Insolvency and Bankruptcy Board of India (IBBI) mandates that liquidators submit progress reports during the liquidation process in accordance with Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. These reports must be submitted to both the Adjudicating Authority and the IBBI, and a circular dated 22 February 2024 requires that these reports be shared with the Stakeholders’ Consultation Committee members under a confidentiality agreement. The progress reports should include details such as the appointment and cessation of professionals, the status of unsold property, distributions made to stakeholders, the fee and remuneration paid, developments in material litigation, and the status of applications for the avoidance of transactions.
To ensure uniformity, a standardized format for these progress reports is proposed, and stakeholders are invited to comment on this format by 12th July 2024. The proposed format includes sections on the details of the corporate debtor, a synopsis of the case, the present status of the process, a chronological list of actions taken, a summary of receipts and payments, non-fund-based exposure of banks, liquidation costs, and distributions made to stakeholders. The format also requires detailed annexures covering the constitution and meetings of the Stakeholders’ Consultation Committee, appointment and cessation of professionals, security interests realized, assets put up for sale, PUFE applications, and cases pending before courts or tribunals. Comments can be submitted electronically through the IBBI website.
Insolvency and Bankruptcy Board of India
21st June, 2024
Format for progress report during Liquidation process
Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 mandates the submission of progress reports by the liquidator during the liquidation process. Sub-regulation (1) specifies that the liquidator must submit Progress Reports, in the format stipulated by the Board, to both the Adjudicating Authority and the Board. Additionally, a circular dated 22 February 2024 requires that the liquidator share the progress reports with the members of the Stakeholders’ Consultation Committee, provided they have given a confidential undertaking.
2. Regulation 15 outlines that the progress report must include various pieces of information. This includes details on the appointment, tenure, and cessation of appointment of professionals; the settlement of the list of stakeholders; the status of any property that remains to be sold and realized; distributions made to stakeholders; and the distribution of unsold property to stakeholders. Additionally, the report should cover the fee due to and received by the liquidator, the remuneration or fee paid to professionals appointed by the liquidator, developments in any material litigation involving the corporate debtor, and the filing and developments in applications for avoidance of transactions.
3. To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for Insolvency Professionals (IPs) and the Adjudicating Authority if there were a standardized format. A draft of the format for the progress report is enclosed as an Annexure.
4. The Board accordingly solicits comments on the format. Comments may be submitted electronically by 12th July 2024. For providing comments, please follow the process as under:
(i) Visit IBBI website, ibbi.gov.in;
(ii) Select ‘Public Comments’; and then select ‘Format for progress report during Liquidation process’;
(iii) Provide your Name, and Email ID;
(iv) Select the stakeholder category, namely, –
a. Corporate Debtor;
b. Personal Guarantor to a Corporate Debtor;
c. Proprietorship firm;
d. Partnership firm;
e. Creditor to a Corporate Debtor;
f. Insolvency Professional;
g. Insolvency Professional Agency;
h. Insolvency Professional Entity;
i. Academics;
j. Investor; or
k. Others.
(v) Select the kind of comments you wish to make, namely,
a. General Comments; or
b. Specific Comments.
(vi) If you have selected ‘General Comments’, please select one of the following options:
a. Inconsistency, if any, with the regulations;
b. Inconsistency, if any, with Code/rules;
c. Any difficulty in implementation;
d. Any provision that should have been provided, but has not been provided; or
e. Any provision that has been provided but should not have been provided. And then write comments under the selected option.
(vii) If you have selected ‘Specific Comments’, please select para and write comments under the selected para.
(viii) You can make comments on more than one para, by clicking on More Comments and repeating the process outlined above from point 4(v) onwards.
(ix) Click ‘Submit’, if you have no more comments to make.
Annexure
Progress Report of the Corporate Debtor for the quarter ending MM/YY
1. Details of Corporate Debtor:
| S. No. | Particulars | Details |
| 1. | Date of initiation of liquidation process | |
| 2. | Name of the Liquidator | |
| 3. | Whether the Corporate Debtor is being maintained as a going concern as on date? | (Yes/No) |
| 4. | Valuation during CIRP: Fair Value: Liquidation Value: | |
| 5. | Valuation during Liquidation (If any) | |
| 6. | Insolvency Commencement Date | |
| 7. | Professionals (RP/Liquidators) with dates |
B. Synopsis (Brief facts about the case, including the reason for commencement of Liquidation Process)
C. Present status of the process:
1. Reason for pendency and proposed line of action to complete the liquidation process
2. Any important order from any authority other than AA affecting the process
D. List of events/action taken during liquidation process in chronological order:
1. From LCD to previous progress report:
| Date | Particulars |
2. During the current quarter:
| Date | Particulars |
E. Summary of Receipts and Payments during the quarter (Amount in Rupees)
1. Receipt and Payment Account
Receipts |
Payments |
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Opening Balance of Cash and Bank Balance at LCD / at the end of the previous quarter |
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Particulars |
At the beginning of the quarter |
Received during the quarter |
At the end of the quarter |
Particulars |
At the beginning of the quarter |
Paid during the quarter |
At the end of the quarter |
Sale of assets |
Unpaid CIRP expenses |
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Assignment |
Liquidation process expenses (excluding going concern expenses and Liquidator fee) |
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Recovery from receivables |
Liquidator fee |
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Recovery from Statutory authorities |
Misc Expenses |
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Going concern
|
Going concern expenses |
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Contribution from FIs |
Refund of contribution |
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EMD |
Return of EMD |
||||||
Misc receipts |
Distribution to claimants |
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Total |
Total |
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Closing cash and bank balance at the end of the quarter |
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Note: Additional heads may be added based on the nature of the case
2. Non-Fund Based exposure of banks during CIRP and Liquidation Process of the Corporate Debtor: (Amount in Rs.)
| Exposure at the beginning of the quarter | Exposure at the end of the quarter | Reason for change |
F. Liquidation Cost: (Amount in Rupees)
| S. No. | Particulars | |
| 1. | Estimated liquidation costs as on LCD | |
| 2. | Actual liquidation cost as on the quarter end | |
| 3. | Changes, if any, in estimated liquidation costs | |
| 4. | Reason for actual cost exceeding the estimates or change in estimated costs, if any |
G. Distribution made to stakeholders (Amount in Rupees)
| Stakeholders | Claims admitted during the quarter |
Total Claim admitted |
Amount distributed at the beginning of the quarter | Amount distributed during the quarter |
Cumulative Amount distributed till at the end of the quarter |
| Insolvency resolution process costs | |||||
| Liquidation cost excluding liquidator’s fees | |||||
| Liquidator’s Fees | |||||
| Total Secured creditors | |||||
| Secured Financial creditors | |||||
| Other Secured creditors | |||||
| Unsecured Financial creditors | |||||
| Workmen (for twenty-four months preceding LCD) | |||||
| Workmen (for period beyond twenty-four months preceding LCD) | |||||
| Employees (for twelve months preceding LCD) | |||||
| Employees (for period beyond twelve months preceding LCD) | |||||
| Statutory dues | |||||
| Operational Creditors other than employees/ workmen / statutory authorities | |||||
| Any other creditors | |||||
| Preference shareholders | |||||
| Equity shareholders or partners | |||||
| Grand Total | |||||
Annexure:
A. Constitution of Stakeholders’ Consultation Committee
B. Stakeholders’ Consultation Committee meetings
C. Appointment/Cessation of Professionals
D. Details of security interest realized/to be realized by each secured creditor:
E. Details of assets put up for sale during current quarter (including assignment of not readily realizable assets)
F. Details of asset(s) not being put up for sale/assignment during the quarter
G. Details of PUFE application
H. Details of cases pending before Courts/Tribunals
Receipts and Payments
Annexure
A. Constitution of Stakeholders’ Consultation Committee
| S. No. | Name of the stakeholders/Representative | Class of Stakeholders | Amount Admitted | Voting share (%) |
| 1 | Secured Financial Creditors | |||
| 2 | Unsecured Financial Creditors | |||
| 3 | Other operational creditors | |||
| 4 | Workmen/ Employees | |||
| 5 | Government | |||
| 6 | Shareholders | |||
| 7 | Others | |||
| Total |
B. Stakeholders’ Consultation Committee meetings (Add for each meeting)
| Particular | Details |
| Date of meeting held during the quarter | |
| Whether any decision taken different from the advice given by the SCC under Regulation 31A(9): (Yes / No) | |
| In case of Yes, justification for such disagreement: | |
| In case the gap between two consecutive meetings is more than 30 days, state the reasons: |
C. Appointment/Cessation of Professionals
| S. No. | Date of appointment | Date of cessation | Name of Professional | Scope of work | Fees payable (Amount in Rupees) | Remark (In case of deviation from Regulation 7 and 31A of liquidation regulation) |
D. Details of security interest realized/to be realized by each secured creditor: (Amount in Rupees)
S. No. |
Name of Secured Creditor |
Admitted claim |
Liquidation value of security interest |
Amount of realization by secured creditor |
Contribution made as per reg. 21A(2) |
If contribution not made as per reg. 21A(2), action taken by liquidator |
E. Details of assets put up for sale during current quarter (including assignment of not readily realizable assets)
(Amount in Rupees)
Sl. No. |
Details of asset(s) in brief |
E-auction / Private Sale /
|
Number of failed auctions |
Date of sale /assignment |
Estimated Realizable Value in
|
Reserve Price |
Successful bid value (if any) |
Remark ( In case of deviation from Regulation 33 and its schedule-I of liquidation regulation) |
1 |
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Total |
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F. Details of asset(s) not being put up for sale / assignment during the quarter (Amount in Rupees)
| Sl. No. | Details of asset(s) in brief | Estimated Realizable Value in accordance with reg. 35 | Reason(s) |
| 1 | |||
| Total | |||
G. Details of PUFE application: (Amount in Rupees)
| Date of filing of application | Filed by RP / Liquidator | Section(s) to which PUFE transaction pertains to (43/45/50/66) | Underlying Amount | Present status |
| Total | ||||
H. Details of cases pending before Courts/ Tribunals
1. Case initiated by CD
| Court | Case Number | Parties (Applicants and Respondents) | Issue in Brief | Amount involved | Present Status |
2. Case initiated against CD
| Court | Case Number | Parties (Applicants and Respondents) | Issue in Brief | Amount involved | Present Status |
I. Receipts and Payments (Amount in Rupees)
| Details of Receipts | At the beginning of the quarter | Received during the quarter |
At the end of the quarter |
| A. Balance at LCD | |||
| Cash | |||
| Bank Balance | |||
| FDR/Insurance /Mutual funds/Investment in listed shares, etc. | |||
| B. Contribution to liquidation cost from FIs | |||
| Contribution from financial institution | |||
| C. Realisation from assets | |||
| Auction sale | |||
| Private sale | |||
| Assignment of NRRA | |||
| D. Other realization | |||
| Receivables | |||
| Arbitration/ settlement proceeds | |||
| Avoidance applications | |||
| Refunds from Statutory authorities | |||
| Revenue from the business of CD as a going concern | |||
| Others | |||
| Total Receipts (A+B+C+D) | |||
| Details of Payments | At the beginning of the quarter | Paid during the quarter | At the end of the quarter |
| A. Unpaid CIRP Expenses paid during liquidation | |||
| Interim Finance, including interest | |||
| RP’s fee | |||
| Professional fee | |||
| Cost of operating the business as a going concern during CIRP | |||
| Statutory dues | |||
| Others | |||
| B. Liquidation process cost | |||
| Liquidator fee | |||
| Support services fee | |||
| Marketing expenses | |||
| Litigation expenses (including fee paid to advocates) | |||
| Cost incurred for protecting and preserving the assets of the CD | |||
| Fee paid to other professional | |||
| Any other cost | |||
| E. Going concern cost paid | |||
| Cost incurred for running the business of the CD | |||
| Cost incurred for protecting and preserving the assets of the CD | |||
| F. Contributions repayment to CoC members | |||
| Payment to contributories, including interest, during liquidation | |||
| G. Distribution to claimants under Section 53(1) | |||
| Total Payments (A+B+C+D+E) | |||
| Balance at the end of the period (Total Receipts – Total payment) |
