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INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (LIQUIDATION
PROCESS) REGULATIONS, 20161
[AMENDED UPTO 24-04-2020]
IBBI/2016-17/GN/REG005.-In exercise of the powers conferred by sections 5, 33, 34, 35, 37,
38, 39, 40, 41, 43, 45, 49, 50, 51, 52, 54, 196 and 208 read with section 240 of the Insolvency
and Bankruptcy Code, 2016 (31 of 2016), the Board hereby makes the following Regulations,
namely-
CHAPTER I
PRELIMINARY
1.
Short title and commencement.
(1)
These Regulations may be called the Insolvency and Bankruptcy Board of India
(Liquidation Process) Regulations, 2016.
(2)
These Regulations shall come into force on the date of their publication in the Official
Gazette.
(3)
These Regulations shall apply to the liquidation process under Chapter III of Part II of
the Insolvency and Bankruptcy Code, 2016.
2.
Definitions.
(1)
In these Regulations, unless the context otherwise requires-
(a)
“books of the corporate debtor” means
(i)
the books of account and the financial statements as defined in section 2(13) and
2(40) of the Companies Act, 2013,
(ii)
the books of account as referred to in section 34 of the Limited Liability
Partnership Act, 2008, or
(iii) the books of accounts as specified under the applicable law,
as the case may be;
(b)
“Code” means the Insolvency and Bankruptcy Code, 2016;
1Vide Notification No. IBBI/2016-17/GN/REG005, dated 15th December 2016, published in the Gazette of
India, Extraordinary, Part III, Sec.4, dated 15th December, 2016 (w.e.f. 15.12.2016).
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2 [(ba) “consultation committee” means the stakeholders’ consultation committee
constituted under sub-regulation (1) of regulation 31A;]
(c)
“contributory” means a member of the company, a partner of the limited liability
partnership, and any other person liable to contribute towards the assets of the
corporate debtor in the event of its liquidation;
3[(ca) “Corporate Liquidation Account” means the Corporate Liquidation Account
operated and maintained by the Board under regulation 46;]
(d)
“electronic means” mean an authorized and secured computer programme which
is capable of producing confirmation of sending communication to the participant
entitled to receive such communication at the last electronic mail address provided
by such participant and keeping record of such communication;
(e)
“identification number” means the Limited Liability Partnership Identification
Number or the Corporate Identity Number, as the case may be;
4[(ea) “liquidation cost” under clause (16) of section 5 means-
(i) fee payable to the liquidator under regulation 4;
(ii) remuneration payable by the liquidator under sub-regulation (1) of regulation 7;
(iii) costs incurred by the liquidator under sub-regulation (2) of regulation 24;
(iv) costs incurred by the liquidator for preserving and protecting the assets,
properties, effects and actionable claims, including secured assets, of the corporate
debtor;
(v) costs incurred by the liquidator in carrying on the business of the corporate debtor
as a going concern;
(vi) interest on interim finance for a period of twelve months or for the period from
the liquidation commencement date till repayment of interim finance, whichever is
lower;
(vii) the amount repayable to contributories under sub-regulation (3) of regulation 2A;
(viii) any other cost incurred by the liquidator which is essential for completing the
liquidation process:
Provided that the cost, if any, incurred by the liquidator in relation to compromise or
arrangement under section 230 of the Companies Act, 2013 (18 of 2013), if any, shall
not form part of liquidation cost.]
2 Inserted by Notification No. IBBI/2019-20/GN/REG047, dated 25th July, 2019 (w.e.f. 25-07-2019).
3 Inserted by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020).
4 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-01-2019). Prior to
substitution it stood as under:
“(ea) “liquidation cost” under sub-section (16) of section 5 means-
(a) fee payable to the liquidator under regulation 4;
(b) remuneration payable by the liquidator under regulation 7;
(c) cost incurred by the liquidator under regulation 24; and
(d) interest on interim finance for a period of twelve months or for the period from the liquidation
commencement date till repayment of interim finance, whichever is lower;”
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(f)
“Preliminary Report” means the report prepared in accordance with Regulation 13;
(g)
“Progress Report” means the quarterly report prepared in accordance with
Regulation 15;
(h)
“registered valuer” means a person registered as such in accordance with the
Companies Act, 2013 (18 of 2013) and rules made thereunder;
(i)
“Schedule” means a schedule to these Regulations;
(j)
“section” means section of the Code; and
(k)
“stakeholders” means the stakeholders entitled to distribution of proceeds under
section 53.
(2)
Unless the context otherwise requires, words and expressions used and not defined in
these Regulations, but defined in the Code, shall have the meanings assigned to them
in the Code.
5[2A. Contributions to liquidation costs.
(1) Where the committee of creditors did not approve a plan under sub-regulations (3) of
regulation 39B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) Regulations, 2016, the liquidator shall call upon the financial
creditors, being financial institutions, to contribute the excess of the liquidation costs over the
liquid assets of the corporate debtor, as estimated by him, in proportion to the financial debts
owed to them by the corporate debtor.
Illustration
Assume that the excess of liquidation costs over liquid assets is Rs.10, as estimated by the
liquidator. Financial creditors will be called upon to contribute, as under:
Sl.
No.
Financial creditors
Amount of debt due to
financial creditors (Rs.)
Amount to be contributed
towards liquidation cost (Rs.)
(1)
(2)
(3)
(4)
1
Financial institution A
40
04
2
Financial institution B
60
06
3
Non-financial institution A
50
00
4
Non-financial institution B
50
00
Total
200
10
(2) The contributions made under the plan approved under sub-regulation (3) of regulation 39B
of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate
Persons) Regulations, 2016 or contributions made under sub-regulation (1), as the case may
be, shall be deposited in a designated escrow account to be opened and maintained in a
scheduled bank, within seven days of the passing of the liquidation order.
5 Ins. by Notification No. IBBI/2019-20/GN/REG047, dated 25th July, 2019 (w.e.f. 25-07-2019).
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(3) The amount contributed under sub-regulation (2) shall be repayable with interest at bank
rate referred to in section 49 of the Reserve Bank of India Act, 1934 (2 of 1934) as part of
liquidation cost.
2B. Compromise or arrangement.
(1) Where a compromise or arrangement is proposed under section 230 of the Companies Act,
2013 (18 of 2013), it shall be completed within ninety days of the order of liquidation under
sub-sections (1) and (4) of section 33.
6[ Provided that a person, who is not eligible under the Code to submit a resolution plan
for insolvency resolution of the corporate debtor, shall not be a party in any manner to such
compromise or arrangement.]
(2) The time taken on compromise or arrangement, not exceeding ninety days, shall not be
included in the liquidation period.
(3) Any cost incurred by the liquidator in relation to compromise or arrangement shall be borne
by the corporate debtor, where such compromise or arrangement is sanctioned by the Tribunal
under sub-section (6) of section 230:
Provided that such cost shall be borne by the parties who proposed compromise or
arrangement, where such compromise or arrangement is not sanctioned by the Tribunal under
sub-section (6) of section 230.]
CHAPTER II
APPOINTMENT AND REMUNERATION OF LIQUIDATOR
3.
Eligibility for appointment as liquidator.
(1)
An insolvency professional shall be eligible to be appointed as a liquidator if he, and
every partner or director of the insolvency professional entity of which he is a partner
or director, is independent of the corporate debtor.
Explanation– A person shall be considered independent of the corporate debtor, if he-
(a)
is eligible to be appointed as an independent director on the board of the corporate
debtor under section 149 of the Companies Act, 2013 (18 of 2013), where the
corporate debtor is a company;
(b)
is not a related party of the corporate debtor; or
(c)
has not been an employee or proprietor or a partner:
(i)
of a firm of auditors or 7[secretarial auditors] or cost auditors of the corporate
debtor; or
6 Ins. by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020).
7Substituted by Notification No. IBBI/ 2017-18/GN/REG028, dated 27th March, 2018 (w.e.f. 01-04-2018). Clause
3 (1) (c) (i), prior to substitution it stood as under –
“(i) of a firm of auditors or company secretaries or cost auditors of the corporate debtor; or”.
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(ii)
of a legal or a consulting firm, that has or had any transaction with the corporate
debtor contributing ten per cent or more of the gross turnover of such firm,
in the last three financial years.
(2)
A liquidator shall disclose the existence of any pecuniary or personal relationship with
the concerned corporate debtor or any of its stakeholders as soon as he becomes aware
of it, to the Board and the Adjudicating Authority.
(3)
An insolvency professional shall not continue as a liquidator if the insolvency
professional entity of which he is a director or partner, or any other partner or director
of such insolvency professional entity represents any other stakeholder in the same
liquidation process.
4.
8[Liquidator’s fee.
(1) The fee payable to the liquidator shall be in accordance with the decision taken by the
committee of creditors under regulation 39D of the Insolvency and Bankruptcy Board of
India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
(2) In cases other than those covered under sub-regulation (1), the liquidator shall be
entitled to a fee-
8Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-01-2019). Prior to substitution it
stood as under:
“4. Liquidator’s fee.
(1) The fee payable to the liquidator shall form part of the liquidation cost.
(2) The liquidator shall be entitled to such fee and in such manner as has been decided by the committee of creditors before a liquidation
order is passed under sections 33(1)(a) or 33(2).
(3) In all cases other than those covered under sub-regulation (2), the liquidator shall be entitled to a fee as a percentage of the amount
realized net of other liquidation costs, and of the amount distributed, as under:
Amount of Realisation / Distribution (In
rupees)
Percentage of fee on the amount realized / distributed
in the first six
months
in the next six
months
in the next one year
Thereafter
Amount of Realisation (exclusive of liquidation costs)
On the first 1 crore
5.00
3.75
2.50
1.88
On the next 9 crore
3.75
2.80
1.88
1.41
On the next 40 crore
2.50
1.88
1.25
0.94
On the next 50 crore
1.25
0.94
0.68
0.51
On further sums realized
0.25
0.19
0.13
0.10
Amount Distributed to Stakeholders
On the first 1 crore
2.50
1.88
1.25
0.94
On the next 9 crore
1.88
1.40
0.94
0.71
On the next 40 crore
1.25
0.94
0.63
0.47
On the next 50 crore
0.63
0.48
0.34
0.25
On further sums distributed
0.13
0.10
0.06
0.05
(4) The liquidator shall be entitled to receive half of the fee payable on realization under sub-regulation (3) only after such realized
amount is distributed.”
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(a) at the same rate as the resolution professional was entitled to during the corporate
insolvency resolution process, for the period of compromise or arrangement under section
230 of the Companies Act, 2013 (18 of 2013); and
(b) as a percentage of the amount realised net of other liquidation costs, and of the amount
distributed, for the balance period of liquidation, as under:
Amount of Realisation /
Distribution (In rupees)
Percentage of fee on the amount realised / distributed
in the first
six months
in the next six
months
thereafter
Amount of Realisation (exclusive of liquidation costs)
On the first 1 crore
5.00
3.75
1.88
On the next 9 crore
3.75
2.80
1.41
On the next 40 crore
2.50
1.88
0.94
On the next 50 crore
1.25
0.94
0.51
On further sums realized
0.25
0.19
0.10
Amount Distributed to Stakeholders
On the first 1 crore
2.50
1.88
0.94
On the next 9 crore
1.88
1.40
0.71
On the next 40 crore
1.25
0.94
0.47
On the next 50 crore
0.63
0.48
0.25
On further sums distributed
0.13
0.10
0.05
(3) Where the fee is payable under clause (b) of sub-regulation (2), the liquidator shall be
entitled to receive half of the fee payable on realisation only after such realised amount is
distributed.
Clarification: Regulation 4 of these regulations, as it stood before the commencement of the
Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations,
2019 shall continue to be applicable in relation to the liquidation processes already commenced
before the coming into force of the said amendment Regulations.]
CHAPTER III
POWERS AND FUNCTIONS OF LIQUIDATOR
5.
Reporting.
(1)
The liquidator shall prepare and submit:
(a)
a preliminary report;
(b)
an asset memorandum;
(c)
progress report(s);
(d)
sale report(s);
(e)
minutes of consultation with stakeholders; and
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(f)
the final report prior to dissolution
to the Adjudicating Authority in the manner specified under these Regulations.
(2)
The liquidator shall preserve a physical as well as an electronic copy of the reports and
minutes referred to in sub-regulation (1) for eight years after the dissolution of the
corporate debtor.
(3)
Subject to other provisions of these Regulations, the liquidator shall make the reports and
minutes referred to sub-regulation (1) available to a stakeholder in either electronic or
physical form, on receipt of
(a)
an application in writing;
(b)
costs of making such reports and minutes available to it; and
(c)
an undertaking from the stakeholder that it shall maintain confidentiality of such
reports and minutes and shall not use these to cause an undue gain or undue loss to
itself or any other person.
6.
Registers and books of account.
(1)
Where the books of account of the corporate debtor are incomplete on the liquidation
commencement date, the liquidator shall have them completed and brought up-to-date,
with all convenient speed, as soon as the order for liquidation is passed.
(2)
The liquidator shall maintain the following registers and books, as may be applicable,
in relation to the liquidation of the corporate debtor, and shall preserve them for a period
of eight years after the dissolution of the corporate debtor-
(a)
Cash Book;
(b)
Ledger;
(c)
Bank Ledger;
(d)
Register of Fixed Assets and Inventories;
(e)
Securities and Investment Register;
(f)
Register of Book Debts and Outstanding Debts;
(g)
Tenants Ledger;
(h)
Suits Register;
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(i)
Decree Register;
(j)
Register of Claims and Dividends;
(k)
Contributories Ledger;
(l)
Distributions Register;
(m)
Fee Register;
(n)
Suspense Register;
(o)
Documents Register;
(p)
Books Register;
(q)
9[Register of unclaimed dividends and undistributed proceeds; and]
(r)
such other books or registers as may be necessary to account for transactions
entered into by him in relation to the corporate debtor.
(3)
The registers and books under sub-regulation (2) may be maintained in the forms
indicated in Schedule III, with such modifications as the liquidator may deem fit in the
facts and circumstances of the liquidation process.
(4)
The liquidator shall keep receipts for all payments made or expenses incurred by him.
7.
Appointment of professionals.
(1)
A liquidator may appoint professionals to assist him in the discharge of his duties,
obligations and functions for a reasonable remuneration and such remuneration shall
form part of the liquidation cost.
(2)
The liquidator shall not appoint a professional under sub-regulation (1) who is his
relative, is a related party of the corporate debtor or has served as an auditor to the
corporate debtor in the five years preceding the liquidation commencement date.
(3)
A professional appointed or proposed to be appointed under sub-regulation (1) shall
disclose the existence of any pecuniary or personal relationship with any of the
stakeholders, or the concerned corporate debtor as soon as he becomes aware of it, to
the liquidator.
9 Subs by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020). Prior to
substitution it stood as under:
“Register of unclaimed dividends and undistributed properties deposited in accordance with Regulation 45;
and”.
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8.
Consultation with stakeholders.
(1)
The stakeholders consulted under section 35(2) shall extend all assistance and
cooperation to the liquidator to complete the liquidation of the corporate debtor.
(2)
The liquidator shall maintain the particulars of any consultation with the stakeholders
made under this Regulation, as specified in Form A of Schedule II.
9.
Personnel to extend cooperation to liquidator.
(1)
The liquidator may make an application to the Adjudicating Authority for a direction
that a person who-
(a)
is or has been an officer, auditor, employee, promoter or partner of the corporate
debtor;
(b)
was the interim resolution professional, resolution professional or the previous
liquidator of the corporate debtor; or
(c)
has possession of any of the properties of the corporate debtor;
shall cooperate with him in the collection of information necessary for the conduct of the
liquidation.
(2)
An application may be made under this Regulation only after the liquidator has made
reasonable efforts to obtain the information from such person and failed to obtain it.
10.
Disclaimer of onerous property.
(1)
Where any part of the property of a corporate debtor consists of-
(a)
land of any tenure, burdened with onerous covenants;
(b)
shares or stocks in companies;
(c)
any other property which is not saleable or is not readily saleable by reason of
the possessor thereof being bound either to the performance of any onerous act
or to the payment of any sum of money; or
(d)
unprofitable contracts;
the liquidator may, notwithstanding that he has endeavored to sell or has taken
possession of the property or exercised any act of ownership in relation thereto or done
anything in pursuance of the contract, make an application to the Adjudicating
Authority within six months from the liquidation commencement date, or such
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extended period as may be allowed by the Adjudicating Authority, to disclaim the
property or contract.
(2)
The liquidator shall not make an application under sub-regulation (1) if a person
interested in the property or contract inquired in writing whether he will make an
application to have such property disclaimed, and he did not communicate his intention
to do so within one month from receipt of such inquiry.
(3)
The liquidator shall serve a notice to persons interested in the onerous property or
contract at least seven days before making an application for disclaimer to the
Adjudicating Authority:
Explanation: A person is interested in the onerous property or contract if he-
(a)
is entitled to the benefit or subject to the burden of the contract; or
(b)
claims an interest in a disclaimed property or is under a liability not discharged in
respect of a disclaimed property.
(4)
Subject to the order of the Adjudicating Authority approving such disclaimer, the
disclaimer shall operate to determine, from the date of disclaimer, the rights, interest
and liabilities of the corporate debtor in or in respect of the property or contract
disclaimed, but shall not, except so far as is necessary for the purpose of releasing the
corporate debtor and the property of the corporate from liability, affect the rights,
interest or liabilities of any other person.
(5)
A person affected by the disclaimer under this Regulation shall be deemed to be a
creditor of the corporate debtor for the amount of the compensation or damages payable
in respect of such effect, and may accordingly be payable as a debt in liquidation under
section 53(1)(f).
11.
Extortionate credit transactions.
A transaction shall be considered an extortionate credit transaction under section 50(2) where
the terms-
(1)
require the corporate debtor to make exorbitant payments in respect of the credit
provided; or
(2)
are unconscionable under the principles of law relating to contracts.
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CHAPTER IV
GENERAL
12.
Public announcement by liquidator.
(1)
The liquidator shall make a public announcement in Form B of Schedule II within five
days from his appointment.
(2)
10[The public announcement shall-
(a) call upon stakeholders to submit their claims or update their claims submitted during
the corporate insolvency resolution process, as on the liquidation commencement date;
and
(b) provide the last date for submission or updation of claims, which shall be thirty days
from the liquidation commencement date.]
(3)
The announcement shall be published-
(a)
in one English and one regional language newspaper with wide circulation at the
location of the registered office and principal office, if any, of the corporate debtor
and any other location where in the opinion of the liquidator, the corporate debtor
conducts material business operations;
(b)
on the website, if any, of the corporate debtor; and
(c)
on the website, if any, designated by the Board for this purpose.
13.
Preliminary report.
The liquidator shall submit a Preliminary Report to the Adjudicating Authority within seventy-
five days from the liquidation commencement date, detailing-
(a)
the capital structure of the corporate debtor;
(b)
the estimates of its assets and liabilities as on the liquidation commencement date
based on the books of the corporate debtor:
10 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as under:
“(2) The public announcement shall-
(a) call upon stakeholders to submit their claims as on the liquidation commencement date; and
(b) provide the last date for submission of claim, which shall be thirty days from the liquidation
commencement date.”
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Provided that if the liquidator has reasons to believe, to be recorded in writing, that the books
of the corporate debtor are not reliable, he shall also provide such estimates based on reliable
records and data otherwise available to him;
(c)
whether, he intends to make any further inquiry in to any matter relating to the
promotion, formation or failure of the corporate debtor or the conduct of the
business thereof; and
(d)
the proposed plan of action for carrying out the liquidation, including the timeline
within which he proposes to carry it out and the estimated liquidation costs.
14.
Early dissolution.
Any time after the preparation of the Preliminary Report, if it appears to the liquidator that-
(a)
the realizable properties of the corporate debtor are insufficient to cover the cost
of the liquidation process; and
(b)
the affairs of the corporate debtor do not require any further investigation;
he may apply to the Adjudicating Authority for early dissolution of the corporate debtor and
for necessary directions in respect of such dissolution.
15.
Progress reports.
(1)
The liquidator shall submit Progress Reports to the Adjudicating Authority as under-
(a)
the first Progress Report within fifteen days after the end of the quarter in which
he is appointed;
(b)
subsequent Progress Report(s) within fifteen days after the end of every quarter
during which he acts as liquidator; and
Provided that if an insolvency professional ceases to act as a liquidator during the
liquidation process, he shall file a Progress Report for the quarter up to the date of his
so ceasing to act, within fifteen days of such cessation.
(2)
A Progress Report shall provide all information relevant to liquidation for the quarter,
including-
(a)
appointment, tenure of appointment and cessation of appointment of professionals;
(b)
a statement indicating progress in liquidation, including-
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(i) settlement of list of stakeholders,
(ii) details of any property that remain to be sold and realized,
(iii) distribution made to the stakeholders, and
(iv) distribution of unsold property made to the stakeholders;
(c)
details of fee or remuneration, including-
(i) the fee due to and received by the liquidator together with a description of the
activities carried out by him,
(ii) the remuneration or fee paid to professionals appointed by the liquidator
together with a description of activities carried out by them,
(iii) other expenses incurred by the liquidator, whether paid or not;
(d)
developments in any material litigation, by or against the corporate debtor;
(e)
filing of, and developments in applications for avoidance of transactions in
accordance with Chapter III of Part II of the Code; and
(f)
changes, if any, in estimated liquidation costs.
(3)
A Progress Report shall enclose an account maintained by the liquidator showing-
(a)
his receipts and payments during the quarter; and
(b)
the cumulative amount of his receipts and payments since the liquidation
commencement date.
(4)
A Progress Report shall enclose a statement indicating any material change in expected
realization of any property proposed to be sold, along with the basis for such change:
Provided that this statement shall not be accessible to any person during the course of
liquidation, unless permitted by the Adjudicating Authority.
(5)
The Progress Report for the fourth quarter of the financial year shall enclose audited
accounts of the liquidator’s receipts and payments for the financial year:
Provided that in case an insolvency professional ceases to act as liquidator, the audited
accounts of his receipts and payments for that part of the financial year during which he has
14
acted as liquidator, shall be enclosed with the Progress Report to be filed after cessation of his
appointment.
Illustration: An insolvency professional becomes a liquidator on 13th February, 2017, and
ceases to act as liquidator on 12th February, 2019. He shall submit Progress Reports as under:
Report No.
Period covered in the Quarter
Last Date of Submission of Report
1
13th February - 31st March, 2017
15th April, 2017
2
April - June, 2017
15th July, 2017
3
July - September, 2017
15th October, 2017
4
October - December, 2017
15th January, 2018
5
January - March, 2018
15th April, 2018
6
April - June, 2018
15th July, 2018
7
July - September, 2018
15th October, 2018
8
October - December, 2018
15th January, 2019
9
January - 12th February, 2019
27th February, 2019
He shall submit the audited accounts of his receipts and payments as under:
Audited Account No.
Period covered in the Year
Last Date of Submission
1
13th February - 31st March, 2017
15th April, 2017
2
April - March, 2018
15th April, 2018
3
April - 12th February, 2019
27th February, 2019
CHAPTER V
CLAIMS
16. 11[Submission of claim.
(1) A person, who claims to be a stakeholder, shall submit its claim, or update its claim
submitted during the corporate insolvency resolution process, including interest, if any, on or
before the last date mentioned in the public announcement.
(2) A person shall prove its claim for debt or dues to him, including interest, if any, as on the
liquidation commencement date.]
11 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-01-2019). Prior to
substitution it stood as under:
“16. Proof of claim.
A person, who claims to be a stakeholder, shall prove his claim for debt or dues to him, including interest, if any,
as on the liquidation commencement date.”
15
17.
Claims by operational creditors.
(1)
A person claiming to be an operational creditor of the corporate debtor, other than a
workman or employee, shall submit proof of claim to the liquidator in person, by post
or by electronic means in Form C of Schedule II.
(2)
The existence of debt due to an operational creditor under this Regulation may be
proved on the basis of-
(a)
the records available with an information utility, if any; or
(b)
other relevant documents which adequately establish the debt, including any or all
of the following -
(i)
a contract for the supply of goods and services with corporate debtor;
(ii)
an invoice demanding payment for the goods and services supplied to the
corporate debtor;
(iii) an order of a court or tribunal that has adjudicated upon the non-payment of a
debt, if any; and
(iv) financial accounts.
18.
Claims by financial creditors.
(1)
A person claiming to be a financial creditor of the corporate debtor shall submit proof
of claim to the liquidator in electronic means in Form D of Schedule II.
(2)
The existence of debt due to the financial creditor may be proved on the basis of-
(a)
the records available in an information utility, if any; or
(b)
other relevant documents which adequately establish the debt, including any or all
of the following-
(i)
a financial contract supported by financial statements as evidence of the debt;
(ii)
a record evidencing that the amounts committed by the financial creditor to the
corporate debtor under a facility has been drawn by the corporate debtor;
(iii) financial statements showing that the debt has not been repaid; and
16
(iv) an order of a court or tribunal that has adjudicated upon the non-payment of a
debt, if any.
19.
Claims by workmen and employees.
(1)
A person claiming to be a workman or an employee of the corporate debtor shall submit
proof of claim to the liquidator in person, by post or by electronic means in Form E of
Schedule II.
(2)
Where there are dues to numerous workmen or employees of the corporate debtor, an
authorized representative may submit one proof of claim for all such dues on their
behalf in Form F of Schedule II.
(3)
The existence of dues to workmen or employees may be proved by them, individually
or collectively, on the basis of-
(a)
records available in an information utility, if any; or
(b)
other relevant documents which adequately establish the dues, including any or all
of the following -
(i) a proof of employment such as contract of employment for the period for which
such workman or employee is claiming dues;
(ii) evidence of notice demanding payment of unpaid amount and any documentary
or other proof that payment has not been made; and
(iii) an order of a court or tribunal that has adjudicated upon the non-payment of
dues, if any.
(4)
The liquidator may admit the claims of a workman or an employee on the basis of the
books of account of the corporate debtor if such workman or employee has not made a
claim.
20.
Claims by other stakeholders.
(1)
A person, claiming to be a stakeholder other than those under Regulations 17(1), 18(1),
or 19(1), shall submit proof of claim to the liquidator in person, by post or by electronic
means in Form G of Schedule II.
(2)
The existence of the claim of the stakeholder may be proved on the basis of -
(a)
the records available in an information utility, if any, or
17
(b)
other relevant documents which adequately establish the claim, including any or
all of the following-
(i)
documentary evidence of notice demanding payment of unpaid amount or bank
statements of the claimant showing that the claim has not been paid and an
affidavit that the documentary evidence and bank statements are true, valid and
genuine;
(ii)
documentary or electronic evidence of his shareholding; and
(iii)
an order of a court, tribunal or other authority that has adjudicated upon the non-
payment of a claim, if any.
21.
Proving security interest.
The existence of a security interest may be proved by a secured creditor on the basis of-
(a)
the records available in an information utility, if any;
(b)
certificate of registration of charge issued by the Registrar of Companies; or
(c)
proof of registration of charge with the Central Registry of Securitisation Asset
Reconstruction and Security Interest of India.
12[21A. Presumption of security interest.
(1) A secured creditor shall inform the liquidator of its decision to relinquish its security
interest to the liquidation estate or realise its security interest, as the case may be, in Form
C or Form D of Schedule II:
Provided that, where a secured creditor does not intimate its decision within thirty days
from the liquidation commencement date, the assets covered under the security interest shall
be presumed to be part of the liquidation estate.
13[(2) Where a secured creditor proceeds to realise its security interest, it shall pay -
(a) as much towards the amount payable under clause (a) and sub-clause (i) of clause (b)
of sub-section (1) of section 53, as it would have shared in case it had relinquished the
12 Inserted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-01-2019).
13 Subs by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020). Prior to
substitution it stood as under:
“[(2) Where a secured creditor proceeds to realise its security interest, it shall pay as much towards the amount
payable under clause (a) and sub-clause (i) of clause (b) of sub-section (1) of section 53, as it would have shared
in case it had relinquished the security interest.]”
18
security interest, to the liquidator within ninety days from the liquidation commencement
date; and
(b) the excess of the realised value of the asset, which is subject to security interest, over
the amount of his claims admitted, to the liquidator within one hundred and eighty days
from the liquidation commencement date:
Provided that where the amount payable under this sub-regulation is not certain by
the date the amount is payable under this sub-regulation, the secured creditor shall pay
the amount, as estimated by the liquidator:
Provided further that any difference between the amount payable under this sub-
regulation and the amount paid under the first proviso shall be made good by the secured
creditor or the liquidator, as the case may be, as soon as the amount payable under this
sub-regulation is certain and so informed by the liquidator.
(3) Where a secured creditor fails to comply with sub-regulation (2), the asset, which is subject
to security interest, shall become part of the liquidation estate.
22.
Production of bills of exchange and promissory notes.
Where a person seeks to prove a debt in respect of a bill of exchange, promissory note or other
negotiable instrument or security of a like nature for which the corporate debtor is liable, such
bill of exchange, note, instrument or security, as the case may be, shall be produced before the
liquidator before the claim is admitted.
23.
Substantiation of claims.
The liquidator may call for such other evidence or clarification as he deems fit from a claimant
for substantiating the whole or part of its claim.
24.
Cost of proof.
(1)
A claimant shall bear the cost of proving its claim.
(2)
Costs incurred by the liquidator for verification and determination of a claim shall form
part of liquidation cost:
Provided that if a claim or part of the claim is found to be false, the liquidator shall endeavor
to recover the costs incurred for verification and determination of claim from such claimant,
and shall provide the details of the claimant to the Board.
19
25.
Determination of quantum of claim.
Where the amount claimed by a claimant is not precise due to any contingency or any other
reason, the liquidator shall make the best estimate of the amount of the claim based on the
information available with him.
26.
Debt in foreign currency.
The claims denominated in foreign currency shall be valued in Indian currency at the official
exchange rate as on the liquidation commencement date.
Explanation- “The official exchange rate” is the reference rate published by the Reserve Bank
of India or derived from such reference rates.
27.
Periodical payments.
In the case of rent, interest and such other payments of a periodical nature, a person may claim
only for any amounts due and unpaid up to the liquidation commencement date.
28.
Debt payable at future time.
(1)
A person may prove for a claim whose payment was not yet due on the liquidation
commencement date and is entitled to distribution in the same manner as any other
stakeholder.
(2)
Subject to any contract to the contrary, where a stakeholder has proved for a claim
under sub-regulation (1), and the debt has not fallen due before distribution, he is
entitled to distribution of the admitted claim reduced as follows-
X/ (1+r)n
where–
(a)
“X” is the value of the admitted claim;
(b)
“r” is the closing yield rate (%) of government securities of the maturity of “n” on
the date of distribution as published by the Reserve Bank of India; and
(c)
“n” is the period beginning with the date of distribution and ending with the date
on which the payment of the debt would otherwise be due, expressed in years and
months in a decimalized form.
20
29.
Mutual credits and set-off.
Where there are mutual dealings between the corporate debtor and another party, the sums due
from one party shall be set off against the sums due from the other to arrive at the net amount
payable to the corporate debtor or to the other party.
Illustration: X owes Rs. 100 to the corporate debtor. The corporate debtor owes Rs. 70 to X.
After set off, Rs. 30 is payable by X to the corporate debtor.
30.
Verification of claims
The liquidator shall verify the claims submitted within thirty days from the last date for receipt
of claims and may either admit or reject the claim, in whole or in part, as the case may be.
31.
List of stakeholders.
(1)
The liquidator shall prepare a list of stakeholders, category-wise, on the basis of proofs
of claims submitted and accepted under these Regulations, with-
(a)
the amounts of claim admitted, if applicable,
(b)
the extent to which the debts or dues are secured or unsecured, if applicable,
(c)
the details of the stakeholders, and
(d)
the proofs admitted or rejected in part, and the proofs wholly rejected.
(2)
The liquidator shall file the list of stakeholders with the Adjudicating Authority within
forty-five days from the last date for receipt of claims, and the filing of the list shall be
announced to the public in the manner specified in Regulation 12(3).
(3)
The liquidator may apply to the Adjudicating Authority to modify an entry in the list of
stakeholders filed with the Adjudicating Authority, when he comes across additional
information warranting such modification, and shall modify the entry in the manner
directed by the Adjudicating Authority.
(4)
The liquidator shall modify an entry in the list of stakeholders filed with the
Adjudicating Authority, in the manner directed by the Adjudicating Authority while
disposing off an appeal preferred under section 42.
(5)
The list of stakeholders, as modified from time to time, shall be-
(a)
available for inspection by the persons who submitted proofs of claim;
21
(b)
available for inspection by members, partners, directors and guarantors of the
corporate debtor;
(c)
displayed on the website, if any, of the corporate debtor.
14[31A. Stakeholders’ consultation committee.
(1) The liquidator shall constitute a consultation committee within sixty days from the
liquidation commencement date, based on the list of stakeholders prepared under regulation
31, to advise him on the matters relating to sale under regulation 32.
(2) The composition of the consultation committee under sub-regulation (1) shall be as shown
in the Table below:
Table
Class of Stakeholders
Description
Number of
Representatives
(1)
(2)
(3)
Secured
financial
creditors,
who
have
relinquished
their
security interests under
section 52
Where claims of such creditors admitted
during the liquidation process is less than
50% of liquidation value
Number of creditors in
the category, subject to
a maximum of 2
Where claims of such creditors admitted
during the liquidation process is at least
50% of liquidation value
Number of creditors in
the category, subject to
a maximum of 4
Unsecured
financial
creditors
Where claims of such creditors admitted
during the liquidation process is less than
25% of liquidation value
Number of creditors in
the category, subject to
a maximum of 1
Where claims of such creditors admitted
during the liquidation process is at least
25% of liquidation value
Number of creditors in
the category, subject to
a maximum of 2
Workmen
and
employees
1
1
Governments
1
1
Operational
creditors
other than Workmen,
employees
and
Governments
Where claims of such creditors admitted
during the liquidation process is less than
25% of liquidation value
Number of creditors in
the category, subject to
a maximum of 1
Where claims of such creditors admitted
during the liquidation process is at least
25% of liquidation value
Number of creditors in
the category, subject to
a maximum of 2
Shareholders
or
partners, if any
1
(3) The liquidator may facilitate the stakeholders of each class to nominate their representatives
for inclusion in the consultation committee.
14 Ins. by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).
22
(4) If the stakeholders of any class fail to nominate their representatives, the required number
of stakeholders with the highest claim amount in that class shall be included in the consultation
committee.
(5) Subject to the provisions of the Code and these regulations, representatives in the
consultation committee shall have access to all relevant records and information as may be
required to provide advice to the liquidator under sub-regulation (1).
(6) The liquidator shall convene a meeting of the consultation committee when he considers it
necessary and shall convene a meeting of the consultation committee when a request is received
from at least fifty-one percent of representatives in the consultation committee.
(7) The liquidator shall chair the meetings of consultation committee and record deliberations
of the meeting.
(8) The liquidator shall place the recommendation of committee of creditors made under sub-
regulation (1) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency
Resolution Process for Corporate Persons) Regulations, 2016, before the consultation
committee for its information.
(9) The consultation committee shall advise the liquidator, by a vote of not less than sixty-six
percent of the representatives of the consultation committee, present and voting.
(10) The advice of the consultation committee shall not be binding on the liquidator:
Provided that where the liquidator takes a decision different from the advice given by the
consultation committee, he shall record the reasons for the same in writing.]
CHAPTER VI
REALISATION OF ASSETS
32.
15[Sale of Assets, etc.
The liquidator may sell-
(a) an asset on a standalone basis;
(b) the assets in a slump sale;
(c) a set of assets collectively;
15 Substituted by Notification No. IBBI/2018-19/GN/REG037, dated 22nd October, 2018 (w.e.f. 22-10-2018).
Regulation 32, prior to substitution it stood as under:
“[32. Manner of sale.
The liquidator may
(a)
sell an asset on a standalone basis; or
(b)
sell
(i)
the assets in a slump sale,
(ii)
a set of assets collectively, or
15[(iii) the assets in parcels; or;]
15[(c) sell the corporate debtor as a going concern.]”
23
(d) the assets in parcels;
(e) the corporate debtor as a going concern; or
(f) the business(s) of the corporate debtor as a going concern:
Provided that where an asset is subject to security interest, it shall not be sold
under any of the clauses (a) to (f) unless the security interest therein has been
relinquished to the liquidation estate.]
16[32A. Sale as a going concern.
(1) Where the committee of creditors has recommended sale under clause (e) or (f) of regulation
32 or where the liquidator is of the opinion that sale under clause (e) or (f) of regulation 32
shall maximise the value of the corporate debtor, he shall endeavour to first sell under the said
clauses.
(2) For the purpose of sale under sub-regulation (1), the group of assets and liabilities of the
corporate debtor, as identified by the committee of creditors under sub-regulation (2) of
regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) Regulations, 2016 shall be sold as a going concern.
(3) Where the committee of creditors has not identified the assets and liabilities under sub-
regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency
Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall identify and
group the assets and liabilities to be sold as a going concern, in consultation with the
consultation committee.
(4) If the liquidator is unable to sell the corporate debtor or its business under clause (e) or (f)
of regulation 32 within ninety days from the liquidation commencement date, he shall proceed
to sell the assets of the corporate debtor under clauses (a) to (d) of regulation 32.]
33.
Mode of sale.
(1)
The liquidator shall ordinarily sell the assets of the corporate debtor through an auction
in the manner specified in Schedule I.
16 Ins. by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).
24
(2)
The liquidator may sell the assets of the corporate debtor by means of private sale in
the manner specified in Schedule I when-
(a)
the asset is perishable;
(b)
the asset is likely to deteriorate in value significantly if not sold immediately;
(c)
the asset is sold at a price higher than the reserve price of a failed auction; or
(d)
the prior permission of the Adjudicating Authority has been obtained for such sale:
Provided that the liquidator shall not sell the assets, without prior permission of the
Adjudicating Authority, by way of private sale to-
(a)
a related party of the corporate debtor;
(b)
his related party; or
(c)
any professional appointed by him.
(3)
The liquidator shall not proceed with the sale of an asset if he has reason to believe that
there is any collusion between the buyers, or the corporate debtor’s related parties and
buyers, or the creditors and the buyer, and shall submit a report to the Adjudicating
Authority in this regard, seeking appropriate orders against the colluding parties.
34.
Asset memorandum.
(1)
On forming the liquidation estate under section 36, the liquidator shall prepare an asset
memorandum in accordance with this Regulation within seventy-five days from the
liquidation commencement date.
(2)
The asset memorandum shall provide the following details in respect of the assets
which are intended to be realized by way of sale-
(a)value of the asset, valued in accordance with Regulation 35;
17[(b) value of the assets or business(s) under clauses (b) to (f) of regulation 32, valued
in accordance with regulation 35, if intended to be sold under those clauses;]
(c) intended manner of sale in accordance with Regulation 32, and reasons for the same;
17 Substituted by Notification No. IBBI/2018-19/GN/REG037, dated 22nd October, 2018 (w.e.f. 22-10-2018).
Clause (b), prior to substitution it stood as under:
“(b) value of set of assets or assets in parcels or assets in a slump sale, as the case may be, valued in accordance
with Regulation 35, if intended to be sold as specified in Regulation 32(b);”
25
(d) the intended mode of sale and reasons for the same in accordance with Regulation
33;
(e) expected amount of realization from sale; and
(f) any other information that may be relevant for the sale of the asset.
(3)
The asset memorandum shall provide the following details in respect of each of the
assets other than those referred to in sub-regulation (2)-
(a)
value of the asset;
(b)
intended manner and mode of realization, and reasons for the same;
(c)
expected amount of realization; and
(d)
any other information that may be relevant for the realization of the asset.
(4)
The liquidator shall file the asset memorandum along with the preliminary report to the
Adjudicating Authority.
(5)
The asset memorandum shall not be accessible to any person during the course of
liquidation, unless permitted by the Adjudicating Authority.
35.
18[Valuation of assets intended to be sold.
(1)Where the valuation has been conducted under regulation 35 of the Insolvency and
Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 or regulation 34 of the Insolvency and Bankruptcy Board of India
(Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017,
as the case may be, the liquidator shall consider the average of the estimates of the
18 Substituted by Notification No. IBBI/2018-19/GN/REG037, dated 22nd October, 2018 (w.e.f. 22-10-2018).
Regulation 35, prior to substitution it stood as under:
“35. Valuation of assets intended to be sold.
(1) The liquidator shall appoint at least two registered valuers to value the assets as required under Regulation
34(2).
(2) The provisions of Regulation 7 shall apply mutatis mutandis to registered valuers appointed under sub-
regulation (1).
(3) The registered valuers appointed under sub-regulation (1) shall independently submit to the liquidator the
estimates of the realizable value of the asset(s) computed in accordance with internationally accepted
valuation standards, after physical verification of the assets of the corporate debtor.
(4) The average of the estimates received under sub-regulation (3) shall be considered the value of the assets.”
26
values arrived under those provisions for the purposes of valuations under these
regulations.
(2) 19[In cases not covered under sub-regulation (1) or where the liquidator is of the
opinion that fresh valuation is required under the circumstances, he shall within seven
days] of the liquidation commencement date, appoint two registered valuers to
determine the realisable value of the assets or businesses under clauses (a) to (f) of
regulation 32 of the corporate debtor:
Provided that the following persons shall not be appointed as registered valuers,
namely: -
(a) a relative of the liquidator;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor at any time during the five years preceding the
insolvency commencement date; or
(d) a partner or director of the insolvency professional entity of which the liquidator
is a partner or director.
(3) The Registered Valuers appointed under sub-regulation (2) shall independently
submit to the liquidator the estimates of realisable value of the assets or businesses, as
the case may be, computed in accordance with the Companies (Registered Valuers and
Valuation) Rules, 2017, after physical verification of the assets of the corporate debtor.
(4) The average of two estimates received under sub-regulation (3) shall be taken as the
value of the assets or businesses.]
36.
Asset sale report.
On sale of an asset, the liquidator shall prepare an asset sale report in respect of said asset, to
be enclosed with the Progress Reports, containing -
(a)
the realized value;
19 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as under:
“In cases not covered under sub-regulation (1), the liquidator shall within seven days”.
27
(b)
cost of realization, if any;
(c)
the manner and mode of sale;
(d)
if the value realized is less than the value in the asset memorandum, the reasons
for the same;
(e)
the person to whom the sale is made; and
(f)
any other details of the sale.
37.
Realization of security interest by secured creditor
(1)
A secured creditor who seeks to realize its security interest under section 52 shall
intimate the liquidator of the price at which he proposes to realize its secured asset.
(2)
The liquidator shall inform the secured creditor within twenty one days of receipt of
the intimation under sub-regulation (1) if a person is willing to buy the secured asset
before the expiry of thirty days from the date of intimation under sub-regulation (1), at
a price higher than the price intimated under sub-regulation (1).
(3)
Where the liquidator informs the secured creditor of a person willing to buy the secured
asset under sub-regulation (2), the secured creditor shall sell the asset to such person.
(4)
If the liquidator does not inform the secured creditor in accordance with sub-regulation
(2), or the person does not buy the secured asset in accordance with sub-regulation (2),
the secured creditor may realize the secured asset in the manner it deems fit, but at least
at the price intimated under sub-regulation (1).
(5)
Where the secured asset is realized under sub-regulation (3), the secured creditor shall
bear the cost of identification of the buyer under sub-regulation (2).
(6)
Where the secured asset is realized under sub-regulation (4), the liquidator shall bear
the cost of incurred to identify the buyer under sub-regulation (2).
(7)
The provisions of this Regulation shall not apply if the secured creditor enforces his
security interest under the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (54 of 2002) or the Recovery of Debts and
Bankruptcy Act, 1993 (51 of 1993).
28
20[(8) A secured creditor shall not sell or transfer an asset, which is subject to security interest,
to any person, who is not eligible under the Code to submit a resolution plan for insolvency
resolution of the corporate debtor.]
38.
Distribution of unsold assets.
(1)
The liquidator may, with the permission of the Adjudicating Authority, distribute
amongst the stakeholders, an asset that cannot be readily or advantageously sold due to
its peculiar nature or other special circumstances.
(2)
The application seeking permission of the Adjudicating Authority under sub-regulation
(1) shall-
(a)
identify the asset;
(b)
provide a value of the asset;
(c)
detail the efforts made to sell the asset, if any; and
(d)
provide reasons for such distribution.
39.
Recovery of monies due.
The liquidator shall endeavor to recover and realize all assets of and dues to the corporate
debtor in a time-bound manner for maximization of value for the stakeholders.
40.
Liquidator to realize uncalled capital or unpaid capital contribution.
(1)
The liquidator shall realize any amount due from any contributory to the corporate
debtor.
(2)
Notwithstanding any charge or encumbrance on the uncalled capital of the corporate
debtor, the liquidator shall be entitled to call and realize the uncalled capital of the
corporate debtor and to collect the arrears, if any, due on calls made prior to the
liquidation, by providing a notice to the contributory to make the payments within
fifteen days from the receipt of the notice, but shall hold all moneys so realized subject
to the rights, if any, of the holder of any such charge or encumbrance.
(3)
No distribution shall be made to a contributory, unless he makes his contribution to the
uncalled or unpaid capital as required in the constitutional documents of the corporate
debtor.
20 Ins. by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020).
29
Explanation: For the purpose of this chapter and Schedule I, ‘assets’ include an asset, all assets,
a set of assets or parcel of assets 21[, business], as the case may be, which are being sold.
CHAPTER VII
PROCEEDS OF LIQUIDATION AND DISTRIBUTION OF PROCEEDS
41.
All money to be paid in to bank account.
(1)
The liquidator shall open a bank account in the name of the corporate debtor followed
by the words ‘in liquidation’, in a scheduled bank, for the receipt of all moneys due to
the corporate debtor.
(2)
The liquidator shall deposit in the bank account opened under sub-regulation (1) all
moneys, including cheques and demand drafts received by him as the liquidator of the
corporate debtor, and the realizations of each day shall be deposited into the bank
account without any deduction not later than the next working day.
(3)
The liquidator may maintain a cash of one lakh rupees or such higher amount as may
be permitted by the Adjudicating Authority to meet liquidation costs.
(4)
All payments out of the account by the liquidator above five thousand rupees shall be
made by cheques drawn or online banking transactions against the bank account.
42.
Distribution.
(1)
Subject to the provisions of section 53, the liquidator shall not commence distribution
before the list of stakeholders and the asset memorandum has been filed with the
Adjudicating Authority.
(2)
The liquidator shall distribute the proceeds from realization within 22[ninety days]
from the receipt of the amount to the stakeholders.
(3)
The insolvency resolution process costs, if any, and the liquidation costs shall be
deducted before such distribution is made.
43.
Return of money.
A stakeholder shall forthwith return any monies received by him in distribution, which
he was not entitled to at the time of distribution, or subsequently became not entitled to.
21 Ins. by Notification No. IBBI/2018-19/GN/REG037, dated 22nd October, 2018 (w.e.f. 22-10-2018).
22 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as: “six months”.
30
44.
Completion of liquidation.
(1)
23[The liquidator shall liquidate the corporate debtor within a period of one year from
the liquidation commencement date, notwithstanding pendency of any application for
avoidance of transactions under Chapter III of Part II of the Code, before the
Adjudicating Authority or any action thereof:
Provided that where the sale is attempted under sub-regulation (1) of regulation 32A,
the liquidation process may take an additional period up to ninety days.]
(2)
If the liquidator fails to liquidate the corporate debtor within 24[one year], he shall
make an application to the Adjudicating Authority to continue such liquidation, along
with a report explaining why the liquidation has not been completed and specifying the
additional time that shall be required for liquidation.
45.
Final report prior to dissolution.
(1)
When the corporate debtor is liquidated, the liquidator shall make an account of the
liquidation, showing how it has been conducted and how the corporate debtor’s assets
have been liquidated.
(2)
If the liquidation cost exceeds the estimated liquidation cost provided in the
Preliminary Report, the liquidator shall explain the reasons for the same.
(3) 25[The liquidator shall submit an application along with the final report and the compliance
certificate in form H to the Adjudicating Authority for –
(a) closure of the liquidation process of the corporate debtor where the corporate
debtor is sold as a going concern; or
(b) for the dissolution of the corporate debtor, in cases not covered under clause (a).]
23 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as under:
“The liquidator shall liquidate the corporate debtor within a period of two years.”.
24 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as: “two years”.
25 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as under:
“The final report shall form part of the application for the dissolution of the corporate debtor to the Adjudicating
Authority to be made under section 54.”
31
26[46. Corporate Liquidation Account.
(1) The Board shall operate and maintain an Account to be called the Corporate Liquidation
Account in the Public Accounts of India:
Provided that until the Corporate Liquidation Account is operated as part of the Public
Accounts of India, the Board shall open a separate bank account with a scheduled bank for the
purposes of this regulation.
(2) A liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed
proceeds, if any, in a liquidation process along with any income earned thereon till the date of
deposit into the Corporate Liquidation Account before he submits an application under sub-
regulation (3) of regulation 45.
(3) A liquidator, who holds any amount of unclaimed dividends or undistributed proceeds in a
liquidation process on the date of commencement of the Insolvency and Bankruptcy Board of
India (Liquidation Process) (Amendment) Regulations, 2020, shall deposit the same within
fifteen days of the date of such commencement, along with any income earned thereon till the
date of deposit.
(4) A liquidator, who fails to deposit any amount into the Corporate Liquidation Account under
this regulation, shall deposit the same along with interest thereon at the rate of twelve percent
per annum from the due date of deposit till the date of deposit.
(5) A liquidator shall submit to the authority with which the corporate debtor is registered and
the Board, the evidence of deposit of the amount into the Corporate Liquidation Account under
this regulation, and a statement in Form-I setting forth the nature of the amount deposited into
the Corporate Liquidation Account, and the names and last known addresses of the
stakeholders entitled to receive the unclaimed dividends or undistributed proceeds.
(6) The liquidator shall be entitled to a receipt from the Board for any amount deposited into
the Corporate Liquidation Account under this regulation.
(7) A stakeholder, who claims to be entitled to any amount deposited into the Corporate
Liquidation Account, may apply to the Board in Form J for an order for withdrawal of the
amount:
Provided that if any other person other than the stakeholder claims to be entitled to any
amount deposited into the Corporate Liquidation Account, he shall submit evidence to satisfy
the Board that he is so entitled.
26 Substituted by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020). Prior to
substitution it stood as under:
“46. Unclaimed proceeds of liquidation or undistributed assets.
(1)
Before the order of dissolution is passed under section 54(2), the liquidator shall apply to the Adjudicating Authority for an order to pay
into the Companies Liquidation Account in the Public Account of India any unclaimed proceeds of liquidation or undistributed assets
or any other balance payable to the stakeholders in his hands on the date of the order of dissolution.
(2)
Any liquidator who retains any money which should have been paid by him into the Companies Liquidation Account under this
Regulation shall pay interest on the amount retained at the rate of twelve per cent per annum, and also pay such penalty as may be
determined by the Board.
(3)
The liquidator shall, when making any payment referred to in sub-regulation (1), furnish to the authority with which the corporate debtor
is registered, and the Board, a statement setting forth the nature of the sums included, the names and last known addresses of the
stakeholders entitled to participate therein, the amount to which each is entitled to and the nature of their claim.
(4)
The liquidator shall be entitled to a receipt from the Reserve Bank of India for any money paid to it under sub-regulation (2), and such
receipt shall be an effectual discharge of the liquidator in respect thereof.
(5)
A person claiming to be entitled to any money paid into the Companies Liquidation Account may apply to the Board for an order for
payment of the money claimed; which may, if satisfied that such person is entitled to the whole or any part of the money claimed, make
an order for the payment to that person of the sum due to him, after taking such security from him as it may think fit.
(6)
Any money paid into the Companies Liquidation Account in pursuance of this Regulation, which remains unclaimed thereafter for a
period of fifteen years, shall be transferred to the general revenue account of the Central Government.”
32
(8) The Board may, if satisfied that the stakeholder or any other person referred to under sub-
regulation (7) is entitled to withdrawal of any amount from the Corporate Liquidation Account,
make an order for the same in favour of that stakeholder or that other person.
(9) The Board shall maintain a corporate debtor-wise ledger of the amount deposited into and
the amount withdrawn from the Corporate Liquidation Account under this regulation.
(10) The Board shall nominate an officer of the level of Executive Director of the Board as the
custodian of the Corporate Liquidation Account and no proceeds shall be withdrawn without
his approval.
(11) The Board shall maintain proper accounts of the Corporate Liquidation Account and get
the same audited annually.
(12) The audit report along with the statement of accounts of the Corporate Liquidation
Account referred to in sub-regulation (11) shall be placed before the Governing Board and shall
be forwarded to the Central Government.
(13) Any amount deposited into the Corporate Liquidation Account in pursuance of this
regulation, which remains unclaimed or undistributed for a period of fifteen years from the
date of order of dissolution of the corporate debtor and any amount of income or interest
received or earned in the Corporate Liquidation Account shall be transferred to the
Consolidated Fund of India.]
47. 27[Model time-line for liquidation process.
The following Table presents a model timeline of liquidation process of a corporate debtor
from the liquidation commencement date, assuming that the process does not include
compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013)
or sale under regulation 32A:
Model Timeline for Liquidation Process
Sl.
No.
Section /
Regulation
Description of Task
Norm
Latest
Timeline
(Days)
(1)
(2)
(3)
(4)
(5)
1
Section 33 and
34
Commencement
of
liquidation
and
appointment of liquidator
LCD
0 = T
2
Section 33 (1)
(b)
(ii)
/
Reg. 12 (1, 2, 3)
Public announcement in Form B Within 5 days of appointment of
liquidator.
T + 5
3
Reg. 35 (2)
Appointment of registered valuers
Within 7 days of LCD
T + 7
4
Section 38 (1)
and (5), Reg. 17,
18 and 21A
Submission of claims;
Within 30 days of LCD
T + 30
Intimation of decision on relinquishment of
security interest
5
Section 38 (5)
Withdrawal/ modification of claim Within 14 days of submission of
claim
T + 44
6
Reg. 30
Verification of claims received under
regulation 12(2)(b)
Within 30 days from the last date
for receipt of claims
T + 60
7
Reg. 31A
Constitution of SCC
Within 60 days of LCD
T + 60
8
Section 40 (2)
Intimation about decision of acceptance/
rejection of claim
Within 7 days of admission or
rejection of claim
T + 67
27Ins.by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).
33
9
Reg. 31 (2)
Filing
the
list
of
stakeholders
and
announcement to public
Within 45 days from the last date of
receipt of claims
T + 75
10
Section 42
Appeal by a creditor against the decision of
the liquidator
Within 14 days of receipt of such
decision
T + 81
11
Reg. 13
Preliminary report to the AA Within 75 days of LCD
T + 75
12
Reg. 34
Asset memorandum
Within 75 days of LCD
T + 75
13
Reg. 15 (1), (2),
(3), (4) and (5),
and 36
Submission of progress reports to AA;
Asset Sale report to be enclosed with every
Progress Report, if sales are made
First progress report
Q1 + 15
Q-2
Q2 + 15
Q-3
Q3 + 15
Q-4
Q4 + 15
FY:
1
Audited
accounts
of
liquidator's receipt & payments for
the financial year
15th April
14
Proviso to Reg.
15 (1)
Progress report in case of cessation of
liquidator
Within 15 days of cessation as
liquidator
Date of
cessation
+ 15
15
Reg. 37 (2, 3)
Information to secured creditors
Within 21 days of receipt of
intimation from secured creditor
Date of
intimation
+ 21
16
Reg. 42 (2)
Distribution
of
the
proceeds
to
the
stakeholders
Within 3 months from the receipt of
amount
Date of
Realisation
+ 90
17
Reg.10 (1)
Application to AA for Disclaimer of onerous
property
Within 6 months from the LCD
T + 6
months
18
Reg.10 (3)
Notice to persons interested in the onerous
property or contract
At least 7 days before making an
application to AA for disclosure.
19
Reg. 44
Liquidation of corporate debtor.
Within one year
T + 365
20
28[Reg. 46
Deposit the amount of unclaimed dividends
and undistributed proceeds
Before submission of application
under
sub-regulation
(3)
of
regulation 45
21
Sch-1 Sl. No 12
Time period to H1 bidder to provide balance
sale consideration
Within 90 days of the date of
invitation to provide the balance
amount.]
[AA: Adjudicating Authority, LCD: Liquidation Commencement Date, SCC: Stakeholders’ Consultation Committee]
29[Exclusion of period of lockdown.
47A. Subject to the provisions of the Code, the period of lockdown imposed by the Central
Government in the wake of Covid-19 outbreak shall not be counted for the purposes of
computation of the time-line for any task that could not be completed due to such lockdown,
in relation to any liquidation process.]
SCHEDULE I
MODE OF SALE
(Under Regulation 33 of the Insolvency and Bankruptcy Board of India (Liquidation Process)
Regulations, 2016)
28 Substituted by Notification No. IBBI/2019-20/GN/REG053 dated 6th January, 2020 (w.e.f. 06-01-2020). Prior to
substitution it stood as under:
“20
[Reg. 46
Apply to AA for order on unclaimed proceeds of
liquidation or undistributed assets.
Before dissolution order”
29 Inserted by Notification No. IBBI/2020-21/GN/REG060, dated 20th April, 2020 (w.e.f. 17.4.2020).
34
1.
AUCTION
(1)
Where an asset is to be sold through auction, a liquidator shall do so the in the manner
specified herein.
(2)
The liquidator shall prepare a marketing strategy, with the help of marketing
professionals, if required, for sale of the asset. The strategy may include-
(a)
releasing advertisements;
(b)
preparing information sheets for the asset;
(c)
preparing a notice of sale; and
(d)
liaising with agents.
(3)
The liquidator shall prepare terms and conditions of sale, including reserve price,
earnest money deposit as well as pre-bid qualifications, if any.
(4) 30[The reserve price shall be the value of the asset arrived at in accordance with regulation
35.
(4A) Where an auction fails at the reserve price, the liquidator may reduce the reserve price by
up to twenty-five percent of such value to conduct subsequent auction.
(4B) Where an auction fails at reduced price under clause (4A), the reserve price in subsequent
auctions may be further reduced by not more than ten percent at a time.]
(5)
The liquidator shall make a public announcement of an auction in the manner specified
in Regulation 12(3);
Provided that the liquidator may apply to Adjudicating Authority to dispense with the
requirement of Regulation 12(3)(a) keeping in view the value of the asset intended to
be sold by auction.
(6)
The liquidator shall provide all assistance necessary for the conduct of due diligence
by interested buyers.
30 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as under:
“The reserve price shall be the value of the asset arrived at in accordance with Regulation 34. Such valuation shall
not be more than six months old. However, in the event that an auction fails at such price, the liquidator may
reduce the reserve price up to seventy-five per cent of such value to conduct subsequent auctions.”
35
(7)
The liquidator shall sell the assets through an electronic auction on an online portal, if
any, designated by the Board, where the interested buyers can register, bid and receive
confirmation of the acceptance of their bid online.
(8)
If the liquidator is of the opinion that a physical auction is likely to maximize the
realization from the sale of assets and is in the best interests of the creditors, he may
sell assets through a physical auction after obtaining the permission of the Adjudicating
Authority. The liquidator may engage the services of qualified professional auctioneers
specializing in auctioning such assets for this purpose.
(9)
An auction shall be transparent, and the highest bid at any given point shall be visible
to the other bidders.
(10)
If the liquidator is of the opinion that an auction where bid amounts are not visible is
likely to maximize realizations from the sale of assets and is in the best interests of the
creditors, he may apply, in writing, to the Adjudicating Authority for its permission to
conduct an auction in such manner.
(11)
If required, the liquidator may conduct multiple rounds of auctions to maximize the
realization from the sale of the assets, and to promote the best interests of the creditors.
(12)
31[On the close of the auction, the highest bidder shall be invited to provide balance
sale consideration within ninety days of the date of such demand:
Provided that payments made after thirty days shall attract interest at the rate of 12%:
Provided further that the sale shall be cancelled if the payment is not received within
ninety days.
(13)
On payment of the full amount, the sale shall stand completed, the liquidator shall
execute certificate of sale or sale deed to transfer such assets and the assets shall be
delivered to him in the manner specified in the terms of sale.]
2.
PRIVATE SALE
(1)
Where an asset is to be sold through private sale, a liquidator shall conduct the sale in
the manner specified herein.
(2)
The liquidator shall prepare a strategy to approach interested buyers for assets to be
sold by private sale.
31 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to
substitution it stood as under:
“On the close of the auction, the highest bidder shall be invited to provide balance sale consideration within fifteen
days of the date when he is invited to provide the balance sale consideration. On payment of the full amount, the
sale shall stand completed, the liquidator shall execute certificate of sale or sale deed to transfer such assets and
the assets shall be delivered to him in the manner specified in the terms of sale.”
36
(3)
Private sale may be conducted through directly liaising with potential buyers or their
agents, through retail shops, or through any other means that is likely to maximize the
realizations from the sale of assets.
(4)
The sale shall stand completed in accordance with the terms of sale.
(5)
Thereafter, the assets shall be delivered to the purchaser, on receipt of full consideration
for the assets, in the manner specified in the terms of sale.
SCHEDULE II
FORM A
PROFORMA FOR REPORTING CONSULTATIONS WITH STAKEHOLDERS
(Under Regulation 8 of the Insolvency and Bankruptcy Board of India (Liquidation Process)
Regulations, 2016)
Separate proforma to be used for each stakeholder or group of homogenous stakeholders
NAME AND REGISTRATION NO. OF
LIQUIDATOR:
NAME
OF CORPORATE DEBTOR
BEING LIQUIDATED:
LIQUIDATION CASE NO:
NAME OF THE STAKEHOLDER:
DATE OF CONSULTATION (IF HELD IN
PERSON):
NUMBER
AND
DATES
OF
COMMUNICATIONS RECEIVED FROM
STAKEHOLDER:
SUMMARY OF CONSULTATION:
SCHEDULE II
32[ FORM B
PUBLIC ANNOUNCEMENT
(Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process)
Regulations, 2016)
FOR THE ATTENTION OF THE STAKEHOLDERS OF [Name of Corporate Debtor]
32 Substituted by Notification No. IBBI/2018-19/GN/REG037, dated 22nd October, 2018 (w.e.f. 22-10-2018).
37
Sl. No. PARTICULARS
DETAILS
1. Name of corporate debtor
2. Date of incorporation of corporate debtor
3. Authority under which corporate debtor is incorporated /
registered
4. Corporate Identity No. / Limited Liability Identification No.
of corporate debtor
5. Address of the registered office and principal office (if any) of
corporate debtor
6. Date of closure of Insolvency Resolution Process
7. Liquidation commencement date of corporate debtor
8. Name and registration number of the insolvency professional
acting as liquidator
9.
Address and e-mail of the liquidator, as registered with the
Board
10.
Address and e-mail to be used for correspondence with the
liquidator
11.
Last date for submission of claims
Notice is hereby given that the National Company Law Tribunal (Name of Bench) has ordered
the commencement of liquidation of the [Name of the corporate debtor] on [date of passing of
order of liquidation under section 33 of the Code].
The stakeholders of [-----Name of the corporate debtor] are hereby called upon to submit their
claims with proof on or before -------33[insert the date falling thirty days from the liquidation
commencement date], to the liquidator at the address mentioned against item No.10.
The financial creditors shall submit their claims with proof by electronic means only. All other
creditors may submit the claims with the proof in person, by post or by electronic means.
Submission of false or misleading proof of claims shall attract penalties.
Name and signature of liquidator
:
Date and place :
:
33 Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).
38
SCHEDULE II
FORM C
PROOF OF CLAIM BY OPERATIONAL CREDITORS EXCEPT WORKMEN AND
EMPLOYEES
(Under Regulation 17 of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016)
[Date]
To
The Liquidator
[Name of the Liquidator]
[Address as set out in the public announcement]
From
[Name and address of the operational creditor]
Subject: Submission of proof of claim in respect of the liquidation of [name of corporate
debtor] under the Insolvency and Bankruptcy Code, 2016.
Madam/Sir,
[Name of the operational creditor] hereby submits this proof of claim in respect of the
liquidation of [name of corporate debtor]. The details for the same are set out below:
1. NAME OF OPERATIONAL CREDITOR
(IF
AN
INCORPORATED
BODY
PROVIDE
IDENTIFICATION
NUMBER
AND
PROOF
OF
INCORPORATION,
IF
A
PARTNERSHIP
OR
INDIVIDUAL PROVIDE IDENTIFICATION RECORDS*
OF ALL THE PARTNERS OR THE INDIVIDUAL)
2. ADDRESS
OF
OPERATIONAL
CREDITOR
FOR
CORRESPONDENCE
3. TOTAL AMOUNT OF CLAIM, INCLUDING ANY
INTEREST, AS AT LIQUIDATION COMMENCEMENT
DATE AND DETAILS OF NATURE OF CLAIM
PRINCIPAL
:
INTEREST
:
TOTAL CLAIM
:
4. DETAILS OF DOCUMENTS BY REFERENCE TO WHICH
THE DEBT CAN BE SUBSTANTIATED
39
5. DETAILS OF ANY DISPUTE AS WELL AS THE RECORD
OF
PENDENCY
OF
SUIT
OR
ARBITRATION
PROCEEDINGS
6. DETAILS OF HOW AND WHEN DEBT INCURRED
7. DETAILS OF ANY MUTUAL CREDIT, MUTUAL DEBTS,
OR OTHER MUTUAL DEALINGS BETWEEN THE
CORPORATE DEBTOR AND THE OPERATIONAL
CREDITOR WHICH MAY BE SET-OFF AGAINST THE
CLAIM
8. DETAILS OF ANY RETENTION OF TITLE IN RESPECT
OF GOODS OR PROPERTIES TO WHICH THE DEBT
REFERS OR ANY OTHER SECURITY
34[8A. WHETHER
SECURITY
INTEREST
RELINQUISHED
Yes/ No]
9. DETAILS OF ANY ASSIGNMENT OR TRANSFER OF
DEBT IN HIS FAVOUR
10. DETAILS OF THE BANK ACCOUNT TO WHICH THE
OPERATIONAL
CREDITOR’S
SHARE
OF
THE
PROCEEDS OF LIQUIDATION CAN BE TRANSFERRED
11. LIST OUT AND ATTACH THE DOCUMENTS RELIED
ON IN SUPPORT OF THE CLAIM.
(i)
(ii)
(iii)
Signature of operational creditor or person authorised to act on his behalf
(Please enclose the authority if this is being submitted on behalf of the operational creditor)
Name in BLOCK LETTERS
Position with or in relation to creditor
Address of person signing
34 Ins. by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).
40
*PAN, Passport, AADHAAR Card or the identity card issued by the Election Commission of
India.
AFFIDAVIT
I, [name of deponent], currently residing at [address of deponent], do solemnly affirm
and state as follows:
1.
The above named corporate debtor was, at liquidation commencement date, that is, the
__________ day of __________ 20______ and still is, justly and truly indebted
to me [or to me and[insert name of co-partners], my co-partners in trade, or, as the case
may be] in the sum of Rs. __________ for _____ [please state consideration].
2.
In respect of my claim of the said sum or any part thereof, I have relied on and the
documents specified below:
[Please list the documents relied on as evidence of debt.]
3.
The said documents are true, valid and genuine to the best of my knowledge,
information and belief.
4.
In respect of the said sum or any part thereof, I have not, nor have my partners or any
of them, nor has any person, by my/our order, to my/our knowledge or belief, for my/
our use, had or received any manner of satisfaction or security whatsoever, save and
except the following:
[Please state details of any mutual credit, mutual debts, or other mutual dealings
between the corporate debtor and the operational creditor which may be set-off against
the claim.]
Solemnly, affirmed at _____________________ on _________________ day, the
__________day of__________ 20_____
Before me,
Notary / Oath Commissioner
Deponent's signature
VERIFICATION
I, the Deponent hereinabove, do hereby verify and affirm that the contents of para ___ to __of
this affidavit are true and correct to my knowledge and belief. Nothing is false and nothing
material has been concealed therefrom.
41
Verified at ________ on this ________ day of ________ 201_____
Deponent's signature
SCHEDULE II
FORM D
PROOF OF CLAIM BY FINANCIAL CREDITORS
(Under Regulation 18 of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016)
[Date]
To
The Liquidator
[Name of the Liquidator]
[Address as set out in the public announcement]
From
[Name and address of the registered office and principal office of the financial creditor]
Subject: Submission of proof of claim in respect of the liquidation of [name of corporate
debtor] under the Insolvency and Bankruptcy Code, 2016.
Madam/Sir,
[Name of the financial creditor] hereby submits this proof of claim in respect of the liquidation
of [name of corporate debtor]. The details for the same are set out below:
1. NAME OF FINANCIAL CREDITOR
(IF
AN
INCORPORATED
BODY
PROVIDE
IDENTIFICATION NUMBER AND PROOF OF
INCORPORATION,
IF
A
PARTNERSHIP
OR
INDIVIDUAL
PROVIDE
IDENTIFICATION
RECORDS* OF ALL THE PARTNERS OR THE
INDIVIDUAL)
2. ADDRESS AND EMAIL OF FINANCIAL CREDITOR
FOR CORRESPONDENCE.
3. TOTAL AMOUNT OF CLAIM, INCLUDING ANY
INTEREST,
AS
AT
THE
LIQUIDATION
COMMENCEMENT
DATE
AND
DETAILS
OF
PRINCIPAL
:
INTEREST
:
TOTAL CLAIM
:
42
NATURE OF CLAIM (WHETHER TERM LOAN,
SECURED, UNSECURED)
4. DETAILS OF DOCUMENTS BY REFERENCE TO
WHICH THE DEBT CAN BE SUBSTANTIATED
5. DETAILS OF ANY ORDER OF A COURT OF
TRIBUNAL THAT HAS ADJUDICATED ON THE
NON-PAYMENT OF DEBT
6. DETAILS OF HOW AND WHEN DEBT INCURRED
7. DETAILS OF ANY MUTUAL CREDIT, MUTUAL
DEBTS,
OR
OTHER
MUTUAL
DEALINGS
BETWEEN THE CORPORATE DEBTOR AND THE
FINANCIAL CREDITOR WHICH MAY BE SET-OFF
AGAINST THE CLAIM
8. DETAILS OF ANY SECURITY HELD, THE VALUE
OF THE SECURITY, AND THE DATE IT WAS GIVEN
35[8A. WHETHER
SECURITY
INTEREST
RELINQUISHED
Yes/ No]
9. DETAILS OF ANY ASSIGNMENT OR TRANSFER
OF DEBT IN HIS FAVOUR
10. DETAILS OF THE BANK ACCOUNT TO WHICH
THE FINANCIAL CREDITOR’S SHARE OF THE
PROCEEDS
OF
LIQUIDATION
CAN
BE
TRANSFERRED
11. LIST OUT AND ATTACH THE DOCUMENTS
RELIED ON IN SUPPORT OF THE CLAIM.
(i)
(ii)
(iii)
Signature of financial creditor or person authorised to act on his behalf
(please enclose the authority if this is being submitted on behalf a financial creditor)
Name in BLOCK LETTERS
35 Ins. by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).
43
Position with or in relation to creditor
Address of person signing
*PAN, Passport, AADHAAR Card or the identity card issued by the Election Commission of
India.
AFFIDAVIT
I, [name of deponent], currently residing at [address of deponent], do solemnly affirm
and state as follows:
1.
The above named corporate debtor was, at the liquidation commencement date, that is,
the __________ day of __________ 20____ and still is, justly and truly indebted
to me [or to me and [insert name of co-partners], my co-partners in trade, or, as the
case may be] in the sum of Rs. __________ for ……..[please state consideration].
2.
In respect of my claim of the said sum or any part thereof, I have relied on the
documents specified below:
[Please list the documents relied on as evidence of debt and of non-payment.]
3.
The said documents are true, valid and genuine to the best of my knowledge,
information and belief.
4.
In respect of the said sum or any part thereof, I have not, nor have my partners or any
of them, nor has any person, by my/our order, to my/our knowledge or belief, for my/
our use, had or received any manner of satisfaction or security whatsoever, save and
except the following:
[Please state details of any mutual credit, mutual debts, or other mutual dealings
between the corporate debtor and the financial creditor which may be set-off against
the claim.]
Solemnly, affirmed at _____________________ on _________________ day, the
__________day of__________ 20_____
Before me,
Notary / Oath Commissioner.
Deponent's signature.
VERIFICATION
44
I, the Deponent hereinabove, do hereby verify and affirm that the contents of para ___ to __of
this affidavit are true and correct to my knowledge and belief. Nothing is false and nothing
material has been concealed therefrom.
Verified at ________ on this ________ day of ________ 201___.
Deponent's signature.
SCHEDULE II
FORM E
PROOF OF CLAIM BY A WORKMAN OR EMPLOYEE
(Under Regulation 19 of the Insolvency and Bankruptcy (Liquidation Process) Regulations,
2016)
[Date]
To
The Liquidator
[Name of the Liquidator]
[Address as set out in public announcement]
From
[Name and address of the workman / employee]
Subject: Submission of proof of claim in respect of liquidation of (Name of corporate debtor)
under the Insolvency and Bankruptcy Code, 2016.
Madam/Sir,
[Name of the workman / employee], hereby submits this proof of claim in respect of the
liquidation of [name of corporate debtor]. The details for the same are set out below:
1. NAME OF WORKMAN / EMPLOYEE
2. PAN, PASSPORT, THE IDENTITY CARD
ISSUED BY THE ELECTION COMMISSION OF
INDIA OR AADHAAR CARD OF WORKMAN /
EMPLOYEE
3. ADDRESS AND EMAIL ADDRESS (IF ANY) OF
WORKMAN
/
EMPLOYEE
FOR
CORRESPONDENCE
45
4. TOTAL AMOUNT OF CLAIM
(INCLUDING ANY INTEREST AS AT THE
LIQUIDATION COMMENCEMENT DATE)
5. DETAILS OF DOCUMENTS BY REFERENCE TO
WHICH THE DEBT CAN BE SUBSTANTIATED.
6. DETAILS OF ANY DISPUTE AS WELL AS THE
RECORD OF PENDENCY OR ORDER OF SUIT
OR ARBITRATION PROCEEDINGS
7. DETAILS OF HOW AND WHEN CLAIM AROSE
8. DETAILS OF ANY MUTUAL CREDIT, MUTUAL
DEBTS, OR OTHER MUTUAL DEALINGS
BETWEEN THE CORPORATE DEBTOR AND
THE WORKMAN / EMPLOYEE WHICH MAY BE
SET-OFF AGAINST THE CLAIM
9. DETAILS OF THE BANK ACCOUNT TO WHICH
THE WORKMAN / EMPLOYEE’S SHARE OF
THE PROCEEDS OF LIQUIDATION CAN BE
TRANSFERRED
10. LIST OUT AND ATTACH THE DOCUMENTS
RELIED ON IN SUPPORT OF THE CLAIM.
(i)
(ii)
(iii)
Signature of workman / employee or person authorised to act on his behalf
[Please enclose the authority if this is being submitted on behalf of an operational creditor]
Name in BLOCK LETTERS
Position with or in relation to creditor
Address of person signing
46
AFFIDAVIT
I, [name of deponent], currently residing at [insert address], do solemnly affirm and state as
follows:
5.
[Name of corporate debtor], the corporate debtor was, at the liquidation
commencement date, that is, the __________ day of __________ 20__, justly and truly
indebted to me in the sum of Rs. [insert amount of claim].
6.
In respect of my claim of the said sum or any part thereof, I have relied on the
documents specified below:
[Please list the documents relied on as evidence of claim]
7.
The said documents are true, valid and genuine to the best of my knowledge,
information and belief.
8.
In respect of the said sum or any part thereof, I have not nor has any person, by
my order, to my knowledge or belief, for my use, had or received any manner of
satisfaction or security whatsoever, save and except the following:
[Please state details of any mutual credit, mutual debts, or other mutual dealings
between the corporate debtor and the workman / employee which may be set-off against
the claim.]
Solemnly, affirmed at [insert place] on _________________ day, the __________day
of__________ 20_____
Before me,
Notary/ Oath Commissioner
Deponent's signature
VERIFICATION
I, the Deponent hereinabove, do hereby verify and affirm that the contents of paragraph ___ to
__of this affidavit are true and correct to my knowledge and belief and no material facts have
been concealed therefrom.
Verified at ______ on this _____ day of ____ 201__
Deponent's signature.
47
SCHEDULE II
FORM F
PROOF OF CLAIM BY AUTHORISED REPRESENTATIVE OF WORKMEN OR
EMPLOYEES
(Under Regulation 19 of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016)
[Date]
To
The Liquidator
[Name of the Liquidator]
[Address as set out in the public announcement]
From
[Name and address of the authorised representative of workmen/ employees]
Subject: Submission of proof of claim in respect of the liquidation of [name of corporate
debtor] under the Insolvency and Bankruptcy Code, 2016.
Madam/Sir,
I, [name of duly authorised representative of the workmen/ employees] currently residing at
[address of duly authorised representative of the workmen/ employees], on behalf of the
workmen and employees employed by the above named corporate debtor, solemnly affirm and
say:
1.
That the abovenamed corporate debtor was, on the liquidation commencement date,
that is, the ________ day of ______ 20 ___ and still is, justly truly indebted to the
several persons whose names, addresses, and descriptions appear in the Annexure
below in amounts severally set against their names in such Annexure for wages,
remuneration and other amounts due to them respectively as workmen or/ and
employees in the employ of the corporate debtor in respect of services rendered by
them respectively to the corporate debtor during such periods as are set out against their
respective names in the said Annexure.
2.
That for which said sums or any part thereof, they have not, nor has any of them, had
or received any manner of satisfaction or security whatsoever, save and except the
following:
[Please state details of any mutual credits, mutual debts, or other mutual dealings
between the corporate debtor and the workmen / employees which may be set-off
against the claim.]
48
Signature
:
ANNEXURE
1.
Details of Employees/ Workmen
S
NO.
NAME OF
EMPLOYEE/
WORKMEN
IDENTIFICATION
NUMBER
(PAN/,
PASSPORT
NUMBER/,
AADHAAR NO. /
ID CARD ISSUED
BY
THE
ELECTION
COMMISSION
AND EMPLOYEE
ID NO., IF ANY
TOTAL AMOUNT
DUE
AND
DETAILS
ON
NATURE
OF
CLAIM
PERIOD OVER
WHICH
AMOUNT DUE
DETAILS
OF
EVIDENCE
OF
DEBT INCLUDING
EMPLOYMENT
CONTRACTS AND
OTHER PROOFS
1.
2.
3.
4.
5.
2.
Particulars of how dues were incurred by the corporate debtor, including particulars of
any dispute as well as the record of pendency of suit or arbitration proceedings.
3.
Particulars of any mutual credit, mutual debts, or other mutual dealings between the
corporate debtor and the workmen / employee which may be set-off against the claim.
4.
Please list out and attach the documents relied on to prove the claim.
49
AFFIDAVIT
I, [insert full name, address and occupation of deponent] do solemnly affirm and state as
follows:
1.
The above named corporate debtor was, at the liquidation commencement date that is,
the __________ day of __________ 20__ and still is, justly and truly indebted to the
workmen and employees in the sum of Rs. __________ for _____ [please state the
nature and duration of employment].
2.
In respect of my claim of the said sum or any part thereof, I have relied on the
documents specified below:
[Please list the documents relied on as evidence of proof]
3.
The said documents are true, valid and genuine to the best of my knowledge,
information and belief.
4.
In respect of the said sum or any part thereof, the workmen / employees have not, nor
has any person, by my order, to my knowledge or belief, for my use, had or has received
any manner of satisfaction or security whatsoever, save and except the following:
[Please state details of any mutual credit, mutual debts, or other mutual dealings
between the corporate debtor and the workmen / employees which may be set-off
against the claim.]
Solemnly, affirmed at _____________________ on _________________ day, the
__________day of__________ 20_____
Before me,
Notary / Oath Commissioner.
Deponent's signature
VERIFICATION
I, the Deponent hereinabove, do hereby verify and affirm that the contents of para ___ to __of
this affidavit are true and correct to my knowledge and belief. Nothing is false and nothing
material has been concealed therefrom.
50
Verified at _______ on this _______ day of _______ 201___
Deponent's signature
SCHEDULE II
FORM G
PROOF OF CLAIM BY ANY OTHER STAKEHOLDER
(Under Regulation 20 of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016)
[Date]
To
The Liquidator
[Name of the Liquidator]
[Address as set out in the public announcement]
From
[Name and address of the other stakeholder]
Subject: Submission of proof of claim in respect of the liquidation of [name of corporate
debtor] under the Insolvency and Bankruptcy Code, 2016.
Madam/Sir,
[Name of the other stakeholder] hereby submits this proof of claim in respect of the liquidation
in the case of [name of corporate debtor]. The details for the same are set out below:
1. NAME OF OTHER STAKEHOLDER
(IF AN INCORPORATED BODY PROVIDE
IDENTIFICATION NUMBER AND PROOF OF
INCORPORATION. IF A PARTNERSHIP OR
INDIVIDUAL
PROVIDE
IDENTIFICATION
RECORDS* OF ALL THE PARTNERS OR THE
INDIVIDUAL)
2. ADDRESS AND EMAIL OF THE OTHER
STAKEHOLDER FOR CORRESPONDENCE.
51
3. TOTAL AMOUNT OF CLAIM, INCLUDING
ANY
INTEREST
AS
AT
LIQUIDATION
COMMENCEMENT
AND
DETAILS
OF
NATURE OF CLAIM
PRINCIPAL
CLAIM
:
INTEREST
:
TOTAL CLAIM
:
4. DETAILS OF DOCUMENTS BY REFERENCE
TO
WHICH
THE
CLAIM
CAN
BE
SUBSTANTIATED
5. DETAILS OF HOW AND WHEN CLAIM
AROSE
6. DETAILS
OF
ANY
MUTUAL
CREDIT,
MUTUAL DEBTS, OR OTHER MUTUAL
DEALINGS BETWEEN THE CORPORATE
DEBTOR AND THE OTHER STAKEHOLDER
WHICH MAY BE SET-OFF AGAINST THE
CLAIM
7. DETAILS OF ANY RETENTION OF TITLE IN
RESPECT OF GOODS OR PROPERTIES TO
WHICH THE CLAIM REFERS
8. DETAILS
OF
ANY
ASSIGNMENT
OR
TRANSFER OF DEBT IN HIS FAVOUR
9. DETAILS OF THE BANK ACCOUNT TO
WHICH
THE
OTHER
STAKEHOLDER’S
SHARE OF THE PROCEEDS OF LIQUIDATION
CAN BE TRANSFERRED
10. LIST OUT AND ATTACH THE DOCUMENTS
RELIED ON IN SUPPORT OF THE CLAIM.
(i)
(ii)
(iii)
Signature of other stakeholder or person authorised to act on his behalf
(Please enclose the authority if this is being submitted on behalf of the other stakeholder)
Name in BLOCK LETTERS
52
Position with or in relation to creditor
Address of person signing
*PAN, Passport, AADHAAR Card or the identity card issued by the Election Commission of
India.
AFFIDAVIT
I, [insert full name, address and occupation of deponent to be given] do solemnly affirm
and state as follows:
1.
The above named corporate debtor was, at the liquidation commencement date, that is,
the __________ day of __________ 20__ and still is, justly and truly indebted to me [or
to me and [insert name of co-partner], my co-partners in trade, or, as the case may be,]
in the sum of Rs. __________ for _____ [please state consideration].
2.
In respect of my claim of the said sum or any part thereof, I have relied on the
documents specified below:
[Please list the documents relied on as evidence of proof.]
3.
The said documents are true, valid and genuine to the best of my knowledge,
information and belief.
4.
In respect of the said sum or any part thereof, I have not, nor have my partners or any
of them, nor has any person, by my/our order, to my/our knowledge or belief, for my/
our use, had or received any manner of satisfaction or security whatsoever, save and
except the following:
[Please state details of any mutual credit, mutual debts, or other mutual dealings
between the corporate debtor and the other stakeholder which may be set-off against
the claim.]
Solemnly, affirmed at _____________________ on _________________ day, the
__________day of__________ 20_____
Before me,
Notary / Oath Commissioner.
Deponent's signature.
53
VERIFICATION
I, the Deponent hereinabove, do hereby verify and affirm that the contents of para ___ to __of
this affidavit are true and correct to my knowledge and belief. Nothing is false and nothing
material has been concealed therefrom.
Verified at ______ on this ______ day of ______ 201__
Deponent's signature.
36[FORM H
COMPLIANCE CERTIFICATE
[Under Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016]
I, [Name of the Liquidator], an insolvency professional enrolled with [name of insolvency
professional agency] and registered with the Board with registration number [registration
number], am the Liquidator for the Liquidation Process of [name of the corporate debtor (CD)].
2. The details of the Liquidation Process are as under:
36 Ins.by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-01-2019).
Sl.
No.
Particulars
Description
(1)
(2)
(3)
1
Name of the corporate debtor
2
Case No. & NCLT Bench
3
Date of initiation of liquidation
4
Date of appointment of liquidator
5
Date of commencement of CIRP
6
Name of RP during CIRP and his registration No. as IP
7
Name of Liquidator and his registration No. as IP
8
Date of Publication of Public Announcement under Form B
9
Date of Intimation to Registry and Information Utility, if any, about
commencement of Liquidation
10
Date of handover of charge by RP
11
Date of submission of compliance, if any, directed by AA in the
liquidation order and its particulars
12
Date of appointment of registered valuers, if any
13
Date of notice for uncalled capital/unpaid capital contribution
14
Date of realisation of uncalled capital/unpaid capital contribution
15
Date of opening of liquidation account with Bank A/c details
16
Date of constitution of Consultation Committee
17
No. of meetings of consultation committee held
18
Date of submission of list of stakeholders to AA
54
37 Substituted by Notification No. IBBI/2019-20/GN/REG/053 dated 6th January, 2020 (w.e.f. 06-01-2020).
Prior to substitution, these entries stood as “
44
Date of application to AA as per Reg 46(1)
45
Date of transfer of undistributed/unclaimed assets or proceeds of liquidation to public Account of India
46
Date of intimation as per Reg 46(3)
47
Date of Final Report to AA (prior to dissolution application)”
19
Date of public announcement of list of stakeholders
20
Date of filing of preliminary report & assets memorandum to AA
21
Fair value
22
Liquidation value
23
Date of public announcement for auction (please add additional rows,
if required)
24
Date of order of AA to dispense with the public announcement for
Auction
25
Date of permission of AA for physical Auction
26
Date of permission of AA for private sale
27
Date of permission of AA for distribution of unsold assets to
stakeholders
28
Date of permission of the liquidator to realise the un-relinquished
security interest by the secured creditor
29
Modified list of stakeholders and date of submission to AA
30
Date of first realisation
31
Date of second realisation
32
Date of first distribution
33
Date of second distribution
34
Date of submission of Quarterly Progress Report-I (FY-1)
35
Date of submission of Asset Sales Report to AA
36
Date of submission of Quarterly Progress Report-II
37
Date of submission of Quarterly Progress Report-III
38
Date of submission of Quarterly Progress Report-IV & Audit Report
39
Date of submission of Quarterly Progress Report-I (FY-2)
40
Date of submission of Quarterly Progress Report-II
41
Date of submission of Quarterly Progress Report-III
42
Date of submission of Quarterly Progress Report-IV & Audit Report
43
Date of intimation to statutory authority as applicable.
a) PF
b) ESI
c) Income Tax Dept
d) Inspector of Factory
e) GST/VAT
f) Others
37[44 Date of deposit of unclaimed dividends or undistributed proceeds and
income and interest thereon, if any, under sub-regulations (2), (3) or
(4) of regulation 46
45
Amount deposited into Corporate Liquidation Account:
(a) Amount of unclaimed dividends
(b) Amount of undistributed proceeds
55
3. The details of the assets as per Asset Memorandum and Final Sale Report are as under:
Sl.
No.
Assets
Mode of Sale
Estimated
Liquidation
Value
Realisation
Amount (Rs.)
Date of Transfer to
Liquidation
Account
(1)
(2)
(3)
(4)
(5)
(6)
4. (a) Liquidation value of the liquidation estate:
(b) Amount realised from sale of liquidation estate:
(c) The amounts distributed to stakeholders as per section 52 or 53 of Code are as under:
(Amount in Rs. lakh)
Sl.
No.
Stakeholders* under
section 53 (1)
Amount
Claimed
Amount
Admitted
Amount
Distributed
Amount Distributed
to the Amount
Claimed (%)
Remarks
(1)
(2)
(3)
(4)
(5)
(6)
(7)
1
(a): CIRP Costs
2
(a): Liquidation Costs
3
(b)(i)
4
(b)(ii)
5
(c)
6
(d)
7
(e)(i)
8
(e) (ii)
9
(f)
10
(g)
11
(h)
Total
*If there are sub-categories in a category, please add rows for each sub-category.
5. The Liquidation Process has been conducted as per the timeline indicated in regulation 47 as
under:
Section of the
Code /
Regulation No.
Description of Task
Timeline as per
regulation 47
Actual Timeline
(1)
(2)
(3)
(4)
Section 33
Commencement of LCD and
Appointment of Liquidator
T
T
6. The following are deviations /non-compliances with the provisions of the Insolvency and
Bankruptcy Code, 2016, regulations made, or circulars issued there under (If any deviation/ non-
compliances were observed, please state the details and reasons for the same):
(c) Income referred to in sub-regulation (2) and (3) of regulation
46
(d) Interest referred to in sub-regulation (4) of regulation 46
Total
46
Date of submission to the Board and the Authority under sub-
regulation (5) of regulation 46]
47
Date of Final Report to AA (prior to dissolution application)
56
Sl. No.
Deviation/Non-
compliance observed
Section of the Code / Regulation
No. / Circular No.
Reasons
Whether rectified or not
(1)
(2)
(3)
(4)
(5)
1
2
3
7. The dissolution application has been filed [before expiry of the period of one year] / [after expiry
of one year]. Please state details of any extension sought with the reason and granted:
8. The details of application(s) filed / pending in respect of avoidance of transactions.
Sl.
No.
Type of Transaction
Date of Filing
with
Adjudicating
Authority
Date of Order of
the Adjudicating
Authority
Brief of the
Order
(1)
(2)
(3)
(4)
(5)
1
Preferential transactions under section 43
2
Undervalued transactions under section 45
3
Extortionate credit transactions under section 50
4
Fraudulent transactions under section 66
9. All undischarged or matters pending before any Court or Tribunal relating to corporate debtor, if
any, have been reported to AA.
10. I (Name of Liquidator), hereby certify that the contents of this certificate are true and correct to
the best of my knowledge and belief, and nothing material has been concealed there from.
(Signature)
Name of the Liquidator:
IP Registration No:
Address as registered with the Board:
Email id as registered with the Board:
Date:
Place:]
38[ FORM -I
Deposit of Unclaimed Dividends and / or Undistributed Proceeds
[Under Regulation 46 (5) of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016]
A. Details of Liquidation Process
Sl. No.
Description
Particulars
(1)
(2)
(3)
1
Name of the Corporate Debtor
2
Identification Number of CD (CIN/DIN)
3
CIRP Commencement Date
4
Liquidation Commencement Date
5
Date of Deposit into the Corporate Liquidation Account
6
Amount deposited into the Corporate Liquidation Account (Rs.)
38 Ins. by Notification No. IBBI/2019-20/GN/REG/053 dated 6th January, 2020 (w.e.f. 06-01-2020).
57
7
Bank Account from which the amount is transferred to Corporate Liquidation
Account
(a) Account No:
(b) Name of Bank:
(c) IFSC:
(d) MICR:
(e) Address of Branch of the Bank:
8
Details of the Amount (Rs.) deposited into Corporate Liquidation Account
(a)
Unclaimed dividends
(b)
Undistributed proceeds
(c)
Income earned till the due date of deposit
(d)
Interest at the rate of twelve per cent on the amount retained
beyond due date (Please show computation of interest amount)
Total
B. Details of Stakeholders entitled to Unclaimed Dividends or Undistributed Proceeds
Sl.
No.
Name
of
stakeholder
entitled to receive
unclaimed
dividends
or
undistributed
proceeds
Address,
phone
number
and
email address of
the stakeholder
Identification Number of
the
stakeholder
(PAN,
CIN, Aadhar No.) (Please
attach
Identification
proof.)
Amount due
to
the
stakeholder
(Rs.)
Nature
of
Amount
due
Remarks
(1)
(2)
(3)
(4)
(5)
(6)
(7)
1
2
3
C. Details of Deposit made into the Corporate Liquidation Account
I (Name of Liquidator) have deposited Rs…… (Rupees ….only) into the Corporate
Liquidation Account on …. vide acknowledgment no.. … dated ……
I (Name of Liquidator) hereby certify that the details provided in this Form are true and correct
to the best of my knowledge and belief, and nothing material has been concealed.
(Signature)
Name of the Liquidator
IP Registration No:
Address as registered with the Board:
Email id as registered with the Board:
Date:
Place:
FORM J
Withdrawal from Corporate Liquidation Account
[Under Regulation 46 (7) of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016]
Sl. No.
Description
Particulars
(1)
(2)
(3)
1
Name of the Corporate Debtor
2
Identification Number of CD (CIN/DIN)
3
CIRP Commencement Date
4
Liquidation Commencement Date
58
5
Date of Dissolution Order
6
Date of Deposit into the Corporate Liquidation Account
7
Name of the Stakeholder seeking withdrawal
8
Identification Number of the Stakeholder
(a) PAN
(b) CIN
(c) Aadhaar No.
9
Address and Email Address of Stakeholder
10
Amount of Claim of the Stakeholder, admitted by the Liquidator
11
Amount of unclaimed dividends / undistributed proceeds deposited by the liquidator
in the Corporate Liquidation Account against the stakeholder
12
Amount of unclaimed dividends / undistributed proceeds the Stakeholder seeks to
withdraw from the Corporate Liquidation Account
13
Bank Account to which the amount is to be transferred from the Corporate
Liquidation Account, if withdrawal is approved
(a) Account No.:
(b) Name of Bank:
(c) IFSC:
(d) MICR:
(e) Address of Branch of the Bank:
14
Reasons for not taking dividend or proceeds during the Liquidation Process
15
Any legal disability in applying for withdrawal? (Yes / No), If yes, please provide
details
DECLARATION
I, [Name of stakeholder], currently residing at [insert address], hereby declare and state as
follows:
1. I am entitled to receive a sum of Rs…. (Rupees … only) from the Corporate Liquidation
Account, as presented above.
2. In respect of the said sum or any part thereof, neither I nor any person, by my order, to my
knowledge or belief, for my use, has received any manner of satisfaction or security
whatsoever, save and except the following: ...............
3. I undertake to refund the entire amount with interest as decided by the Board, in case the
Board finds that I am not entitled to this amount.
4. I authorise the Board to initiate appropriate legal action against me if my claim is found
false at any time.
Date:
Place:
(Signature of the Stakeholder)
VERIFICATION
I, [Name] the stakeholder hereinabove, do hereby verify that the contents of this Form are true
and correct to my knowledge and belief and no material fact has been concealed therefrom.
Verified at … on this …… day of ………., 20…
(Signature of the Stakeholder)
[Note: In the case of a company or limited liability partnership, the declaration and
verification shall be made by the director/manager/secretary and in the case of other entities,
an officer authorised for the purpose by the entity].]
59
SCHEDULE III
(Under Regulation 6 of the Insolvency and Bankruptcy Board of India (Liquidation Process)
Regulations, 2016)
The formats contained in this Schedule are indicative in nature, and the liquidator may
make such modifications to them as he deems fit in the facts and circumstances of the
liquidation.
CASH BOOK
Name of Corporate Debtor.......................................................(in liquidation)
Date Particulars Ledger
Folio
No.
Receipt
Payments
Balance
Voucher
No.
Cash BankTotal Voucher
No.
Cash BankTotal Cash Bank Total
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Under 'particulars', the head of account to which the entry relates should be indicated so that
the entry may be posted under the proper head in the General Ledger.
GENERAL LEDGER
Name of Corporate Debtor.......................................................(in liquidation)
.......................................................(Head of account)
Date
Particulars
Dr.
(Rs.)
Cr.
(Rs.)
Balance
(Rs.)
1
2
3
4
5
Instructions:
1. A General Ledger should be maintained with such heads of account as the liquidator may
think necessary and appropriate. The following heads of account may be found suitable:
(1) Asset account
(2) Investments account
(3) Book Debts & Outstandings account
60
(4) Calls
(5) Rents Collected
(6) Interest on Securities and Deposits
(7) Advances received
(8) Miscellaneous receipts payments
(9) Establishment
(10) Legal charges
(11) Rents, Rates and Taxes
(12) Fees and Commission account
(13) Other expenses
(14) Suspense account
(15) Secured creditors
(16) Dividend account.
2. The entries in the General Ledger should be posted from the Cash Book.
3. The total of the debit balances and the total of the credit balances of the several heads of
account in the General Ledger should agree, after taking into consideration the cash and bank
balances as shown in the Cash Book. The totals should be tallied once a month.
BANK LEDGER
Corporate debtor’s (in liquidation) account with the Scheduled Bank
Date Particulars Deposits Withdrawals Balance
Challan
Number
Rs.
Cheque
Number
Rs.
Rs.
1
2
3
4
5
6
7
1.
2.
REGISTER OF ASSETS
Sl. No.
Description
of assets
Date of
taking
possession
Serial
number
of
Sales
Register
Date
of
sale
Date of
realization
Amount
Remarks
1
2
3
4
5
6
7
8
1.
2.
Instructions:
61
1. All the assets of the corporate debtor except the liquidator’s investments in securities and
outstandings to be realized should be entered in this Register.
SECURITIES AND INVESTMENTS REGISTER
Sl. No.
Petition
number
and name
of the
corporate
debtor
Date of
investment
Nature
and
particulars
of security
in which
investment
is made
Amount
Invested
(Rs.)
Dividend
or
interest
received
with date
of receipt
(Rs.)
Date of
disposal
Rema
rks
1
2
3
4
5
6
7
8
1.
2.
REGISTER OF BOOK DEBTS AND OUTSTANDINGS
Sl. No.
Name
and
address
of
debtor
Particul
ars of
debt
Amou
nt due
(Rs.)
Date of
bar by
limitati
on
Amou
nt
realis
ed
(Rs.)
Acti
on
take
n
Date of
realisati
on
Referen
ce to
Suits
Registe
r
Re
ma
rks
1
2
3
4
5
6
7
8
9
10
1.
2.
Instructions:
1. All debts due to the corporate debtor, both secured and unsecured, including amounts due
for arrears of calls made prior to the liquidation, should be entered in this Register.
TENANTS LEDGER
1. Description of property:
2. Name and address of tenant:
3. Date of tenancy:
4. Period of tenancy:
5. Rent (monthly or annual):
62
6. Special terms, if any:
7. Arrears on date of taking charge of property:
8. Advance received, if any:
Month
Demand
Realisation
Balance
Remarks
Amount
(Rs.)
Date
Amount
(Rs.)
Amount
(Rs.)
1
2
3 4
5
6
January
February
SUITS REGISTER
Sl.
No.
Nu
mb
er
of
suit
or
ap
pea
l
an
d
cou
rt
Nam
e and
addr
ess
of
plain
tiff/
appel
lant
and
his
advo
cate
Name
and
addres
s of
defend
ant/
respon
dent
and
his
advoc
ate
Amo
unt
of
clai
m
Da
te
of
fili
ng
Date
s of
hear
ing
Dat
e of
dec
ree
or
fina
l
ord
er
Natu
re of
relie
f
gran
ted
Amo
unt
decr
eed
Cost
s
decr
eed
Referen
ce to
Decree
Registe
r
Re
mar
ks
1
2
3
4
5
6
7
8
9
10
11
12
13
1.
2.
Instructions:
1. Applications made by or against the corporate debtor which are in the nature of suits
should also be entered in this Register.
63
DECREE REGISTER
Instructions:
1. The purpose of the Register is to enable the liquidator to keep watch on the progress of the
realization of decrees in favour of the corporate debtor in his charge.
2. Every decree or order for payment of money or delivery of property in favour of the corporate
debtor including an order for payment of costs whether made in a suit, appeal or application,
should be entered in this Register.
REGISTER OF CLAIMS AND DISTRIBUTIONS
Claims
Distributions declared and paid
Re
ma
rks
Sl. No. Na
me
and
Ad
dre
ss
of
cre
dito
r
Am
oun
t
clai
me
d
(Rs.
)
N
at
ur
e
of
cl
ai
m
(R
s.)
Am
ou
nt
ad
mit
ted
(Rs
.)
Wh
eth
er
ord
ina
ry
or
pre
fere
ntia
l
D
at
e
A
m
o
u
nt
(
R
s.
)
Da
te
an
d
Mo
de
of
Pa
ym
ent
Rat
e
A
mo
unt
(R
s.)
Da
te
an
d
mo
de
of
pa
ym
ent
Rat
e
Am
ou
nt
(Rs
.)
Da
te
an
d
mo
de
of
pa
ym
ent
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
1.
2.
Instructions:
1. Only claims admitted either wholly or in part should be entered in this Register.
Number
of suit or
appeal
and
court
Name
and
address
of judg-
ment
debtor
Amount
Decree
d
(Rs.)
Date of
decree
Action
taken
Amount
realized
(Rs.)
Date of
realisa-
tion
Reference
to
Suits
Register
1
2
3
4
5
6
7
8
1.
2.
64
2. The page on the left side should be reserved for claims and the page on the right side for
Distributions.
CONTRIBUTORY’S LEDGER
Sl.
No.
Name
and
address
of
contribut
ory
Numb
er of
shares
or
extent
of
interes
t held,
and
amoun
t paid
thereo
n
Calls
Rem
arks
Returns of share
capital
Remark
s
First call
2nd
call/
3rd
call
Dat
e of
ret
urn
Date
of
Paym
ent
Amo
unt
paid
(Rs.)
Date
of
call
and
amo
unt
calle
d
Amo
unt
paid
and
date
of
paym
ent
(Repe
at
colum
ns as
under
first
call)
1
2
3
4
5
6 to 9
10
11
12
13
14
1.
2.
Instructions:
Only contributories settled on the list of stakeholders should be entered in this Register and they
should be entered in the same order as in the list.
DISTRIBUTIONS REGISTER
Date on which distribution is made:
Total amount payable in this round of distribution:
Date
Number on list of stakeholders
Particulars Receipts Payments
1
2
3
4
5
1.
2.
Instructions:
1. Separate pages should be set apart for preferential and ordinary distributions.
2. The payments should be entered as and when they are made. Any amount which is returned
unpaid should be re-entered in the account under ‘Receipts’.
3. The number in column 2 should be the number of the stakeholders in the list of stakeholders
as finally settled.
65
4. The total amount of unclaimed distribution payable into the 39 [Corporate Liquidation
Account], and the amount paid into the Bank with the date of payment, should be shown at the
end of the account.
FEE REGISTER
Amount realized
on which fee are
payable
Amount
distributed on
which fee are
payable
Fee payable on
the amounts in the
two preceding
columns
Fee, if any
payable
otherwise
under order of
Adjudicating
Authority
Total fee
payable
Date
of
payme
nt
1
2
3
4
5
6
1.
2.
Instructions:
1. There should be a fresh opening for each year.
2. The fees due to the liquidator should be entered in the Register as soon as the audit of the
account for a quarter is completed.
SUSPENSE REGISTER
Date
Particulars
Debit (Rs.)
Credit (Rs.)
Balance (Rs.)
1
2
3
4
5
1.
2.
Instructions:
1. Advances made by the liquidator to any person should be entered in this Register.
2. There should be a separate opening for each person.
DOCUMENTS REGISTER
39 Substituted by Notification No. IBBI/2019-20/GN/REG053 dated 6th January, 2020 (w.e.f. 06-01-2020). Prior
to substitution it stood as under:
“Public Account of India”.
Sl. No.
Description
of document
Date of
receipt
From
whom
received
Reference
number of
shelf in which
document is
kept
How
disposed of
Rema
rks
66
Instruction: All documents of title like title-deeds, shares, promissory notes, etc., should be
entered in this Register.
BOOKS REGISTER
Date
From
whom
received
Serial
Number
Description
of books,
including
files
Shelf
number
How
disposed
of
Remarks
1
2
3
4
5
6
7
1.
2.
Instruction: All books and files of the corporate debtor which come into the hands of the
liquidator should be entered in this Register.
REGISTER OF UNCLAIMED DIVIDENDS AND UNDISTRIBUTED 40[PROCEEDS]
DEPOSITED
Sl. No.
Name of
person
entitled
to the
dividend
or
return
Whether
Creditor or
Contributory
Number on
list of
stakeholders
Date of
declaration
of dividend
or return
Rate of
dividend or
return
Total
amount
payable
(Rs.)
1
2
3
4
5
6
7
1.
2.
(Dr. M. S. Sahoo)
Chairperson
Insolvency and Bankruptcy Board of India
40 Substituted by Notification No. IBBI/2019-20/GN/REG053 dated 6th January, 2020 (w.e.f. 06-01-2020). Prior
to substitution it stood as under:
“ASSETS”.
1
2
3
4
5
6
7
1.
2.
