3208, 2nd Floor, Mahindra Park, Fountain Chowk, Near Pitampura, Delhi 110034

FAQ

WORKING FLOW

Giving Direction to Your Dream

For result oriented work, we follow specific guidelines, approaches and implementation to which give directions to your business dreams.

NEWS CORNER

Ip Support News And Insights

Get updated with our latest current affairs and news for the best knowing of us. Get knowledge of business regarding basics too.

Corporate Insolvency Resolution Process (“CIRP”) is a process during which an resolution professional is appointed as Interim Resolution Professional (“IRP”) / Resolution Professional (“RP”) to manage the affairs of the Company as a going concern and invites prospective lenders, investors and any other persons to put forward their resolution plans in order to explore the possibility of having a resolution by way of restructuring or other possible modes to revive the Company. CIRP period continues for a period of 180 days commencing from the date of admission of application for initiating CIRP by the National Company Law Tribunal (“NCLT”) which may be further extended for a further period of 90 days (180 + 90 = 270 days) in accordance with the provisions of the Code

From the date of appointment of IRP, the management of affairs of the Company shall vest with IRP, the power of the board of directors shall stand suspended and be exercised by IRP. All personnel of the Company, its promoters and persons associated with the management of the Company shall extend all assistance and cooperation to the IRP, as may be required by him; and officers and managers of the Company shall report to the IRP. The IRP will endeavour to manage the operations of the Company as a going concern.

The major functions of IRP/RP inter alia include the following:
1. Protection and preservation of the value of property of the corporate debtor and maintenance of its operations as a going concern.
2. To collect all information relating to the assets, finances and operations of the Company for determining the financial position of the Company and take control and custody of assets of the Company as per the Code.
3. Receive, collate & verify claims submitted by creditors, pursuant to public announcements published on 17th October 2019 (for “PVS”)
4. constitute Committee of Creditors (“CoC”) for the Corporate Debtor & prepare list of creditors
5. prepare an information memorandum
6. invite prospective lenders, investors, and any other persons, through publication of Expressions of Interest / Notice of Invitation or otherwise, to submit resolution plans (if any).

The CIRP shall commence from the date of admission of application filed by financial creditor/operational creditor/corporate applicant, by the Adjudicating Authority (being NCLT). In case of {name of corporate debtor}, the date of commencement of CIRP is ______________

The commencement date of the CIRP is significant because all proof of claims submitted by the creditors of the corporate debtor are required to be for the period prior to the insolvency commencement date. Further, on and from the insolvency commencement date, the NCLT declares a moratorium on the corporate debtor which lasts till the time the resolution plan is approved by the NCLT or an order for liquidation is passed against the corporate debtor.

A public announcement has been duly made for the attention of creditors of {Name of corporate debtor}?in accordance with the provisions of the IBC and the regulations made thereunder, notifying the creditors that the National Company Law Tribunal (“NCLT”), , has ordered the commencement of CIRP against {Name of corporate debtor}?on ___________ and that the creditors may submit their respective proofs of claim against {Name of corporate debtor}?to the interim resolution professional (“IRP”).

The creditors of PVS are requested to submit a proof of their claims on or before October, 30, 2019 in the prescribed form, to the Interim Resolution Professional (“IRP”) at the address given below through (i) electronic means only (if you are a financial creditor), and (ii) in person, by post or by electronic means (if you are a operational creditor or have a claim otherwise than as a financial Creditor)

  • NAME:
  • ADDRESS:
  • EMAIL ADDRESS .
  • REGISTRATION NO.:
The proof of claims is to be submitted by way of specified forms and relevant documentary proof in support of the claim, as prescribed under Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The forms can be downloaded from the website http://ibbi.gov.in/downloads (Insolvency and Bankruptcy Board of India). Alternatively, you can also submit your claims online by clicking on the links set out below. After completing the information in the claim form, you will be able to print it. You are required to submit a scanned copy of the signed and printed form and documentary proof in support of your claim to the IRP in person, by post or by electronic means (if you are an operational creditor) and by electronic means only (if you are a financial creditor) at the address mentioned above. Submission of online claims will assist with efficient coordination and correspondence.

Please find below the link for online submission of claim form:

  • 1. Form B - Click here for accessing online claim form for operational creditors (except workmen or employees).
  • 2. Form C- Click here for accessing online claim form for financial creditors.
  • 3. Form D- Click here for accessing online claim form for workmen or employees.
  • 4. Form E- Click here for accessing online claim form for authorised representative of workmen and employees.
  • 5. Form F- Click here for accessing online claim form for creditors other than financial creditors and operational creditors.

Please find below an indicative list of supporting documentary evidence. This will reduce ambiguity and enable prompt admission of claims.

Operational Creditor

  • Authorized contract / purchase order for the supply of goods and/or services
  • Proof of delivery/ work completion certificate
  • Invoices
  • Ledger statement of
    {Name of corporate debtor}?
    in your books indicating outstanding receivables
  • Order of a court or tribunal that has adjudicated upon the non-payment of a debt

Financial Creditor

  • Financial contract supported by financial statements as evidence of the debt
  • Records evidencing that the amounts committed by the financial creditor to the corporate debtor under a facility has been drawn by the corporate debtor
  • Financial statements showing that the debt has not been repaid
  • Order of a court or tribunal that has adjudicated upon the non-payment of a debt
  • Employees/Workmen

  • Copy of letter evidencing the date of appointment and terms and conditions of employment
  • Copy of relieving letter/ termination.
  • Copy of bank statement evidencing the dues.
  • Any other document to substantiate the claim amount

  • Click here to see the indicative list of supporting documents that can be submitted along with the claim forms are given in the here.

    Yes. Your claims will not be acknowledged until the receipt of a completed appropriate form along with signed affidavit and relevant supporting documents, as prescribed under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

    In the absence of documentary evidence proving your claim, you are not barred from submitting a proof of claim. However, in such cases we strongly advice that you seek independent legal advice before submitting the claim thereof (if any).

    If you are an authorised representative of workmen and/employees of the Corporate Debtor(s), you shall file proof of claim for and on behalf of the workmen and employees in Form E along with the duly notarised affidavit/ declaration and other documentary evidence in support of proof of claim, provided under the Schedule of CIRP Regulations and submit it to the IRP of the Corporate Debtor, in person, by post or by electronic means.

    It is made explicitly clear that mere submission of the claim does not by itself guarantee the payment. The payments will be made as per the resolution plan approved by the Committee of Creditors of the Corporate Debtor(s), and further by NCLT, including any modifications thereof, and all payments shall be dealt with in accordance with the provisions of the Code

    Yes, the IRP, as the case may be, may call for such evidence or clarifications from the creditors, as he deems fit in order to substantiate /verify the whole or part the claim.

    All claims should be as of ____________

    The claims are for creditors only. However, you may want to consult your own advisors and/or legal counsel, in order to determine if you could make a claim.

    As you may be aware, PVS Memorial Hospital Private Limited has faced several external challenges which had an adverse impact on its profitability and ability to repay debt. The Kochi bench of NCLT ordered the initiation of CIRP on October, 16, 2019 based on the insolvency petition application filed by Operational Creditors. The objective of the CIRP is to facilitate a sustainable resolution plan for the company. Till such time as a resolution plan is approved by the NCLT, the IRP (and the resolution professional) is duty bound to run the operations of PVS as a going concern in furtherance of which PVS is entitled to continue contracting with you. Further, any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern will be categorized as ‘insolvency resolution process costs’ under the IBC and will be accorded higher priority in payment in any resolution plan and on liquidation.We wish to place on record the unstinted support which we have and are receiving from our valued suppliers like you and look forward to the same during the CIRP and beyond.

    The website of {Name of corporate debtor}is not active and hence the IRP is unable to update the status of the claims in the website. However, for providing update to the claimants , the updates on the status of claims received is hosted on the webpage of the Resolution Professional. You may access the link to confirm the status of your claim. Click here to see the status of Claims

    No, if you have already submitted the claims through hard copy, you are not required to submit the online claim form. However, if you are a financial creditor, your form and the supporting documents should have been received by electronic means.

    Yes. After completing the information in the claim form available online, you should print it. You are required to submit a scanned copy of the signed and printed form and documentary proof in support of your claim to the IRP in person, by post or by electronic means (if you are an operational creditor) and by electronic means only (if you are a financial creditor) at the address mentioned above. The address to which the documents to be forwarded is given in FAQ #6

    As per Regulation 12 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) a creditor who fails to submit proof of claim within stipulated time in the public announcement, may submit such proof of claim to the IRP / RP before the resolution plan is approved by the Committee of Creditors.

    The submission of a claim is supported by your declaration and verification that the particulars are true and correct. Please evaluate the serious implications of doing so. Your claim forms the basis of the RP computing the liquidation value of the assets and liabilities of the Corporate Debtor, preparation of resolution plan etc. Therefore, you must ensure that the particulars submitted by you are true and correct.

    The claims of creditors which are denomination in foreign currency shall be valued in Indian currency at the official exchange rate which is the reference rate published by the Reserve Bank of India or derived from such reference rate, as on the date of the commencement of the CIRP of the respective Corporate Debtors.

    As per preamble to the Code, the purpose of this Code is as follows:-

    • To consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
    • To maximize the value of assets of interested persons.
    • To promote entrepreneurship • To promote availability of credit.
    • To balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues.
    • To establish an Insolvency and Bankruptcy Board of India as a regulatory body for insolvency and bankruptcy law.

    As per Section 3(11) of the Code, debt means a liability or obligation in respect of a claim which is due from any person and includes a financial debt and operational debt

    As per Section 5(8) of the Code, financial debt means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes:-

    • Any money borrowed against the payment of interest.
    • Any amount raised by acceptance under any acceptance credit facility or its de-materialised equivalent.
    • Any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument.
    • The amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other accounting standards.
    • Any receivables sold or discounted other than any receivables sold on non-recourse basis.
    • Any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing.
    • Any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account.
    • Any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution.
    • The amount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in above clauses.

    As per Section 5(21) of the Code, operational debt means a claim in respect of

    • Provision of goods; or
    • Provision of services including employment; or
    • a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority.

    Yes. As per Regulation 12(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, a Creditor shall submit the Claim of proof on or before last date mentioned in the public announcement. (ie On or before _______________). However Regulation 12(2) of the said regulation provides that a creditor, who fails to submit claim with proof within the time stipulated in the public announcement, may submit the claim with proof to the interim resolution professional or the resolution professional, as the case may be, on or before the ninetieth day of the insolvency commencement date.
    In view of the above a claimant shall have to submit their claim in Form D under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 along with adequate proof on or before __________.

    If in case they were unable to submit the claim within the said period, they will be able to submit claim with proof on or before ninetieth day of the insolvency commencement date (ie 21st January, 2020).