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    Liquidation of Cirp: Process

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    carahulsaxena2000
    1) The document compares and contrasts the processes and requirements for normal liquidation under Section 33-55 of the Insolvency and Bankruptcy Code versus voluntary liquidation under Section 59. 2) Key differences include that normal liquidation can be initiated by creditors, employees, or the adjudicating authority, while voluntary liquidation requires a declaration by company directors or partners. Normal liquidation also has more extensive reporting requirements for the liquidator. 3) Both processes require public announcements, verification and admission/rejection of claims within specified timelines, and preparation of lists of stakeholders. The liquidator must also submit preliminary and other periodic reports to the adjudicating authority and maintain

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    Liquidation of Cirp: Process

    Uploaded by

    carahulsaxena2000
    19 views4 pages
    1) The document compares and contrasts the processes and requirements for normal liquidation under Section 33-55 of the Insolvency and Bankruptcy Code versus voluntary liquidation under Section 59. 2) Key differences include that normal liquidation can be initiated by creditors, employees, or the adjudicating authority, while voluntary liquidation requires a declaration by company directors or partners. Normal liquidation also has more extensive reporting requirements for the liquidator. 3) Both processes require public announcements, verification and admission/rejection of claims within specified timelines, and preparation of lists of stakeholders. The liquidator must also submit preliminary and other periodic reports to the adjudicating authority and maintain

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    a brief presentation of liquidation under ibc

    Original Title

    Liquidation

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    1) The document compares and contrasts the processes and requirements for normal liquidation under Section 33-55 of the Insolvency and Bankruptcy Code versus voluntary liquidation under Section 59. 2) Key differences include that normal liquidation can be initiated by creditors, employees, or the adjudicating authority, while voluntary liquidation requires a declaration by company directors or partners. Normal liquidation also has more extensive reporting requirements for the liquidator. 3) Both processes require public announcements, verification and admission/rejection of claims within specified timelines, and preparation of lists of stakeholders. The liquidator must also submit preliminary and other periodic reports to the adjudicating authority and maintain

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    19 views4 pages

    Liquidation of Cirp: Process

    Uploaded by

    carahulsaxena2000
    1) The document compares and contrasts the processes and requirements for normal liquidation under Section 33-55 of the Insolvency and Bankruptcy Code versus voluntary liquidation under Section 59. 2) Key differences include that normal liquidation can be initiated by creditors, employees, or the adjudicating authority, while voluntary liquidation requires a declaration by company directors or partners. Normal liquidation also has more extensive reporting requirements for the liquidator. 3) Both processes require public announcements, verification and admission/rejection of claims within specified timelines, and preparation of lists of stakeholders. The liquidator must also submit preliminary and other periodic reports to the adjudicating authority and maintain

    Copyright:

    © All Rights Reserved
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    of 4

    Liquidation of process

    CIRP
    Process Normal liquidation (sec 33-55) voluntary liquidation (sec 59)

    • when the AA do not receive a RP after expiry of max time under


    • A corporate person who has not committed any
    default
    sec 12 or sec 56 (fast track process) or if it rejects the plan so
    received
    • declaration from majority of directors/designated
    partners in LLP or persons forming part of governing
    when • where the RP informs the AA before expiry of time a resolution
    board that they have made enquiry that the company
    passed by 66 % of COC that the CD be liquidated
    has no debt or if there are debt then they can be paid
    • where the Plan is contravened by CD any person other than CD
    from proceeds and the liquidation is not made to
    applies to AA for liquidation
    defraud any person
    • AFAccounts and record of business operations for
    last 2 years
    not applicable since the process happens automatically as opposed • a valuation report if any
    documents required to voluntary liquidation • within 4 weeks of declaration there shall be special
    resolution of the co in general meeting
    • 2/3 rd of debtors shall approve the resolution

    • the RP appointed under chapter II (RP for CD) shall subject to


    consent in writing be appointed as liquidator unless replaced
    what happens when AA passes
    • AA can replace the RP so appointed if the RP was rejected for
    • a copy of order be forwarded to registering authority
    order under sec 33 (4) above or failure under sec 30 or if no written consent is obtained
    within 14 days
    59(8) • for replacement AA shall direct to board for alternate name who
    • sec 35 to 53 be applicable for liquidation
    shall propose new name in 10 days which AA shall appoint

    • Public notice in form B


    • Public notice in form A
    • Form A consultation with stakeholders
    • Operational Creditor Form B
    • Operational Creditor Form C • FC form C
    which form applicable • FC form D • Workman Form D
    • Workman Form E • AR of workman Form E
    • AR of workman Form F • other Creditors Form F
    • other Creditors Form G
    IBBI part applicable Part II chapter III Part II Chapter V

    Three Sch-I mode of sale Two Schedules Sch I Forms


    Schedule Sche –II forms ,Sch III Records Sch-II Records
    Process Normal liquidation voluntary liquidation

     preliminary report
     preliminary report
     an asset memorandum
     Annual Status Report
    liquidator to prepare and
     progress report (s)
     minutes of consultation with stakeholders
    submit
     sale reports
     final report prior to dissolution
     minutes of consultation with stakeholders
     the reports shall be kept for 8 years
     final report prior to dissolution
     the reports shall be kept for 8 years

    Public announcement 5 days of appointment 5 days of appointment

    last date for submission of


    • 30 days from liquidation commencement date • 30 days from liquidation commencement
    claims date

    to AA within 45 days from LQDate


    Preliminary report to AA within 75 days from LQDate

    first report within 15 days of the qtr of


    Progress report appointment and afterwards 15 days at the end na
    of every quarter
    Process Normal liquidation voluntary liquidation
    30 days from last date of filing the claims 30 days from last date of filing the claims
    verification of claims –sec 39 in notice in notice

    Admission or rejection of Either accept or reject the claim and Either accept or reject the claim and
    claims-sec 40 intimate to to creditor and CD in 7 days intimate to to creditor and CD in 7 days

    after verification of claim a list of after verification of claim a list of


    stakeholders be prepared and filed with stakeholders be prepared and filed with
    List of stakeholders AA within 45 days from last date of filing AA within 45 days from last date of filing
    of claims of claims
    whenever the liquidator comes across whenever the liquidator comes across
    modification of list additional info warranting modification he additional info warranting modification he
    can modify can modify
    after liquidation estate u/s 36 is formed
    an asset memorandum is formed within
    Asset memorandum 75 days of LCDate along with preliminary
    not applicable
    report

    records/reports in liquidation • Final report on completion • Final report on completion


    completion 2 years 12 month

    shall hold a meeting of contributories


    Liquidator to apply AA to continue with within 15 days from the end of 12 months
    Extension of time reason from the LCDate and at the end of
    succeeding 12 months till the dissolution

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