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?...
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...
Liquidation filed with NCLT in July 2019. Till date NCLT has not passsed any order. No fee earned in the account during this intervening period. CIRP form 7 was filed in March 2021. Now when I try to file it again it charges me Rs.5900/- for delay of 10 months. I think this particular form and its monthly filing requirement for cases where status quo is there for more than 29 months should be considered. Filing CIRP form 7 every month does not serve any purpose in such cases except adding to ...
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....
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.
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.
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.
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...
Can members guide on the concept the following concepts in CIRP 8 Form
a) Insolvency Commencement should have been startted on
b) Potential Loss amount
IBBI/IIIP does not have any gudiance on the same.
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 ...
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 ...
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.
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.
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:
Liquidation Treatment of Liquidation account
Posted By : Reshma Mittal | 03-06-2021, 06:04 PM
After filing application for disolution of CD u/s 33(2), How to proceed with the CD Liquidation account maintained with the bank?
Avoidence application is pending, hence if all remaining amount is distributed to stakeholders and bank account is closed, how the future legal expenses shall be paid?
Records of CD are to be kept for 8 years, If Bank account is closed , how the payment to Storage service provider shall be made?
Views of experts please
Liquidation SALE OF ASSETS U/S 32 of LIQUIDATION REGULATIONS
Posted By : Reshma Mittal | 01-06-2021, 12:01 PM
Land of CD is in the name of its subsidiary company. CD holds 96% shares in it and rest are with the promoters. Land is major component of valuation. Buildin , Plant & Machineries are erected/installed on it. In such condition in which manner it would be more approperiate to sold the assets of CD under liquidation
CIRP Sec 7 application wrt Security Deposit default disputed by CD
Posted By : Manoj Kumar Anand | 01-06-2021, 08:55 AM
1. CD has given Rs 1.00 Crore as security deposit to a Company (Buyer) for rendering logistic services to them.
2. Consequently, Company (Buyer) didn’t make payment to CD alleging deficiency in service....
Liquidation LIQUIDATION FEES
Posted By : Abhay Narayan Manudhane | 31-05-2021, 08:57 PM
Regulation 4(2)(b) of IBBI (Liquidation Process) Regulations, 2016 prescribes liquidators fees in a table which specifies:
i) % age of fees payable on amount of realization
ii) %age of fees payable on amount distributed to stakeholders. (this is 50% of the fees payable on amount of realization)
Whilest there is no issue on this structure, Regulation 4(3) further specifies:
CIRP Invoking Corporate Guarantee
Posted By : RENUKA DEVI RANGASWAMY | 31-05-2021, 03:00 PM
Dear Learned Friends,
A FC is possessed with a Corporate Guarantee from the Holding company for the finance made to WoS Co( Borrower).
Now borrower not defaulted but the Corporate Guarantor went into CIRP.
Kindly guide :
1) Whether FC can invoke CG and file a claim before Corporate Guanator?
2) If not possible for the reason original borrower not defaluted, then next queires?
* If ...
Personal Guarantor to Corporate Debtor Reg-4- Eligibility of resolution professional (IBBI -Insolvency Resolution Process of PG to CD)Reg-2019
Posted By : RENUKA DEVI RANGASWAMY | 31-05-2021, 02:36 PM
Dear Learned Friends,
As per the above captioned title, whether RP of CD is eligible to be appointed as the RP for Personal Guarantor also.
By careful reading of the Reg-4 (1) (c) Explanation - c, which is reproduced here:
(c) has not acted or is not acting as interim resolution professional, resolution professional or liquidator in respect of the corporate debtor;
shall we interpret that,
Liquidation Liquidation as a Going Concern
Posted By : Darshan Bharatbhai Patel | 31-05-2021, 02:23 PM
My Query:- 1
Liquidation as a going concern - what is a yard stick ?
If a CD is not having any employee but has business presence and contacts to do profitable business but due to finanical distress it can not be revived undre CIRP - can it be revived at liquidation stage ?
My Query:- 2
Whether Income tax carried forward losses which are available as per IT act to the CD- will be available to a buyer in case of GCS ? Wh...
CIRP Land held in director and relative partnership firm and Building in Companies Name which is again mortgage to the Bank.
Posted By : Akhilkumar Amrutlal Thakkar | 31-05-2021, 02:10 PM
What will be alternates available to Resolve the Company likewise (Invocation of Personal Guarantees etc.). Can anyone guide all the alternates in detail....
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