Company has appointed Rajesh Kumar Goel as Voluntary Liquidator on 14.12.2023. Last date of receipt of claims was 13.01.2024. Intimation to IT Department and GST department sent. Intimation to IBBI sent by Corporate Debtor on 19.01.2024. On 28.01.2024 Preliminary Report sent to Corporate Debtor via email. Last date for verification of claim 12.02.2024.
On 09.02.204 Corporate Debtor informed via email about Replacing Liquidator (Rajesh Kumar Goel). CD also instruc...
The assets of the CD under Liquidation was successfully auctioned on 13.07.2023. However, the Honourable AA on the application filed by erstwhile director of the CD for direction to the liquidator to stay the sale, ordered the auction process to continue but the stayed the issuance of sale certicate only till the application is dispossed of on merit. The application was dispossed of on 11.01.2024.
The Auction purchaser citing the delay requested for inspection of assets purchas...
Regulation 37 of the Voluntary Liquidation Regulation is amended recently on 31-01-2024. As per the amended Regulation 37, meeting of the contributories is to be held after completion of 270 days / 90 days from the liquidation commencement date. For ongoing voluntary liquidation assignments, when the meeting needs to be held pursuant to above amedment?
For example, the liquidation commencement date is say 7th September 2023. As per earlier regulation, the annual meeting of the contr...
REGULATION 27 OF CIRP 2016:
Can an IRP appoint a partner of an IPE (in which the IRP is a a partner) as a professional for rendering serviices in the CIRP?
...
REGULATION 27 OF CIRP 2016:
(1) The resolution professional shall, within seven days of his appointment but not later than fortyseventh
day from the insolvency commencement date, appoint two registered valuers to determine
the fair value and the liquidation value of the corporate debtor in accordance with regulation 35.
(2) The interim resolution professional or the resolution professional, as the case may be, may
...
Dear all
Pleas let me know, is there any process to be followed by Secured Creditor under Section 110 who intends to enforce his Security interest charged to him as security for the debt granted by him.
Because, under liquidation process, as per Section 52, the Secured creditor has to follow certain process as indicated under subsection (1) to (7) of Section 52.
...S.129(2) The statement of financial position shall be submitted in the such form and manner as may be prescribed.
However, no such prescribed form and manner could be found in the Regulations. Where is it available?
...S.130(2) requires a public notice to be published in two leading newspapers. However, the Regulations do not have a prescribed form for this notice. The downloads section at the IBBI website also does not have a format. Is there any prescribed format for public notice under S.130(2) ?
...IRP continued as DRP. DRP is replaced by new RP on 175th day, in such case when Form 1 and II should file ? within seven days of demitting office as IRP or after demitting office as DRP?
...Dear Madam/Sir, FACT: 1. A person through MOU dated 29.01.2014 paid Rs. 2,00,00,000.00 on 22.02.2022 to a private company for issuance of equity shares. The company after getting the money did not issue shares. 2. The company showed such an amount in its B/S. as share application money. It showed an unsecured loan. We filed section 7 application but it was rejected on the ground that it was not loan. The company did not prepare financial statements from 2014-15 onward. 3. As per...
Dear Learned Fellow Members,
Three FCs namely A B &C has contributed CIRP cost aggregating Rs 30 lakhs during CIRP of CD in proportion of their dues. In Liquidation of the same CD, Liquidation cost contribution by three financial creditors Rs 9 lakhs in proportion to their dues as there is no liquid assets except a land mortgaged to FC-B which he has relinquished to Liquidator. Liquidation expenses still payable Rs 1.50 lakh. Land mortgaged to B of the CD sold ...
Dear Learned Fellow members
I seek your views on the following matter :
1. I was appointed IRP by NCLT U/S 9 application
2. COC consisted of a PSU bank , who was the sole FC . I was not on their panel .Hence they resolved in first COC meeting & petitioned to replace me by their empnalled IP as RP .
3. Their petition for change of RP was approved by NCLT on 101 st day of CIRP .
4. Now the issue is : WHO SH...
Please guide me
CD is under liquidation, and do not have any tangible assets otherthan having unabsorbed Depreciation of Approx.of Rs.20.00 Cr and Business Loss of Rs.2.00 cr
1. If CD Sale/ transfer under Liquidation as a going concern , whether acquring entity will be eligible for unabosrbed depreciation allowance ?
2 What will be Position of C/F business loss, whether the acquring entity also get benifited of C/F business loss :?
Hello,
Please guide me on the payment of regulatory fee @ 0.25% of amount realisable to creditors, in terms of regulation 31A(1) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
I had requested IBBI to provide invoice of regulatory f...
During CIRP, Patiala High Court (in a chargesheet filed by EOW) ordered RP "Let compliances u/s 305 CrPC be made qua accused Company by NDOH." even after considering the company is into Moritorium.
Question:
1) Will section 14 moratorium on CD not applicable in criminal matter of EOW?
2) Why will RP represent to CD as an accused party?
3) What are the options with RP?
...Sir
I was appointed as IRP on Dec 15th 2022 and the applicant is only claimant who has filed his claim late .He kept on saying that he will send inital amount of 2 lacs but till today he hasnt.So publication and legal cost etc is being incurred by me out of pocket.Now he says you maange by interim finance and i can only pay some amount few thousand but not your fees which you do from interim finance.
Can i take the plea that the proceedings havn...
The CD has written back during the year the due Input Tax Credit balances of GST and Due Income Tax Refunds from the Income Tax Department for the smooth closure of their entity. Can the Liquidator claim refunds from GST and Income Tax, though those are not appearing in their books but reflecting in the portals of GST and IT?
Is it required to apply for cancellation of GST registration? Where to communicate the liquidation process to the IT and GST depart...
Dear fellow members
I request your opinion on below subject
1. CIRP U/S 9 Initiated four months back . Myself appointed as IRP
2. First COC conducted . SD of CD was present . He did not refer to settlement with OC . I was confirmed as RP
3. Just after COC , SD of CD claims he entered into a settlement with OC and moved NCLAT against admission . NCLAT while recognising the fact of COC formation granted an interim stay .
...
During liquidation, if there are multiple assets having separate security interest of more than one secured FC, like Land is mortgaged with Bank A while Bank B has got a charge on Machinery; in such cases, the Liquidator follows a system, wherein he distribures the amount of the asset with particular charge with that charge-holder only.
What is the basis or law governing the same or is there any caselaw supporting the same?
How can the same system be followed for gov...
Whether Operational creditors will also be the part of Stakeholder Consultation Committee in Liquidation. Whether voting rights will also be assigned to them in terms of Regulation 31 & 31A. Please share your valuable thoughts
...It is settled law that the suits or legal proceedings shall not be instituted or pending suits shall not be contnued during the moratorium declared under CIRP against the Corporate Debtor. Once the liquidation order is passed by the AA, the moratorium comes to an end. However no suits or legal proceedings shall be instituted by or against the Corporate Debtor. Suits or legal proceedings may be initiated by the Corporate Debtor with the approval of the AA.
No mention ...
The Company was admitted into CIRP in the month of December 2022. It is going concern. ESI and EPF dues for the month of October and November were not paid due to technical problem in operating Internet Banking of the Bank. Can we pay those statutory dues during the moratorium period or should they be treated as pre-CIRP dues. The question is should they be paid or should the be asked to submit claim.
...Kindly suggest documentation and regulatory compliance parts (both IIIP and IBC/NCLT) for a simple voluntary liquidation process of a company (Shareholders and from abroad) that is going for liquidation due to non-functional of operation for a long and has no intention to operate any further.
...Dear All,
I have been appointed as Liquidator in one case. Earlier there was another IP acting as RP in the matter. After my appointment I have published Publice Announcment in Form B. But no one come forward to file claim in response of the public announcment. Weather can I consider the same list of Creditors calims made by RP during the CIRP?
...Dear All
Need your advice in the following situation .
In a Section 9 petition ,
1. CD moved NCLAT and NCLAT ordered : (1) CD to pay amount demanded by OC in his original petition ( < 24.03.20) witin two weeks (2) NDOH : Three Weeks ( 3 ) In the meantime , in pursuance of admission order no further steps shall be taken .
2. NCLAT order is before due date of formation of COC . Accordingly no steps to form COC were taken .
...Machinery of a corporate debtor is hypothecated with two financial creditors. One creditor has relinquished it's security interest while the other has not relinquished it. In such case, how to proceed for e-auction of the machinery?
...Hi Sir,
I have clarification on submission of Form CA (regulation 8A). Have received Form CA from the creditor(s) in two parts up to declaration it is on one page, from declaration onwards he has submitted in Rs. 100 stamppaper. Can it be considered as valid format for FORM CA ? to accept the calim.
Additionally claim is recevied under regualtion 12(2) (within 90 days) being class creditor has included myname(RP) as authorised reprsentative, since this is incorr...
Dear Members,
Land in which the factory, office building ,other constructions have been constructed by the Corporate debtor in liquidation are in the name of a director of the CD who is also a guarantor of the credit facility offered by the Bank, secured creditor and has mortgaged the land to the Bank. The Bank i.e. the Secured creditor has relinquished the assets of the CD in favour of the liquidation estate of the CD in liquidation. The Secured creditor has also issued a NOC...
Dear Friends,
I want to know the status of Liquidator who was not RP in the matter and liquidation order has been set aside by the Hon'ble NCLAT. How the Liquidator to proceed further for hand over and payment of fee and other expenses incurred including bills of the Advocate
The ex-Director of the CD has filed appeal against the liquidator order and stay was granted in April 22 with directions to Liquidator not to proceed further processes. ...
Can a Financial creditor having voting right of 75 percent can request for calling COC meeting under Regulation 18(2) and (3) for replacement of RP after approval of Resolution Plan by COC but before it is approved by NCLT
It is stated by some IP collegues that affter approval of Resolution Plan by COC, COC becomes defunt and its meeting can be called only at the direction of AA . Please advise me the correct position
Suresh Kumar Ja...
Our application u/s. 9 is pending before Honourable NCLT. for amount not paid as per the approved resolution plan and the proceeding is on.
At this stage whether applicaiton for liquidation be filed under section 33 of the IBC, 2016 for violation of resolution plan.
Is is permissible to file liquidation petition wheile the application u/s. 9 is pending?
...
Dear Members, I need clarification regarding adding assets owned by the Personal Gurantor in Resolution Plan
The corporate debtors own only the Plant and Machinary.
The unit is set on the lease hold land. Lease period is 10 year, which has alraedy expired.
The Land owner is personnel guarantor s well as mortgagor .
The bank has taken physical possesion of land and building under SARFAESI Act 2002 prior to commencement of CIRP.
...
Dear all, need your help on the below issue from claims perspective -
1. CD (a public Ltd Co., into Biomass power business) is admitted into CIRP u/s 9 application by OC in May'22.
2. There was an agreement (Operating Lease) signed by the CD, Investor (an LLP) and the Owner (Holding Co., of the CD) in 2016.
3. The Investor has run the operations of the CD basis this lease agreement for 5 months in 2017 and there after the operations were stopped a...
Who will approve the financial statements of the Corporate Debtor, which is into liquidation now, and the financial statements pertains to CIRP period/ prior to CIRP period? What if ex directors are not available/ agreeing to sign the same?
...If the commencement of Voluntary Liquidation (i.e. after EGM resolution passed) is in February-2022, is it necessary to change the auditor for Financial year 21-22 or the auditor who signed FY:20-21 can be also sign for 21-22?
...What are the compliances to be made by IRP in respect of filing of IP forms/disclosure with IBBI/IPA on appointment as IRP in Section 95 application. Reply requested from learned friends and experts.
...CIRP for a company commences on 20th of a moth. What happens to the salary and other operational expenses during the pre-admission part of the month. Should we obtain claims for aprt month and pay the salary for the post-admission period? Or the salary for the month becomes due and payable at the end of the month and we pay the whole month's salary and other operational expenses and consider the same as CIRP cost. It is an operational unit.
Thanks in advance.
...In case of liquidator fee payable as a monthly fee as decided by the CoC, till which date the liquidator is entitled for his monthly payment i.e.
(1) till the date of Closure order by AA or
(2) till the date of filing of closure order by the liquidator,
Opinion of experts appreciated.
Thanks
...IRP was not confirmed as RP by CoC in the 1st meeting itself. 2nd & 3rd CoC meetings called during pendency of the application of CoC for change of RP in NCLT,did not approve fees of Valuers and Transaction Auditors, didn't approve RFRP, IM, EM, Publication of Form G and resolved that IRP should not take any action till new RP takes over. However, all regulatory filings GST, Income Tax Returns etc continued by IRP.
2. Finally, new RP took over after about 20 month...
It seems considerable delay happening in CPE updation by IPA & IBBI. This somewhat demotivates me to attend new CPE events. In USA CPA, CMA updates the CPE credits within 24 hours. This way IPA and IBBI could help on this.
...During CIRP process, if COC thinks that Liquidation is only option and they do not want to call for Resolution Plan also. Can they confirm IRP as Liquidator directly without confirming him RP. Please confirm as it is urgent and related to present ongoing case.
...As a process of Voluntary Liquidation, the Liquidator would initiate the process of de-registration with various statutory authorities. However, there will be expenses like that of Liquidator`s Fees, fees for professionals etc. The same would require deduction and payment if TDS. In this case, when to de-register TAN ? Further, in case of payment to lawyers, there will be requirement for RCM for GST. In this case, when the process of de-registration should be initiated ?...
A creditor may propose an Insolvency Professional while filing an application under section 95 of the Code, Now who is to sign Form C, whether the creditor or the Insolvency Professional. If an insolvency professional signs the application then what is the relevance of his report under section 99 of the Code.
...
Under CIRP a claim is lodged by a financial creditor to whom a Coporate Guarantee was given to raise finance by another company.
The claim is accepted as Financial Creditor.
Now, as the claim amount is huge they have become a FC with the majority voting power and dictating entire CIRP, at the cost of interest of other FCs who actually funded to this CD.
How to deal with such situation? is there is any provision in IBC, 2016 to restrict their voting sha...
CD registered under PT, both directors were the only employees, no salary payments made after CIRP, is the CD still required to pay PT annually as per the slab even if no deductions
have been made from employees
...In a CIRP Case COC has rejected the resolution planned and approved to proceed for liquidation . IA under section 33(2) is filed with NCLT for liquidation order. CIRP period is ending (180 days) on 25th Jan 22, where the IA for liquidation is pending and most likely will get listed for hearing in Feb 22, do thr RP still need to apply for CIRP extention given the liquidation is approved by COC and IA is filed with NCLT?
...Dears,
As per regulation 16A (7) states that. “The voting share of a creditor in a class shall be in proportion to the financial debt which includes an interest at the rate of eight per cent per annum unless a different rate has been agreed to between the parties"
Which method of interest calculation will be reasonable here, simple interest or compound interest? If compounding, shall we calculate based on monthly compounding as banks normally do...
I am RP at one of the Builders and Developers Company. One of the Home Buyers is having 9 Units/ Flats, Kindly clarify if the Person or Firm holding 9 Flats is to be treated as Home Buyer or Investor or financial Creditor only. The Flats has not been registered yet.
...Hello All,
I am the IRP, RP and now the liquidator of the CD.
Mine query is, whether I have to file IP-1 again for my consent to act as liquidator.
If not, how to communicate to IBBI about closure of CIRP and start of Liquidation process.
Bhavesh Rathod
...
There are two group Company having common Directors, Management and shareholding. One of the Company is under resolution through Prudential Framework for Resolution of stressed assets ( RBI circular dated 07.06.2019) and the other Company is registered as MSME through Uduog Aadhar Registration certificate. Though, this MSME unit otherwise qualifies for Pre- Pack but whether the fact that other group Company having commomn Directors, Management control and shareholding will have any bear...
CIRP was initiated by X company(a financial creditor) against ABC company, a non functional company. X has no security in the ABC. CIRP commenced and other two financial creditors also filed claim with RP. All the three financial creditors shared CIRP cost. The NCLT passed order for liquidation. X company did not file their claim with the liquidator. Whether, X is liable for sharing the liquidation cost alongwith other two financial creditors.
...
Amendment to Regulation 36A(4A) of CIRP regulation states that "Any modification in the Invitation for expression of interest may be made in the manner as the initial invitation for expression of interest was made: Provided that such modification shall not be made more than once." - Does it mean that the CoC, can not issue FORM G more than twice -First original and the second modification.... What happens for the second time also there are No resolution plans or CoC is not satisfied...
I am Appointed as IRP in a Company. The Company Status on MCA Portal is strike off, I am not able to file INC 28. I have already informed ROC about my appointment as IRP by Email and Speed Post. It has already been updated at MCA Portal that company is under CIRP.
My query is any further compliace need to be done from IRP or Not.
Regards
Lokesh Khadaria
9374724262
...We require the suggestion for sale of old stock of IT Products like Printers and its accessories etc which were not able to sale as per E Auction held 2 times under Regulation 33 of schedule 1 of IBBI (Liquidation Process) Regulations, 2016. No bidder had participated in the bid and the value of stock is reducing due to upgradation of technology of the products. If we try to further for E-Auction for 2-3 times , the expectation of any party to participate in ...
Where a unit is not in operation since last more than 3 years with no financial activity. Still is it necessary to have valuation of Financial assets? Result in these cases will be Zero valuation as legally nothing can be recovered even from Unsecured Loans granted by the Unit.
...Section. 102 of IBC stipulates public announcement shall be caused by NCLT. Can anyone clarify how will it happen? If RP appointed shall cause the public announcement, which form to be used....
In one of the judgements Hon Supreme Court has said that the Recovery certificate issued by DRT extends limitation of 3 years under IBC,2016 and within 3 years of such certificate the creditor may file application u/s 7 for initiation of CIRP.
Whether the same rule applicable for claims also. If such DRT recovery certificate holder submits claim after 3 years shall the IRP/RP admit the claim?
...
In Voluntary Liquidation u/s.59, a party has raised a claim 9-months after the deadline is over. The claim is genuine, and was also provisioned for in books. Being voluntary liquidation & Solvency declaration, what is Liquidator expected to do on this claim? Thanks
...LCD date: feb 2019
Application filed with NCLT for exclusion of lockdown period
NCLT order dated 13.05.2021 says : The liquidation period is further extended by six months from today. Further the period consumed During the
lockdown period also needs to be excluded/exempte...
As per Liquidation regulation 31, stakeholders who submit their claim and accepted by the Liquidator can form SCC. As per regulation 31A, the class of stakeholders includes shareholders / partners. Please clarify :
1. Are shareholders / partners are also expected to file their claims towards capital contribution ?
2. If claim is not filed, will they be included as member of SCC.
...
Dear All,
A unsecured Financial Creditor (say, FC Ltd) was part of the CoC. FC Ltd voted against a resolution plan submitted to the CoC. Then, all the CoC rejected the resolution plan and recommended the Liquidation. NCLT passed the Liquidation Order.
Now, FC Ltd does not want to participate in the Liquidation Process; The underlying reasons being the cost of liquidation to be borne (by FC Ltd) would be significantly more than the final amount (expec...
Dear members,
Can members guide on the concept the following concepts in CIRP 8 Form
a) Insolvency Commencement should have been startted on
and
b) Potential Loss amount
IBBI/IIIP does not have any gudiance on the same.
Thanks
Ajay Gulati
...
I have come across a case where liquidation proceedings are on way. In this situation if promoter approaches the banks for OTS then can an application U/S.12A be filed and process be stopped if bank wish to accept the OTS ?
In that case what is the role of Liquidator and what about his fees.
...Whether the FORM CIRP 1 to 6, once submitted through online portal, can be REVISED ?
Whether the online portal has the option to submit a RVISED FORMs by IPs ?
If so, within how many days the concerned IP can submit a REVISED Form - CIRP ?
What is difference or objectives to submit FORM - CIRP 7, recently introduced ?
...Where a Builder is not delivering the flats and have delayed the delivery of flats by more than 10 years. Now Homebuyers through their association has recognised some new builder as RA who is willing to deliver as per the the wish of association in time bound period.
Is above case eligible for pre packed Insolvency where CD is asked to leave the company by creditors homebuyers and more than 75% of creditors are homebuyers only and there is not any bank and FI i...
In a CIRP of of real estate company there allottee having large groups with total different intrests. There is a where construction has been completed and flats were offered three-four years back for fitout and homebuyers are living there. only their delay compensation and registry is pending.
While flats of other group are only 40-50% completed whille more than 80% amount has been paid.
Can there be two different independent classess be there with independent AR so ...
Dear team
is there a webinar today 29 July21 or 31 July 21 on the topic- Participation fees for Online webinar on Offi ce Infrastructure and Usage of Technology by IPs scheduled on 29th July 2021 - If anyone got the webinar joining link, please share
...Bangalore NCLT requires approval of Adjudicating Authority for appointment of RP - whether it is replacement by new RP or continuation of same RP. Once CoC approves the appointment of RP, and if the NCLT approval takes time ( under the current circumstances more than two to three months ), whether CIRP 2 should be filed or not. In case of filing of Form G, should the same be filed in the name of Old IRP or in the name of new RP
...Sub sectiin (3A) of Section 25A states "Notwithstanding anything to the contrary contained in sub-section (3), the authorised representative under sub-section (6A) of section 21 shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cent. of the voting share of the financial creditors he represents, who have cast their vote:
Provided that for a vote to be cast in respect of an applicati...
Many CIRP/Liquidation processes were extended due to the lockdown and the limitation period. I heard that many CoCs have approved the fee to the RPs during this period. However a few CoCs mainly where PSU banks have a major vote, have denied this, and are forcing the RPs to accept the fee as per their 'empanelment norms'.
is there any instance where the fee is paid to the RPs for the extended period or any case laws to the effect? Kindly enlighten me on thi...
After LCD (Liquidation Commencement Date), company (under liquidation) makes payments of professional charges to CA firm, Liquidator etc. If Company required to deduct TDS, and pay to the Government?
Since company will have only "Receipt & Payment" account, and not "Profit & Loss" account after LCD, is company required to file income-tax return, for the period from LCD till 31st March? Thanks,
...As per the singed balance sheet here is no arrear to be paid for PF for the past 3 years. The company was closed 4 years before. After I send a intimation regarding the voluntary liquidation the PF authorities sent a claim towards interest and penalty. Actually there is no proof of the claim ,How to proceed?
...As per Section 53 (e) , any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date;
f) any remaining debts and dues;
If the sales tax dues claimed during liquidation pertain to period ...
Hello
Can a statutory authority attach a property of the CD for non-payment of current dues even when the moratorium is in place and matter is pending in
SC. also they are insisting on filing claims when the liquidation application has already been filed with NCLT.
solicit your views.
...
Hello Everyone,
Illustration: CIRP period 01st April 2020 to 31st March 2021. CIRP period is still continuing. Insolvency commencement date is 14 February 2020. All the charges were calculated till 13 February 2020 and were submittied by Creditors. Now RP is desirous of preparing financials for FY 20-21 (April 2020 till March 2021)
To finalize financials of CIRP period, should RP consider interest cost accrued during CIRP Period of the financial creditors.
...
Hello Everyone,
Currently CIRP process is going on. CIRP Commencement date is 14th February 2020. During CIRP it was realized that 2018-19 audit was also not done. Accordingly 2018-19 statutory audit was done and promoter directors have signed the financials. Further, 2019-20 transactions are to be reversed as promoter director himself admitted that there are fraudulent transactions and hence awaiting for him to finalize all the corrections to make write offs so that audit can be do...
What is meant by Cost of realization under regulation 36 of IBBI ( Liquidation) Regulations 2016.
Which components forms part of Cost of Realization ?
Whether Auction documents preparation charges, drafting of Sale certificate, Auction platform charges consitute part of cost of realization ?
...
1. I am appointed as Liquidator of one of the Corporate Debtors.
2. During the liquidation period in terms of Section 35(1)(e), the business of the Corporate Debtor is being carried on by the Liquidator for its beneficial liquidation for maximization of value to the stakeholders.
3. Since the operations are being carried on for beneficial liquidations, assets of Liquidation Estate being Trade Receivables & Cash Equivalents as on the Li...
The Corporate Debtor is undergoing liquidation proceeding in terms of the order of the Adjudicating Authority. The relevant details of the Corporate Insolvency Resolution Process are given hereunder: