TIMELINES & COMPLIANCES UNDER IBC, 2016 AND OTHER LAWS DURING ‘CORPORATE INSOLVENCY RESOLUTION PROCESS’ (CIRP).
Corporate Insolvency Resolution Process is a process laid down in the Code (Insolvency & Bankruptcy Code, 2016) for reviving the company (here: corporate debtor) from its state of insolvency.
CIRP under IBC can be initiated even if default is willful, i.e. when the corporate debtor has the ability to pay, yet chooses not to pay. Therefore, under IBC, the main point is “default” of a payment obligation.
The objectives of the Code, as stated in its Preamble include “reorganisation and insolvency resolution” which implies that the idea is to revive and not liquidate. When a company falls into insolvency, the first step is to try and resolve and not liquidate. An application for CIRP can be filed by a financial creditor, an operational creditor or the corporate debtor itself.
During the CIRP the INSOLVENCY PROFESSIONAL need to ensure timelines & compliances under the Insolvency & Bankruptcy Code, 2016 rules & regulations made thereunder, Companies Act, 2013 & CGST Act, 2017 apart from this there are separate compliances of IBBI and IPA which are also required to be complied.
Timelines & Compliances under various laws during CIRP
Sl. No. |
Section / Regulation /Form/ Circular |
Description of Activity |
Norm |
Timeline |
Plateform to be filed |
Remarks |
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1. |
IP-1 |
Consent to accept assignment as IRP, the details of IP and the Applicant, the details of the person which will undergo the process, terms of consent, terms of engagement, etc. |
Within three days of signing of Form-2/Form AA |
– |
To be filed to IBBI |
Form-2 is the written communication from the insolvency professional for appointment as an interim resolution professional |
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2. |
Section 16(1) |
Commencement of CIRP and appointment of IRP |
T |
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3. |
Regulation 6(1) |
Public announcement (Form A) inviting claims PA in one English and one regional language newspaper |
Within 3 Days of Appointment of IRP |
T+3 |
To be issued in 2 newspaper |
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4. |
Pursuant to section 13 and Regulation 6(1) |
Time based Disclosure:Public announcement (Form A) inviting claimsPA in one English and one regional language newspaper |
Within 7 Days of Appointment of IRP |
T+7 |
Disclosure to be made to IPA by IRP |
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5. |
IBBI CIRCULAR No. IP/005/2018 dated 16.01.2018 |
Relationship Disclosure:An insolvency professional shall disclose his relationship**, if any, with (i) the Corporate Debtor. |
Disclosure to be made within three days of his appointment. |
T+3 |
Disclosure to be made to IPA |
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6 |
CIRP 1 |
This includes details of IRP, CD, and the Applicant; admission of application by AA; public announcement; details of suggested Authorized Representatives;non-compliances with the provisions of the Code and other laws applicable to the CD etc. |
Within 7 days of making the Public Announcement |
T+10 |
To be filed to IBBI |
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7 |
Regulation 12 (1) |
Submission of claims |
For 14 Days from the Appointment of IRP |
T+14 |
It is the Last date mentioned in the public announcement |
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8 |
Regulation 13(1) |
Verification of claims received under regulation 12(1) |
Within 7 days from the receipt of the claim |
T+21 |
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9 |
IRCULAR No. IBBI/CIRP/36/2020Reg. 13(2)(ca) of CIRP Regulations, 2016 |
List of Creditors:The IBBI the Board has made available an electronic platform at www.ibbi.gov.in for filing of list of creditors as well as updating it thereof. The platform permits multiple filings by the interim resolution professional or the resolution professional, as the case may be, as and when the list of creditors is updated by him. |
IRP or RP, be, shall verify every claim, as on the ICD, within 7 days from the last date of the receipt of the claims, and thereupon maintain a list of creditors |
T+21 |
To be filed to IBBI |
List of Creditors to be filed to IBBI within 21 days from ICDORAs and when the list get update/change |
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10. |
Section 21(6A) (b) / Regulation 16A |
Application for appointment of authorised representative of the creditors to AA |
Within 2 days from verification of claims received |
T+23 |
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11. |
Regulation 17(1) |
Report certifying constitution of CoC |
Within 2 days from verification of claims received |
T+23 |
To be filed to NCLT |
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12. |
IBBI CIRCULAR No. IP/005/2018 dated 16.01.2018 |
Relationship Disclosure:An insolvency professional shall disclose his relationship**, if any, with Financial Creditor(s) |
Disclosure to be made within 3 days of the constitution of Committee of Creditors. |
T+26 |
Disclosure to be made to IPA |
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13. |
IBBI CIRCULAR No. IP/005/2018 |
Relationship Disclosure:An insolvency professional shall disclose his relationship**, if any, with Interim Finance Provider(s) |
Disclosure to be made within 3 days the agreement with the Interim Finance Provider. |
Event based |
Disclosure to be made to IPA |
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14 |
INC-28 |
NCLT order approving as IRP |
Within 30 days of the NCLT Order |
T+30 |
To be filed to ROC |
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15. |
Central Goods and Services Tax Act, 2017(Notification No. 11/2020 – Central Tax dated 21.03.2020) |
New GST Registration |
Within 30 days of the appointment of the IRP/RP |
T+30 |
GST Portal |
New GST Registration required within 30 days of the appointment of the IRP/RP or within 30days from notification date. |
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16. |
Central Goods and Services Tax Act, 2017(Circular No.134/04/2020-GST dated 23.03.2020) |
GST ReturnThe IRP/RP will be liable to furnish returns, make payment of tax and comply with all the provisions of the GST law during CIRP period. The IRP/RP is required to ensure that the first return is filed under section 40 of the CGST Act, for the period beginning the date on which it became liable to take registration till the date on which registration has been granted |
. |
GST Portal |
CD eligible to avail input tax credit on invoices subject to conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of sub-section (4) of section 16 of the said Act and sub-rule (4) of rule 36 of the Central Goods and Service Tax Rules, 2017 (hereinafter referred to as the said rules). |
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17. |
Section 22(1) / Regulation 19(2) |
1st meeting of the CoC |
Within 7 days of filing of the report certifying constitution of the CoC, with five days’ notice. |
T+30 |
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18. |
Section 22(2) |
Resolution for appointment of RP by the CoC |
In the first meeting of the CoC within 30 days |
T+30 |
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19. |
Cost Disclosure: |
Cost Disclosure:Insolvency Resolution Process Cost of Corporate Debtor for the period under IRP |
To be submitted by the IRP within 7 days of his demitting of as IRP |
T+37 |
Disclosure to be made to IPA by IRP |
Within 37 days,ORWithin 7 days from the demitting of office by IRP |
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20. |
Regulation 17(3) |
IRP performs the functions of RP till the RP is appointed. |
T+40 |
If RP is not appointed by 40th day of commencement |
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21 |
CIRP 2 |
This includes details of Authorised Representative selected by IRPs for a class of creditors; taking over management of the CD; receipt and verification of claims; constitution of CoC, first meeting of CoC; confirmation /replacement of IRP; applications seeking cooperation of management (if any); expenses incurred on or by IRP; relationship of IRP with the CD, Financial Creditors and Professionals; support services taken from IPE; non- compliances with the provisions of the Code and other laws applicable to the CD; etc. |
Within seven days of confirmation/ replacement of IRP by CoC |
T+37Orwithin 7 days from order of AA |
To be filed to IBBI |
Within 37 days,If appointed by CoC.Orwhere appointed by AA, then, within 7 days from order of AA |
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22 |
Regulation 27 |
Appointment of Valuer |
Within 7 days of appointment of RP, but not later than 47th day of commencement |
T+47 |
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23. |
IBBI Circular No. IP/005/2018 dated 16.01.2018 |
Relationship Disclosure:An insolvency professional shall disclose his relationship**, if any, with Other Professionals [Registered Valuer(s) / Accountant(s) / Legal Professional(s) / Other Professional(s)] appointed by him |
Disclosure to be made within 3 days of his appointment. |
T+50 |
Disclosure to be made to IPA |
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24 |
Section 12(A) / Regulation 30A |
Submission of application for withdrawal of application admitted |
Before issue of EoI |
W |
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CoC to dispose of the application |
Within 7 days of its receipt or 7 days of constitution of CoC, whichever is later. |
W+7 |
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Filing application of withdrawal, if approved by CoC with 90% majority voting, by RP to AA |
Within 3 days of approval by CoC |
W+10 |
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25 |
Regulation 36 (1) |
Submission of IM to CoC |
Within 2 weeks of appointment of RP, but not later than 54th day of commencement |
T+54 |
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26. |
IBBI CIRCULAR No. IP/005/2018 dated 16.01.2018 |
Relationship Disclosure:An insolvency professional shall disclose his relationship**, if any, with Prospective Resolution Applicant(s) |
Disclosure to be made within three days of the supply of information memorandum to the Prospective Resolution Applicant. |
T+57 |
Disclosure to be made to IPA |
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27 |
CIRP 3 |
This includes details of RP; details of registered valuers; handing over of records of CD by I RP to RP; taking over management of the CD; applications seeking cooperation of management (if any); details in IM; non-compliances with the provisions of the Code and other laws applicable to the CD;etc. |
Within seven days of issue of IM to members of CoC |
T+61 |
To be filed to IBBI |
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28. |
Regulation 36A |
Publish Form GInvitation of EoI |
Within 75 days of commencement |
T+75 |
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; + on the website, if any, of the corporate debtor |
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29 |
Submission of EoI |
At least 15 days from issue of EoI |
T+90 |
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Provisional List of RAs by RP |
Within 10 days from the last day of receipt of EoI |
T+100 |
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Submission of objections to provisional list |
For 5 days from the date of provisional list |
T+105 |
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Final List of RAs by RP |
Within 10 days of the receipt of objections |
T+115 |
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30. |
Regulation 35A |
RP to form an opinion on preferential and other transactions |
Within 75 days of the commencement |
T+75 |
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RP to make a determination on preferential and other transactions |
Within 115 days of commencement |
T+115 |
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RP to file applications to AA for appropriate relief |
Within 135 days of commencement |
T+135 |
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31 |
Regulation 36B |
RFRP, including EM and IM |
Within 5 days of the issue of the provisional list of RAs |
T+105 |
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Receipt of Resolution Plans |
At least 30 days from Request for resolution plans |
T+135 |
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32 |
CIRP 4 |
This includes expression of interest; RFRP and modification thereof; evaluation matrix and modification thereof; non-compliances with the provisions of the Code and other laws applicable to the CD; etc. |
Within seven days of the issue of Request for resolution plan |
T+112 |
To be filed to IBBI |
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33. |
Regulation 39(4) |
Submission of CoC approved Resolution Plan to AA |
T+165 |
As soon as approved by the CoC |
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34. |
Section 31(1) |
Approval of resolution plan by AA |
T=180 |
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35. |
Cost Disclosure |
Insolvency Resolution Process Cost of Corporate Debtor for the period under RP |
To be submitted by the IRP within 7 days of his demitting of as RP |
T+187 |
Disclosure to be made to IPA by RP |
Within 187 days,ORWithin 7 days from the demitting of office by RP |
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36. |
CIRP 5 |
This includes updated list of claimants; updated CoC; details of the resolution applicants; details of resolution plans received; details of approval or rejection of resolution plans by CoC; application filed with AA for approval of resolution plan; details of resolution plan approved by the AA; initiation of liquidation, if applicable; expenses incurred on or by RP; appointment of professionals and the terms of appointment; relationship of the professionals and the terms of appointment; relationship of the RP with the CD, Financial Creditors, and Professionals; support services taken from IPE; non- compliances with the provisions of the Code and other laws applicable to the CD; etc. |
Within seven days of the approval or rejection of the resolution plan |
T+187 |
To be filed to IBBI |
It is to be noted that CIRP-5 to be filed within 7 days from order of AA for approval or rejection of Resolution Plan/Liquidation ordered. |
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37. |
CIRP 6 |
Event Specific:This includes:a. Filing of application in respect of preferential transaction, undervalued transaction, fraudulent transaction, and extortionate transaction;b. Raising interim finance;c. Commencement of insolvency resolution process of guarantors of the CD;d. Extension of period of CIRP and exclusion of time;e. Premature closure of CIRP (appeal, settlement, withdrawal, etc.);f. Request for liquidation before completion of CIRP; andg. Non implementation of resolution plan, as approved by the AA. |
Within seven days of the occurrence of the relevant event. |
Within 7 days |
To be filed to IBBI |
It is to be noted that CIRP-6 is an event based form which is filed within 7 days of the occurrence of the relevant event. |
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38. |
CIRP 7 |
Event Specific:Table-A1. Public announcement is not made by T+3rd day2. Appointment of RP is not made by T+30th day3. Information memorandum is not issued within 51 days from the date of public announcement4. RFRP is not issued within 51 days from the date of issue of information memorandum5. CIRP is not completed by T+180th dayT = Insolvency commencement date, andX = Date of filing of Form CIRP 7 for the first time under Table-A |
Regulation 40B of CIRPregulations require filing of Form CIRP 7 within three days of due date of completion of anyactivity stated in Table-A is delayed, and continue to file Form CIRP 7every 30 days, until the said activity remains incomplete. |
For 1st time filing:Date specified in Table-A + 3 daysFor Subsequent filing:X+30th day,X+60th day,X+90th day, and so on, till the activity is Completed. |
To be filed to IBBI |
Clarification: Only one Form CIRP 7 shall be filed at any time whether one or more activity is not complete by the specified date. |
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39. |
GNL-2 (AOC-4, MGT-7, & ADT-1)With ref. to MCA Circular no. 08/2020 dated 06.03.2020 Form GNL-2 replace the above Annual filing forms |
ANNUAL COMPLICANCES – Annual Filing Forms:Every company require to file Financial Statement (AOC-4) within 30 days from the date of AGM to ROCEvery company require to file Annual Return (MGT-7) within 60 days from the date of AGM to ROCEvery Public company requires filing Form ADT-1 within 15 days from the date of AGM.Note: Date of AGM shall be the last date on which AGM ought to have been held as per section 96 of the Companies Act, 2013. |
AGM+30 daysAGM+60 daysAGM+15 days |
To be filed to ROC |
It is to be noted that IRP/RP/LIQUIDATOR shall be responsible for all filing and sign in the capacity of CEO.All filings of e-forms including AOC-4 and MGT-7 shall be filed through e-form GNL-2 by way of attachments till the company is under CIRP.Against the date of event and Board Resolution in GNL-2date of order may be mentioned. |
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40. |
Pursuant to sub clause 16 of Clause VIII of Schedule of IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 |
Half Yearly Return:Filing of submission of Half Yearly Return within 15 days from the end of respective Half YearEvery professional member shall submit information, including records of ongoing and concluded engagements as an insolvency professional, in the manner and format specified by the Agency.
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within 15 days from the end of respective Half Year |
– |
To be Submit to IPA by IP |
IP shall submit a half yearly return to IPA within 15 days from end of half year. |
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41. |
Regulation 7(2) (ca) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 |
Yearly Compliance with regulations 7 (2) (ca)The insolvency professional shall– … (ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the professional fee earned for the services rendered by him as an insolvency professional in the preceding financial year, on or before the 30th of April every year, along with a statement in Form E of the Second Schedule;” |
Every year before 30th April. |
– |
To be paid to IBBI |
IP shall pay a fee of 0.25% of professional fee earned in the P.F.Y on or before 30th April every year to IBBI. |
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42. |
Regulations 13 (2) (ca) of the IP Regulations |
Yearly Compliance with regulations 13 (2) (ca)The insolvency professional entity shall- (ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the turnover from the services rendered by it in the preceding financial year, on or before the 30th of April every year, along with a statement in Form G of the Second Schedule;” |
Every year before 30th April. |
– |
To be paid to IBBI |
IPE shall pay a fee of 0.25% of its turnover in the P.F.Y on or before 30th April every year to IBBI. |
- AA: Adjudicating Authority
- CIRP: Corporate Insolvency Resolution Process
- ICD: Insolvency Commencement Date
- IRP: Interim Resolution Professional;
- RP: Resolution Professional
- AR: Authorised Representative
- CoC: Committee of Creditors
- EoI: Expression of Interest
- IM: Information Memorandum
- RFRP: Request for Resolution Plan
- EM: Evaluation Matrix
- RA: Resolution Applicant
** ‘relationship’ shall mean any one or more of the four kinds of relationships at any time or during the three years preceding the appointment:
Kind of Relationship | Nature of Relationship |
A | Where the Insolvency Professional or the Other Professional, as the case may be, has derived 5% or more of his / its gross revenue in a year from professional services to the related party |
B | Where the Insolvency Professional or the Other Professional, as the case may be, is a Shareholder, Director, Key Managerial Personnel or Partner of the related party. |
C | Where a relative (Spouse, Parents, Parents of Spouse, Sibling of Self and Spouse, and Children) of the Insolvency Professional or the Other Professional, as the case may be, has a relationship of kind A or B with the related party. |
D
|
Where the Insolvency Professional or the Other Professional, as the case may be, is a partner or director of a company, firm or LLP, such as, an Insolvency Professional Entity or Registered Valuer, the relationship of kind A, B or C of every partner or director of such company, firm or LLP with the related party. |
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Operational creditors can file against the company Director criminal proceeding. except NCLT
an operational creditor can file criminal proceedings against the company director.. except
NCLT
yes, criminal proceedings can be initiated against the Directors in the respective forum, if they were involved into any such activity.