Insolvency and Bankruptcy law is affecting ordinary people outside business houses, including real estate buyers. Mode for submission of claims before the Resolution Professional or liquidators has one of the technical questions.
Under the insolvency and bankruptcy law, claimants before Resolution Professional or liquidator may either be of the following categories:
– Financial Creditors;
– Class of (financial) Creditors (There must be at least 10 Financial Creditors to form a class of creditors);
– Operational Creditors;
– Workmen and Employees (individually);
– Workmen and Employees (for All); or
– other than those covered.
All these categories for creditors should file their claims before the resolution professional or liquidators.
Under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 prescribed mode to submit a claim is hereunder:
• In Electronic Form
– Financial Creditors – Form C
– Class of Creditors (at least 10 FC) – Form CA
• By post or by electronic means
– Operational Creditors –Form B
– Workmen and Employees (individually) – Form D
– Workmen and Employees (for All) – Form E
• In person, by post or by electronic means
– other than those covered – Form F
Please note, this is my presumption that common claims for numerous workers or employees be filed either through post or electronic mode. Unfortunately, the relevant sub-regulation is silent on this aspect.
There are a similar provision under the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
What will happen if a person does not file a claim in the legally mandated mode to submit their claim. Will the resolution professional or liquidator deny accepting these claims? Will it be proper compliance of law on the part of the insolvency professional to accept all claims in person?
I have no answer.
To avoid, I prefer submission of claim in electronic mode with a copy of these claims in physical format. Physical format, particularly in case of big bank loan, become bulky, but it helps cross-reference while verifying these claims. Further, it is not easy to notice alterations in soft copies.
I also advise claimants should not send original documents except claim forms and verification undertaking or affidavit.