Claim Verification Service under Insolvency & Bankruptcy Code

Claim Verification under IBC - As per IBC the Corporate Insolvency Resolution Process is for the protection of creditors from debtors through filing of an insolvency petition which is based on delayed and default of payments by the debtors even after various time buffers being provided but inability of the corporate debtor to repay the amount owed. A claim can be filed by any creditor, workmen, employees, and other corporate debtors, under Section 7, Section 9 & section 10 of the IBC, 2016

The Corporate Insolvency Resolution Process can be initiated by making an application to the National Company Law Tribunal (NCLT) by the Financial Creditors. This is done via Claim Verification process and claim verification service under IBC which is done by the creditors via appointment of an Insolvency Resolution Professional (IRP) who then forms the Committee of Creditors (COC) which is a body of creditors having decision making power covered under Section 21 of IBC. The first step is of “revival” or recovery where the sole aim is to recover the consideration in question. Following which if the COC & IRP are not able to recover the consideration then the next step is to go for “liquidation” Section 38 of IBC says “Consolidation of Claims” which covers the procedure & steps of making a claim which are:

1. The liquidator shall receive or collect the claims of creditors within a period of 30 days from the date of the commencement of the liquidation process.
2. A financial creditor may submit a claim to the liquidator by providing a record of such claim with an information utility, the financial creditor may submit the claim as provided for the submission of claims for the operational creditor.
3. An operational creditor may submit a claim to the liquidator in such form and in such manner and along with such supporting documents required to prove the claim as specified by the Board.
4. A creditor who is partly a financial creditor and partly an operational creditor shall submit claims to the liquidator to the extent of his financial debt in and to the extent of his operational debt
5. A creditor may withdraw or vary his claim under this section within 14 days of its submission.

The “Verification of Claims” is mentioned in Section 39 under Chapter III OF Insolvency & Bankruptcy Code as -

1. The liquidator shall verify the claims within such time as specified by the Board.
2. The liquidator may require any creditor or the corporate debtor or any other person to produce any other document or evidence which is necessary for the purpose of verifying the full or part of the claim.

Since, the process & knowledge is clear the main step is having a team of supporting IRP’s who would help, guide & help in the whole process of revival & liquidation. A firm with high experience in such cases and with positive deliveries with proven track record, that’s where ASC Consulting comes in with over 25 years of professional experience & well-versed IRP’s providing Claim verification services.

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