Insolvency Professional must keep records of CIRP safe for 8 years
An Insolvency Professional (IP) should preserve copies of records generated in electronic form for a minimum period of eight years, from the date of completion of the CIRP or the conclusion of any proceeding relating to CIRP, before the Adjudicating Authority (AA), Appellate Authority or Court, or any matter pending with the Board, whichever is later.
In a circular issue by the Insolvency and Bankruptcy Board of India (IBBI), the regulator also requires the IPs to preserve copies of any other records (other than related to completion of CIRP), for minimum period of three years in physical form, and for minimum period of eight years in electronic form, from the date of completion of the CIRP or the conclusion of any proceeding relating to CIRP, before the Adjudicating Authority (AA), Appellate Authority or Court, or any matter pending with the Board, whichever is later.
S/he is required to preserve the following copies of records relating to/forming basis for:
(1) His appointment as IRP or RP, including the terms of appointment;
(2) Handing over / taking over by him;
(3) Admission of CD into CIRP;
(4) Public announcement;
(5) The constitution of CoC and CoC meetings;
(6) Claims, verification of claims, and list of creditors;
(7) Engagement of professionals, registered valuers, and insolvency professional entity, including work done, reports etc., submitted by them;
(8) Information memorandum;
(9) All filings with the AA, Appellate Authority and their orders;
(10) Invitation, consideration and approval of resolution plan;
(11) Statutory filings with IBBI and IPA;
(12) Correspondence during the CIRP;
(13)Insolvency resolution process cost pertaining to CIRP;
(14) Avoidance transactions or fraudulent trading; and
(15) Any other records, which is required to give a complete account of the CIRP.
According to the circular, an IP should preserve the records at a secure place and ensure that unauthorised persons do not have access to the same. For example, he may store copies of records in electronic form with an Information Utility. Notwithstanding the place and manner of storage, the IP should be under obligation to produce records as may be required under the Code and the Regulations.
Besides the regulator further says that the IP should preserve records relating to that period of a CIRP which he has handled, irrespective of the fact that he did not continue the assignment till its conclusion. For example, an IP served for three months as RP before he was replaced by another IP, who served till conclusion of the CIRP. The former shall preserve records relating to the first three months, and the latter shall preserve records relating to the balance period of the CIRP.
