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
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
2.
Section 16(1)
Commencement of CIRP and appointment of IRP
T
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
4.
Pursuant to section 13 and Regulation 6(1)
 
Time based Disclosure:
Public announcement (Form A) inviting claims
PA 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
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
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
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
8
Regulation 13(1)
Verification of claims received under regulation 12(1)
Within 7 days from the receipt of the claim
T+21
9
 IRCULAR No. IBBI/CIRP/36/2020
Reg. 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 ICD
OR
As and when the list get update/change
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
11.
Regulation 17(1)
Report certifying constitution of CoC
Within 2 days from verification of claims received
T+23
To be filed to NCLT
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
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
14
INC-28
NCLT order approving as IRP
Within 30 days of the NCLT Order
T+30
To be filed to ROC
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.
16.
Central Goods and Services Tax Act, 2017
(Circular No.134/04/2020-GST dated 23.03.2020)
GST Return
The 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).
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
18.
Section 22(2)
Resolution for appointment of RP by the CoC
In the first meeting of the CoC within 30 days
T+30
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,
OR
Within 7 days from the demitting of office by IRP
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
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+37
Or
within 7 days from order of AA
To be filed to IBBI
Within 37 days,
If appointed by CoC.
Or
 where appointed by AA, then, within 7 days from order of AA
22
Regulation 27
Appointment of Valuer
Within 7 days of appointment of RP, but not later than 47th day of commencement
T+47
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
24
Section 12(A) / Regulation 30A
Submission of application for withdrawal of application admitted
Before issue of EoI
W
CoC to dispose of the application
Within 7 days of its receipt or 7 days of constitution of CoC, whichever is later.
W+7
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
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
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
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
28.
Regulation 36A
Publish Form G
Invitation 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
29
Submission of EoI
At least 15 days from issue of EoI
T+90
Provisional List of RAs by RP
Within 10 days from the last day of receipt of EoI
T+100
Submission of objections to provisional list
For 5 days from the date of provisional list
T+105
Final List of RAs by RP
Within 10 days of the receipt of objections
T+115
30.
Regulation 35A
RP to form an opinion on preferential and other transactions
Within 75 days of the commencement
T+75
RP to make a determination on preferential and other transactions
Within 115 days of commencement
T+115
RP to file applications to AA for appropriate relief
Within 135 days of commencement
T+135
31
Regulation 36B
RFRP, including EM and IM
Within 5 days of the issue of the provisional list of RAs
T+105
Receipt of Resolution Plans
At least 30 days from Request for resolution plans
T+135
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
33.
Regulation 39(4)
Submission of CoC approved Resolution Plan to AA
T+165
As soon as approved by the CoC
34.
Section 31(1)
Approval of resolution plan by AA
T=180
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,
OR
Within 7 days from the demitting of office by RP
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.
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; and
g.  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.
38.
CIRP 7
 
Event Specific: 
Table-A 
1.  Public announcement is not made by T+3rd day
2.  Appointment of RP is not made by T+30th day
3.  Information memorandum is not issued within 51 days from the date of public announcement
4.  RFRP is not issued within 51 days from the date of issue of         information memorandum
5.  CIRP is not completed by T+180th day 
T = Insolvency commencement date, and
X = Date of filing of Form CIRP 7 for the first time under Table-A
Regulation 40B of CIRP
regulations require filing of Form CIRP 7 within three days of due date of completion of any
activity stated in Table-A is delayed, and continue to file Form CIRP 7
every 30 days, until the said activity remains incomplete.
For 1st time filing:
Date specified in Table-A + 3 days
For 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.
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 ROC
Every company require to file Annual Return (MGT-7) within 60 days from the date of AGM to ROC
Every 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 days
AGM+60 days
AGM+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-2
date of order may be mentioned.
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 Year
Every 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.
Reporting Tenure
Last Date
From 1st April to 30th Sept
15th October
From 1st Oct to 31st Mar
15th April
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.
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.
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.

Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

Author Bio

Qualification: CS
Company: Yogakshem Insolvency Professionals LLP
Location: Delhi, Delhi, India
Member Since: 24 Jun 2020 | Total Posts: 3
Company Secretary with a demonstrated history of work experience in the legal services industry. Having exposure to Corporate laws including the Companies Act, 2013, SEBI (LODR) Regulations, 2015, Insolvency & Bankruptcy Code, 2016. SEBI|NSE|BSE| ROC| NCLT View Full Profile

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