Preservation\"><\/span><span style=\"color: #000080;\"><strong>(iv) Place &amp; Authorization for Documents Preservation:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Insolvency Resolution shall maintain records in a safe place and make sure that unauthorized persons do not have entry to them.<\/p>\n<p><span style=\"color: #800080;\"><strong>For example, <\/strong><\/span>copies of records may be stored in digital form with the Information Utility. Despite the apparent location and ways of storage, the IP obligated to produce the documents as may be required by the Code and the Regulations.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>Link of the Circular: <a href=\"https:\/\/www.ibbi.gov.in\/uploads\/legalframwork\/f8d420c06d50a94068157e0324067d26.pdf\">Download Guidelines<\/a><\/strong><\/span><\/p>\n<p>More read:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"IBC_Forms_Insolvency_and_Bankruptcy_Code_2016_Forms_Demand_Notices_Returns\"><\/span><a href=\"https:\/\/carajput.com\/blog\/ibc-forms-insolvency-and-bankruptcy-code-2016-forms-demand-notices-returns\/\">IBC Forms Insolvency and Bankruptcy Code 2016 Forms Demand Notices Returns<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Need to Keep and maintain records up to 8 YRs by Insolvency Professionals IBBI issued a circular No.: IBBI\/CIRP\/38\/2021 dated 06 January 2021, i.e &#8220;Preservation of records relating to the Corporate Insolvency Resolution Process (CIRP) by the Insolvency Professional.&#8221; in the exercise of its powers U\/s 196(1)(g)(aa) of the IBC Code, read in along with &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8788],"tags":[9621,9622,9620,9623],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10254"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=10254"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10254\/revisions"}],"predecessor-version":[{"id":10258,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10254\/revisions\/10258"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=10254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=10254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=10254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}