Filing a claim before a Resolution Professional (RP) in a Corporate Insolvency Resolution Process (CIRP) is a crucial step for creditors under the Insolvency and Bankruptcy Code, 2016 (Code). This article provides detailed insights into the process and regulations governing claim submissions in CIRP.
When the application under Section 7 (Financial Creditor) or Section 9 (Operational Creditor) or Section 10 (‘Corporate Debtor’) is admitted by the Adjudicating Authority (‘National Company Law Tribunal/NCLT’), Section 13 of the Insolvency and Bankruptcy Code, 2016 (‘Code’) imposes an obligation on the Adjudicating Authority through order-
– to declare a moratorium referred in section 14;
– cause a public announcement of initiation of CIRP and call for the submission of claims under section 15; and
– appoint an Interim Resolution Professional in manner as laid down in Section 16.
In pursuance to the aforesaid Section 13 of the Code and as per the order of the Adjudicating Authority, claims shall be called in the manner laid down under Section 15 of the Code.
Further, Section 15 of the Code imposes an obligation to make a public announcement (PA) of CIRP which shall contain the particulars including the last date of submission of claims as may be prescribed and details of Interim Resolution Professional (IRP) who shall be responsible for receiving claims. In particulars, the PA shall include information relevant to creditors such as the last date for the submission of claims and details of the IRP responsible for receiving claims.
CHAPTER III (PUBLIC ANNOUNCEMENT) has been prescribed under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016 (‘CIRP Regulations’) for making a public announcement (Regulation 6) and communication of the same to the creditors (Regulation 6A).
Regulation 6 imposes an obligation on IRP to make a PA of CIRP, not later than three days from the date of his appointment. As per this Regulation, PA shall provide the last date for submission of proofs of claim, which shall be fourteen days (14) from the date of appointment of the IRP.
Regulation 6A imposes further obligation on IRP to send a communication with a copy of PA to all the creditors as per the last available books of accounts of the Corporate Debtor (CD) through post or electronic means. Further, in case where it is not possible to send a communication to creditors, the PA shall be deemed to be communicated to such creditors.
According to the Code, the concept of ‘Claim’ comes after the commencement of the CIRP from the date of appointment of the Interim Resolution Professional (IRP). After the appointment of the IRP, he has to make a PA inviting claims from the creditors within 3 three days of the commencement of the CIRP. Following the publication of the PA, creditors must submit claims to the IRP on or before the last date of submission specified in the public announcement, which cannot be more than 14 days from the date of publication.
In view of the foregoing, the creditors have to file their ‘proof of claims’ before the IRP within the time period prescribed.
CHAPTER IV (PROOF OF CLAIMS) has been prescribed under CIRP Regulations to file the claim before IRP by different categories of creditors.
Claims by Operational Creditors (Regulation 7): –
An Operational Creditor (other than workmen and employees) may submit a claim with proof to the IRP in person, by post or by electronic means in FORM-B. The Operational Creditor will be expected to give information such as the Operational Creditor’s name, identification proof, and address, as well as the entire amount of the claim and supporting documentation. If there is a pending dispute with the Corporate Debtor, the Operational Creditor must submit specifics.
Claims by Financial Creditors (Regulation 8):-
A Financial Creditor (other than a financial creditor belonging to class of creditors) may submit a claim with proof to the IRP in Electronic form in FORM C. The Financial Creditor will be expected to give information such as the Financial Creditor’s name, identification proof, and address, as well as the entire amount of the claim and supporting documentation.
Claims by Creditors in Class [including Homebuyers] (Regulation 8A):-
A Class of Creditor may submit their claim in Electronic form in FORM CA to the IRP. The Class of Creditors will be asked to supply information such as their name, proof of identification, and the Financial Creditor’s address, as well as the entire amount of the claim and supporting papers. The documents include Agreement to Sell, a Letter of Allotment, a Receipt of Payment, Recovery Certificate, and so on. The Class of Creditor must also select an insolvency professional to act as its Authorised Representative from the three options supplied by the IRP in the PA.
Further, it is to be noted that 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. (Refer Regulation 16A(7)]
Claims by Workmen and Employees (Regulation 9):-
A workmen or employee may submit their claim to the IRP in person, by post or by electronic means in FORM-D. If there are a large number of employees or workers, an Authorized Representative may submit one claim with proof for all such dues on their behalf in FORM E.
Claims by other Creditors (Regulation 9A):-
A person claiming to be a creditor (other than those covered u/r 7,8,8A or 9] may submit its claim with proof to IRP/RP in person, by post or by electronic means in FORM-F.
SUMMARIZED POSITION
| Sr. No. | Creditors | Form | Under Regulation | Mode of Submission | Options |
| 1 | Operational Creditors except workmen and employees | Form B | Regulation 7 | In person, by post or by electronic means | Three |
| 2 | Financial Creditors | Form C | Regulation 8 | *in Electronic form | One |
| 3 | Financial Creditors in Class | Form CA | Regulation 8A | *in Electronic form | One |
| 4 | Workman or an Employee | Form D | Regulation 9 | In person, by post or by electronic means | Three |
| 5 | Authorised Representative of Workmen and Employees | Form E | Regulation 9 | In person, by post or by electronic means | Three |
| 6 | Creditors (other than those covered u/r 7,8,8A or 9) | Form F | Regulation 9A | In person, by post or by electronic means | Three |
* ‘Electronic form’ shall have the meaning assigned to it in the Information Technology Act, 2000 [Regulation 2(1)(g)]
Conclusion: Filing a claim before a Resolution Professional in a CIRP is a structured process governed by the Insolvency and Bankruptcy Code and associated regulations. It is imperative for creditors to understand their obligations and follow the prescribed procedures for claim submissions to ensure their interests are duly considered during the resolution process. Adherence to these regulations facilitates transparency, efficiency, and fairness in the insolvency resolution framework, ultimately contributing to the success of the resolution process and the protection of stakeholders’ rights.
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