Under the Insolvency and Bankruptcy Code, an Insolvency Petition for initiation of the Corporate Insolvency Resolution Process (“CIRP”) can be instituted only by Financial Creditors, Operational Creditors or the Corporate Debtor itself. Though, post the commencement of a Corporate Insolvency Resolution Process, other creditors apart from Financial Creditors and Operational Creditors are also entitled to file Claims. In the scheme under the Insolvency and Bankruptcy Code, there are two phases at which claims are called for from creditors of the Corporate Debtor. One is under the Insolvency and Bankruptcy Code by the Insolvency Resolution Professional/Resolution Professional and another is by the Liquidator.
The amalgamation of Claims under Insolvency and Bankruptcy Code 2016:
- The liquidator shall obtain or accumulate the claims of creditors within a period of thirty days from the date of the commencement of the liquidation process.
- A financial creditor may submit a claim to the liquidator by providing a record of such claim with an information utility
- Where the information relating to the claim is not recorded in the information utility, the financial creditor may submit the claim in the same manner provided for the submission of claims for the operational creditor.
- 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 may be specified by the Board.
- 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 the manner as provided and to the extent of his operational debt.
- A creditor may withdraw or vary his claim under this section within fourteen days of its submission.
Verification of claims
- The liquidator shall authenticate the claims filed under section 38 of the Insolvency and Bankruptcy code within such time as mentioned by the Board.
- The liquidator may need any creditor or the corporate debtor or any other person to produce any other certificate or evidence which he thinks is essential for the purpose of verifying the whole or any part of the claim.
How ASC Helps?
- Assistance in dealing with exceptional cases and making clients go through with insolvency and liquidation proceedings.
- Assistance in Claim filing with supporting documents.
- Assistance in obtaining Claims or Invoices amounts which are under dispute.
- Assistance in obtaining Debit notes issued by Corporate Debtor.
- Assistance in making payments to Operational Creditor by the Corporate Debtor.
- Advisory over Adjustment of Creditor balance & with Debit balances in Corporate Debtor Books.
- Assistance in filing Claim by a Creditor.
- Assistance in filing such proof before Approval of Resolution Plan.