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TMI BlogInsolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the Official Gazette and shall apply to corporate insolvency resolution processes commencing on or after the said date. 2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 2, in sub-regulation (1), after clause (a) , the following clause shall be inserted, namely: - (aa) class of creditors means a class with at least ten financial creditors under clause (b) of sub-section (6A) of section 21 and the expression, creditors in a class shall be construed accordingly. . 3 . In the principal regulations , in regulation 3 , - (a) in sub-regulation (1), in clause (c), in sub-clause (ii), for the words ten per cent , the words five per cent shall be substituted; (b) after sub-regulation (1), the following sub-regulation shall be inserted, namely:- (1A) Where the committee decides to appoint the interim resolution professional as resolution professional or replace the interim resolution professional under section 22 or replace the resolution professional under section 27, it shall obtain the written conse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. Claims by creditors in a class. (1) A person claiming to be a creditor in a class shall submit claim with proof to the interim resolution professional in electronic form in Form CA of the Schedule. (2) The existence of debt due to a creditor in a class may be proved on the basis of- (a) the records available with an information utility, if any; or (b) other relevant documents, including any- (i) agreement for sale; (ii) letter of allotment; (iii) receipt of payment made; or (iv) such other document, evidencing existence of debt. (3) A creditor in a class may indicate its choice of an insolvency professional, from amongst the three choices provided by the interim resolution professional in the public announcement, to act as its authorised representative. . 9. In the principal regulations , in regulation 9 , in sub-regulation (1) and (2), for the words, proof of claim , the words claim with proof shall respectively be substituted; 10. In the principal regulations , in regulation 9A, in sub-regulation (1) , for the words, proof of its claim , the words its claim with proof shall be substituted. 11. In the principal regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de electronic means of communication between the authorised representative and the creditors in the class. (7) The voting share of a creditor in a class shall be in proportion to the financial debt which includes an interest at the rate of eight per cent per annum unless a different rate has been agreed to between the parties. (8) The authorised representative of creditors in a class shall be entitled to receive fee for every meeting of the committee attended by him in the following manner, namely: - Number of creditors in the class Fee per meeting of the committee (Rs.) 10-100 15,000 101-1000 20,000 More than 1000 25,000 (9) The authorised representative shall circulate the agenda to creditors in a class and announce the voting window at least twenty-four hours before the window opens for voting instructions and keep the voting window open for at least twelve hours. 16B. Committee with only creditors in a class. Where the corporate debtor has only creditors in a class and no other financial credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not vote at the meeting on the matters listed for voting, by electronic voting system in accordance with regulation 26 where the voting shall be kept open for twenty-four hours from the circulation of the minutes, for. . 16. In the principal regulations , in regulation 26, sub-regulation (2) shall be omitted. 17. In the principal regulations , in regulation 27 , for the words, seven days of his appointment , the words seven days of his appointment, but not later than forty-seventh day from the insolvency commencement date shall be substituted. 18. In the principal regulations , in regulation 29, in sub-regulation (2) , for the words, approval of the committee , the words approval of the committee by a vote of sixty-six per cent of voting share of the members shall be substituted. 19. In the principal regulations , after regulation 30 , the following regulation shall be inserted, namely: - 30A. Withdrawal of application. (1) An application for withdrawal under section 12A shall be submitted to the interim resolution professional or the resolution professional, as the case may be, in Form FA of the Schedule before issue of invitati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in electronic form to each member of the committee within two weeks of his appointment, but not later than fifty-fourth day from the insolvency commencement date, whichever is earlier. (b) in sub-regulation (4), the words or a prospective resolution applicant shall be omitted; 23. In the principal regulations , for regulation 36A , the following regulation shall be substituted, namely: - 36A. Invitation for expression of interest. (1) The resolution professional shall publish brief particulars of the invitation for expression of interest in Form G of the Schedule at the earliest, not later than seventy-fifth day from the insolvency commencement date, from interested and eligible prospective resolution applicants to submit resolution plans. (2) The resolution professional shall publish Form G- (i) 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 resolution professional, the corporate debtor conducts material business operations; (ii) on the website, if any, of the corporate d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest is true and correct and discovery of any false information or record at any time will render the applicant ineligible to submit resolution plan, forfeit any refundable deposit, and attract penal action under the Code; and (g) an undertaking by the prospective resolution applicant to the effect that it shall maintain confidentiality of the information and shall not use such information to cause an undue gain or undue loss to itself or any other person and comply with the requirements under sub-section (2) of section 29. (8) The resolution professional shall conduct due diligence based on the material on record in order to satisfy that the prospective resolution applicant complies with- (a) the provisions of clause (h) of sub-section (2) of section 25; (b) the applicable provisions of section 29A, and (c) other requirements, as specified in the invitation for expression of interest. (9) The resolution professional may seek any clarification or additional information or document from the prospective resolution applicant for conducting due diligence under subregulation (8). (10) The resolution professional shall issue a provisional list of eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not satisfactory, subject to the condition that the request is made to all prospective resolution applicants in the final list: Provided that provisions of sub-regulation (3) shall not apply for submission of resolution plans under this sub-regulation. . 25. In the principal regulations , in regulation 37, after clause (c), the following clause shall be inserted, namely: - (ca) cancellation or delisting of any shares of the corporate debtor, if applicable; . 26. In the principal regulations , in regulation 38 , - (a) in sub-regulation (1), in clause (a), for the words, insolvency resolution process costs will be paid , the words insolvency resolution process costs, to the extent unpaid, will be paid shall be substituted; (b) for sub-regulation (3), the following sub-regulation shall be substituted, namely: - (3) A resolution plan shall demonstrate that (a) it addresses the cause of default; (b) it is feasible and viable; (c) it has provisions for its effective implementation; (d) it has provisions for approvals required and the timeline for the same; and (e) the resolution applicant has the capability to implement the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... professional is appointed on the date of commencement of the process and the time available is hundred and eighty days: Section / Regulation Description of Activity Norm Latest Timeline Section 16(1) Commencement of CIRP and appointment of IRP . T Regulation 6(1) Public announcement inviting claims Within 3 Days of Appointment of IRP T+3 Section 15(1)(c) / Regulations 6(2)(c) and 12 (1) Submission of claims For 14 Days from Appointment of IRP T+14 Regulation 12(2) Submission of claims Up to 90 th day of commencement T+90 Regulation 13(1) Verification of claims received under regulation 12(1) Within 7 days from the receipt of the claim T+21 Regulation 13(2) Verification of claims received under regulation 12(2) T+97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 54 th day of commencement T+54 Regulation 36A Publish Form G Within 75 days of commencement T+75 Invitation of EoI Submission of EoI At least 15 days from issue of EoI (Assume 15 days) T+90 Provisional List of RAs by RP Within 10 days from the last day of receipt of EoI T+100 Submission of objections to provisional list For 5 days from the date of provisional list T+105 Final List of RAs by RP Within 10 days of the receipt of objections T+115 Regulation 36B Issue of RFRP, including Evaluation Matrix and IM Within 5 days of the issue of the provisional list T+105 Receipt of Resolution Plans At least 30 days from issue of RFRP (Assume 30 days) T+135 Regulation 39(4) Submission of CoC approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. Classes of creditors, if any, under clause (b) of sub-section (6A) of section 21, ascertained by the interim resolution professional Name the class(es) 13. Names of Insolvency Professionals identified to act as Authorised Representative of creditors in a class (Three names for each class) 1. 2. 3. 14. Relevant Forms and Details of authorized representatives are available at: Web link: .. Physical Address: . Notice is hereby given that the National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process of the [name of the corporate debtor] on [insolvency commencement date]. The creditors of [name of the corporate debtor], are hereby called upon to submit their claims with proof on or before [insert the date falling fourteen days from the appointment of the interim resolution professional] to the interim resolution professional at the address mentioned against entry No. 10. The financial creditors shall submit their claims with proof b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Role as No. of Processes on the date of Consent 1 Interim Resolution Professional 2 Resolution Professional of a. Corporate Debtors b. Individuals 3 Liquidator of a. Liquidation Processes b. Voluntary Liquidation Processes 4 Bankruptcy Trustee 5 Authorised Representative 6 Any other (Please state) (Signature of the insolvency professional) Registration No. ....... Date: Place: FORM AB WRITTEN CONSENT TO ACT AS AUTHORISED REPRESENTATIVE (Under Regulation 4A(3) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016) [Date] From [Name of the insolvency professional] [Registration number of the insolvency professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... address of its registered office and principal office] To The Interim Resolution Professional / Resolution Professional, [Name of the Insolvency Resolution Professional / Resolution Professional] [Address as set out in public announcement] Subject: Submission of claim and proof of claim. Madam/Sir, [Name of the financial creditor], hereby submits this claim in respect of the corporate insolvency resolution process of [name of corporate debtor]. The details for the same are set out below: Relevant Particulars 1. Name of the financial creditor 2. Identification number of the 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) 3. Address and email address of the financial creditor for correspondence 4. Total amount of claim (including any interest as at the insolvency commenceme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debts, or other mutual dealings between the corporate debtor and the creditor which may be set-off against the claim]. 5. I am / I am not a related party of the corporate debtor, as defined under section 5 (24) of the Code. 6. I am eligible to join committee of creditors by virtue of proviso to section 21 (2) of the Code even though I am a related party of the corporate debtor. Date: Place: (Signature of the claimant) VERIFICATION I, [Name] the claimant hereinabove, do hereby verify that the contents of this proof of claim 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 claimant) [Note: In the case of company or limited liability partnership, the declaration and verification shall be made by the director/manager/secretary/designated partner and in the case of other entities, an officer authorised for the purpose by the entity.] FORM CA SUBMISSION OF CLAIM BY FINANCIAL CREDITORS IN A CLASS (Under Regulation 8A of the Insolvency and Bankruptcy (Insolvency Resolution Process for Corporate Persons) Regulations, 2016) [Date] From ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts behalf [Please enclose the authority if this is being submitted on behalf of the financial creditor] Name in BLOCK LETTERS Position with or in relation to creditor Address of person signing *PAN number, passport, AADHAAR Card or the identity card issued by the Election Commission of India. DECLARATION I, [Name of claimant], currently residing at [insert address], do hereby declare and state as follows: - 1. [Name of corporate debtor], the corporate debtor was, at the insolvency commencement date, being the ..day of ..20 ., actually indebted to me for a sum of Rs. [insert amount of claim]. 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 claim]. 3. The said documents are true, valid and genuine to the best of my knowledge, information and belief and no material facts have been concealed therefrom. 4. 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, had or received any manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. I authorize the resolution professional to file this application of withdrawal with the Adjudicating Authority on my behalf, if it is approved by the Committee of Creditors with ninety percent voting power. 5. I attach the required bank guarantee towards estimated cost incurred for purposes of regulation 31(c) and (d) till the date of application. (Signature of the applicant) Date: Place: [Note: In the case of company or limited liability partnership, the declaration and verification shall be made by the director/manager/secretary/designated partner and in the case of other entities, an officer authorized for the purpose by the entity] ; (d) for Form G , the following Forms shall be substituted, namely: - FORM G INVITATION FOR EXPRESSION OF INTEREST (Under Regulation 36A (1) of the Insolvency and Bankruptcy (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 RELEVANT PARTICULARS 1. Name of the corporate debtor 2. Date of incorporation of corporate debtor 3. Authority under whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r correspondence with the resolution professional 22. Further Details are available at or with 23. Date of publication of Form G Signature of the Resolution Professional Registration Number of the Resolution Professional Registered Address of the Resolution Professional For (Name of the Corporate Debtor) (Date and Place) FORM H COMPLIANCE CERTIFICATE (Under Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 I, [Name of the resolution professional], an insolvency professional enrolled with [name of insolvency professional agency] and registered with the Board with registration number [registration number], am the resolution professional for the corporate insolvency resolution process (CIRP) of [name of the corporate debtor (CD)]. 2. The details of the CIRP are as under: Sl. No. Particulars Description 1 Name of the CD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Applicant ( ..) has submitted an affidavit pursuant to section 30(1) of the Code confirming its eligibility under section 29A of the Code to submit resolution plan. The contents of the said affidavit are in order. (iii) the said Resolution Plan has been approved by the CoC in accordance with the provisions of the Code and the CIRP Regulations made thereunder. The Resolution Plan has been approved by [state the number of votes by which Resolution Plan was approved by CoC] % of voting share of financial creditors after considering its feasibility and viability and other requirements specified by the CIRP Regulations. (iv) The voting was held in the meeting of the CoC on [state the date of meeting] where all the members of the CoC were present. or I sought vote of members of the CoC by electronic voting system which was kept open at least for 24 hours as per the regulation 26. [strike off the part that is not relevant] 5. The list of financial creditors of the CD [state the name of CD] being members of the CoC and distribution of voting share among them is as under: Sl. No. Name of Creditor Voting Share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stimated value of non-cash components. It is not NPV. 8. The interests of existing shareholders have been altered by the Resolution plan as under: Sl. No Category of Share Holder No. of Shares held before CIRP No. of Shares held after the CIRP Voting Share (%) held before CIRP Voting Share (%) held after CIRP 1 Equity 2 Preference 3 9. The compliance of the Resolution Plan is as under: Section of the Code / Regulation No. Requirement with respect to Resolution Plan Clause of Resolution Plan Compliance (Yes / No) 25(2)(h) Whether the Resolution Applicant meets the criteria approved by the CoC having regard to the complexity and scale of operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the Resolution Plan provides: (a) the term of the plan and its implementation schedule? (b) for the management and control of the business of the corporate debtor during its term? (c) adequate means for supervising its implementation? 38(3) Whether the resolution plan demonstrates that (a) it addresses the cause of default? (b) it is feasible and viable? (c) it has provisions for its effective implementation? (d) it has provisions for approvals required and the timeline for the same? (e) the resolution applicant has the capability to implement the resolution plan? 39(2) Whether the RP has filed applications in respect of transactions observed, found or determined by him? 10. The CIRP has been conducted as per the timeline indicated as under: Section of the Code / Regulation No. Description of Activity Latest Timeline under regulation 40A Actual Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name of applicable Law Name of Authority who will grant Approval When to be obtained 1 2 3 12. The Resolution Plan is not subject to any contingency. or The Resolution Plan is subject to the following contingencies (Elaborate the contingencies): i ii ... 13. Following are the deviations / non-compliances of the provisions of the Insolvency and Bankruptcy Code, 2016, regulations made or circulars issued thereunder (If any deviation/ non-compliances were observed, please state the details and reasons for the same): Sl. No. Deviation/Non-compliance observed Section of the Code / Regulation No. / Circular No. Reasons Whether rectified or not 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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