Duties of interim resolution professional [ section 18 ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Duties of interim resolution professional The interim resolution professional shall perform the following duties, namely:- As per Section 18(1)(a) collect all information relating to the assets , finances and operations of the corporate debtor for determining the financial position of the corporate debtor, including information relating to- (i) business operations for the previous two years; (ii) financial and operational payments for the previous two years; (iii) list of assets and liabilities as on the initiation date; and (iv) such other matters as may be specified; As per Section 18(1)(b) receive and collate all the claims submitted by creditors to him, pursuant to the public announcement made under sections 13 and section 15 ; One of the key functions of the IRP is to collate all the claims submitted by creditors to him. Section 13(1) of the IBC states that the Adjudicating Authority, after admission of the application, will declare a moratorium, appoint an IRP, and cause a public announcement of the initiation of a CIRP and call for the submission of claims. The public announcement is made by the IRP. Section 13(2) of the IBC provides that the public announcement shall be done immediately , a word explained in regulation 6 under Chapter III of the CIRP Regulations as meaning not later than three days from the date of the IRP s appointment. Thus, one of the first tasks taken by the IRP after his appointment is to make public announcement and invite claims from the creditors of the CD. Section 15 of the IBC and regulation 6 of the CIRP Regulations detail the information the public announcement must contain. This includes: the name and address of the CD under the CIRP; the name of the authority with which the CD is registered; the last date for submission of claim, which shall be 14 days from the date of appointment of the IRP; the details of the IRP; the classes of creditors under section 21(6A)(b) (including with regard to home buyers) and names of IPs (one to be chosen from three nominees) to act as the authorized representatives (ARs) for each class; where claim forms can be downloaded or obtained from; the penalties for false or misleading claims; and the date on which the CIRP will close. Regulation 6 of the CIRP Regulations also provides that the public announcement should be in Form A of the Schedule appended to the CIRP Regulations and shall be published: in one English newspaper and one regional language newspaper with wide circulation at the location of the registered office and principal office of the CD and in any other location which, in the opinion of the IRP, the CD conducts material business operations; on the website of the CD (if any); and on the website of the IBBI The cost of the public announcement is to be borne by the applicant who made the application to the AA for initiating the CIRP. Such costs may be reimbursed by the CoC to the extent that they are ratified. To the extent ratified, these costs also form part of the insolvency resolution process costs As per Section 18(1)(c) constitute a committee of creditors ; Section 21 provides that the IRP shall constitute a CoC after collating all claims received against the CD and determining the financial position of the CD. As per Section 18(1)(d) monitor the assets of the corporate debtor and manage its operations until a resolution professional is appointed by the committee of creditors; As per Section 18(1)(e) file information collected with the information utility, if necessary; and As per Section 18(1)(f) take control and custody of any asset over which the corporate debtor has ownership rights as recorded in the balance sheet of the corporate debtor, or with information utility or the depository of securities or any other registry that records the ownership of assets including- (i) assets over which the corporate debtor has ownership rights which may be located in a foreign country; (ii) assets that may or may not be in possession of the corporate debtor; (iii) tangible assets, whether movable or immovable; (iv) intangible assets including intellectual property; (v) securities including shares held in any subsidiary of the corporate debtor, financial instruments, insurance policies; (vi) assets subject to the determination of ownership by a court or authority; As per Section 18(1)(g) to perform such other duties as may be specified by the Board. Explanation .-For the purposes of this section, the term assets shall not include the following, namely:- (a) assets owned by a third party in possession of the corporate debtor held under trust or under contractual arrangements including bailment; (b) assets of any Indian or foreign subsidiary of the corporate debtor; and (c) such other assets as may be notified by the Central Government in consultation with any financial sector regulator