Introduction: The Insolvency and Bankruptcy Board of India (IBBI) issued Circular No. IBBI/LIQ/69/2024 on February 22nd, 2024, addressing the deposit and withdrawal procedures for unclaimed dividends and undistributed proceeds under Regulation 46 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
Detailed Analysis: Regulation 46 of the Liquidation Process Regulations outlines the framework for managing unclaimed deposits and undistributed proceeds during the liquidation process. Liquidators are mandated to deposit such amounts into the Corporate Liquidation Account and inform the IBBI through Form-I of the Liquidation Regulations.
The circular elaborates on the procedure for stakeholders claiming entitlement to amounts deposited into the Corporate Liquidation Account. Upon receiving a valid request, the liquidator, following due verification, applies to the IBBI for the release of the amount for onward distribution to the stakeholder.
The issuance of this circular falls under the powers conferred by Section 196 of the Insolvency and Bankruptcy Code, 2016, ensuring regulatory compliance and facilitating the efficient management of liquidation proceedings.
Conclusion: In conclusion, IBBI Circular No. IBBI/LIQ/69/2024 provides crucial guidelines regarding the deposit and withdrawal of unclaimed dividends and undistributed proceeds during the liquidation process. By outlining procedures for stakeholders and liquidators, the circular aims to ensure transparency, accountability, and compliance with the regulatory framework established by the Insolvency and Bankruptcy Board of India. Adherence to these guidelines is essential for maintaining the integrity and effectiveness of the liquidation process.
Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi-110001
Circular No. IBBI/LIQ/69/2024 Dated: 22nd February, 2024
To
All Registered Insolvency Professionals
All Recognised Insolvency Professional Entities
All Registered Insolvency Professional Agencies
(By mail to registered email addresses and on the website of the IBBI)
Dear Madam/Sir,
Sub: Deposit and withdrawal of unclaimed dividends and / or undistributed proceeds in accordance with regulation 46 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Liquidation Regulations).
1. Regulation 46 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 provides a framework for the management of unclaimed deposits and undistributed proceeds during the liquidation process. As per the regulation, liquidators are mandated to deposit unclaimed / undistributed amounts into the Corporate Liquidation Account and inform the Insolvency and Bankruptcy Board of India (IBBI / Board) in Form-I of the Liquidation Regulations.
2. To facilitate the request received from a stakeholder, under sub-regulation (7) of regulation 46, who claims to be entitled to any amount deposited into the Corporate Liquidation Account for withdrawal before the dissolution of the corporate debtor, the liquidator, after due verification, shall apply to the Board in the form as per Annexure, for the release of the amount for onward distribution to such stakeholder.
3. This is issued in exercise of the powers conferred under section 196 of the Insolvency and Bankruptcy Code, 2016.
Yours faithfully,
-Sd-
(Rajesh Tiwari)
General Manager
Annexure
Request by liquidator for withdrawal from Corporate Liquidation Account for onward
distribution to the stakeholder under regulation 46 of the Insolvency and Bankruptcy
Board of India (Liquidation Process) Regulations, 2016.
Details of withdrawal request –
| Sl. No. | Description | Particulars |
| (1) | (2) | (3) |
| 1 | Name of the Corporate Debtor | |
| 2 | Identification Number of CD (CIN/LLPIN) | |
| 3 | Liquidation Commencement Date | |
| 4 | Date of Deposit into the Corporate Liquidation Account | |
| 5 | Acknowledgment number issued by the Board | |
| 6 | Amount (Rs.) deposited into Corporate Liquidation Account | |
| 7 | Amount (Rs.) being requested for withdrawal | |
| 8 | Name of the stakeholder to whom the amount proposed to be distributed | |
| 9 | S. No. at which name of stakeholders appeared in the list submitted to the Board | |
| 10 | Reason for non-distribution of such an amount earlier | |
| 11 | Justification for the present request | |
| 12 | Details of the account where the amount is to be refunded | |
| a. Name of the Bank
b. Account number c. Bank Name and address d. MICR e. IFSC Code (Supported by copy of cancelled cheque) |
||
I (Name of Liquidator) hereby certify that the details provided in this Form are true and correct to the best of my knowledge and belief, and nothing material has been concealed.
(Signature)
Name of the Liquidator
IP Registration No:
Address as registered with the Board:
Email id as registered with the Board:
Date:
Place:
