The Insolvency & Bankruptcy Code 2016 (“IBC”) is unique legislation in which the applicant/creditor not only does good for him but for the other creditors as well. A creditor, be it be Financial Creditor[1], or Operation Creditor[2] or the Corporate Debtor[3] itself can file an application before the jurisdictional National Company Law Tribunal (“NCLT”) praying to initiate Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor.
Consequentially after admitting the application for CIRP, the Adjudicating Authority i.e. the NCLT appoints an Interim Resolution Professional (“IRP”). While filing an application for CIRP by any Financial Creditor or the Corporate Debtor itself, it is mandatory to propose the name of a Resolution Professional, however, it has been kept optional for any application by Operational Creditor.
Immediately, after being appointed as an IRP, it is obligatory upon the Insolvency Professional to make a public announcement inviting claims from the creditors within 3 three days of the commencement of the CIRP[4]. The public announcement has to be published in one English and one regional language newspaper with wide circulation at the registered office and principal/corporate office of the corporate debtor[5].
In addition to it, the public announcement also requires to be published on the website of the corporate debtor[6] and on any website as designated by the Insolvency & Bankruptcy Board of India (“IBBI”)[7].
As a creditor, one should always keep a look at the public announcement after the CIRP is initiated or alternatively may contract the IRP, whose contact details are provided in the CIRP commencement Order of NCLT. IBBI has also dedicated a page for public announcements by Insolvency professionals, which may be accessed by clicking here.
After the public announcement has been published, it is now the duty of the creditors to submit claims before the IRP on or before the last date of submission as mentioned in the public announcement which can’t be more than 14 days from the date of publication[8]. However, in case any creditor has missed the deadline of 14 days, he can still file the claim before the IRP or RP, as the case may be, on or before the ninetieth day of the CIRP commencement date[9].
FILING OF CLAIM BY AN OPERATIONAL CREDITOR (OC)
An operational creditor, other than the workmen or employee, may submit their claim with proof to the IRP in FORM B, which may be downloaded by clicking here. The OC will be required to provide details such as Name, Identification proof, Address of the Operational Creditor in addition to the total amount of claim along with substantiated documents. The OC shall also provide details of any dispute with the Corporate Debtor if pending qua the debt.
FILING OF CLAIM BY A FINANCIAL CREDITOR (FC)
A Financial Creditor, other than class of creditor may submit their claim with proof to the IRP in electronic form in FORM C, which may be downloaded by clicking here. The FC will be required to provide details such as Name, Identification proof, Address of the Financial Creditor in addition to the total amount of claim along with substantiated documents. The FC shall also provide financial statements showing that debt has not been paid or order of a court or tribunal that has adjudicated upon the non-payment of a debt.
FILING OF CLAIM BY A CLASS OF CREDITOR (HOME-BUYER)
A Class of Creditor generally a home-buyer, may submit their claim with proof to the IRP in electronic form in FORM CA, which may be downloaded by clicking here. The Class of Creditors will be required to provide details such as Name, Identification proof, Address of the Financial Creditor in addition to the total amount of claim along with substantiated documents. The existence of debt due to the creditor may be proved on the basis of records available with the Information Utility; or other relevant documents like Agreement to Sell, Letter of Allotment, Receipt of payment etc. The Class of Creditor shall also have to indicate its choice of insolvency professional from the three choices provided by the IRP in the public announcement, to act as its authorised representative.
FILING OF CLAIM BY WORKMEN & EMPLOYEES
An employee or workmen of the Corporate Debtor may submit their claim (unpaid salary/wages) with proof to the IRP in electronic form or by post in FORM D, which may be downloaded by clicking here. If there are innumerable employees or workmen, who need to file claim, they can cumulatively submit their claim through an Authorised Representative in FORM E, which may be downloaded by clicking here. The existence of dues may be proved on basis of records available with the Information Utility; or other relevant documents like a proof of employment such as contract of employment for the period for which such workman or employee is claiming dues; evidence of notice demanding payment of unpaid dues and any documentary or other proof that payment has not been made; or an order of a court or tribunal that has adjudicated upon the non-payment of dues, if any.
FILING OF CLAIM BY OTHER CREDITORS
A creditor, other than those covered above, may also submit their claim to the IRP or RP, as the case may be, in electronic means or by post in FORM F, which may be downloaded by clicking here. The existence of dues may be proved on basis of records available with the Information Utility; or other relevant documents like documentary evidence demanding satisfaction of the claim; bank statements of the creditor showing non-satisfaction of claim; an order of court or tribunal that has adjudicated upon non-satisfaction of claim, if any.
Disclaimer: The above information has been provided as per the law in praesentia. It is advised to take proper expert advice. Individuals having difficulty in submitting claim, may contact the concerned through email on kumardeepraj55@gmail.com or by clicking here.
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[1] Under Section 7 of the Insolvency & Bankruptcy Code 2016 [2] Under Section 9 of the Insolvency & Bankruptcy Code 2016 [3] Under Section 10 of the Insolvency & Bankruptcy Code 2016 [4] Under Rule 6(1) if the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 [5] Under Rule 6(2)(b)(i) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 [6] Under Rule 6(2)(b)(iii) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 [7] Under Rule 6(2)(b)(iv) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 [8] Under Rule 6(2)(c) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 [9] Under Rule 12(2) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
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