CAIRR Update July 01, 2024

01/07/2024

Summary of the IBBI Circulars dated 28/06/2024

Filing Forms to monitor Liquidation and Voluntary liquidation processes under the IBC, 2016, and the regulations made thereunder

The Insolvency Professional (IP), functioning as a liquidator, is required to ensure compliance with legal requirements and reporting to the Adjudicating Authority (AA) and IBBI, upon the initiation of the liquidation and Voluntary liquidation process. To relieve the IPs from the compliance burden, IBBI has introduced a set of forms on an electronic platform to capture the details of the voluntary liquidation process. 

Following are the Forms w.r.t. the liquidation process and the timelines before which they need to be filed on the platform, hosted on the IBBI website at https://www.ibbi.gov.in. 

1. Form LIQ 1– including the details of the Liquidator, Corporate Debtor (CD), and the liquidator’s fee for the period starting from the Commencement of Liquidation till Public Announcement- to be filed On or before the 10th day of the subsequent month, after a public announcement has been made.
2. Form LIQ 2– including the details of valuation, sale, litigations, PUFE, SCC meetings, Receipts and Payments for the period starting from the Public Announcement till Progress Report- to be filed On or before the 10th day of the subsequent month, after submission of the Progress report to the AA.
3. Form LIQ 3– including the details of unclaimed proceeds, sale, litigations, PUFE, Realisation, distribution of proceeds, Receipts and Payments. (The details required in these forms are carried forward from the last Progress Report and hence need not be filled again) for the period starting from the last Progress Report to Application for Dissolution- to be filed On or before the 10th day of the subsequent month, after submission of the Dissolution /closure application to the AA.
    
4. Form LIQ 4- including the details of the distribution of proceeds, Receipts and Payments, etc. (The details required in these forms are carried forward from the last Progress Report and hence need not be filled again) for the period starting from the Application for Dissolution to Order for Dissolution- to be filed On or before the 14 days of passing of the order for dissolution of corporate debtor or closure of the liquidation process by the AA.
   

a) For all the cases where a liquidation order is passed on or after the issuance of this circular, within the prescribed timelines.

 

b) For any ongoing cases, in which no application for dissolution of the corporate debtor/ closure of the liquidation process has been filed, the IP shall file LIQ 1 and LIQ 2 (for the March 24 quarter) latest by 30th September 2024.

c) Forms LIQ 1 and LIQ 2 (for the last quarter of the process), and LIQ 3 (where an application for dissolution of the corporate debtor / closure of the liquidation process has been filed with AA) latest by 30th September 2024.

d) Forms LIQ 1 and LIQ 2 (for the last quarter of the process), LIQ 3, and LIQ 4 (where an order for closure of the liquidation process or dissolution of the corporation debtor has been ordered by AA) latest by 30th September 2024.

a) For all the cases of voluntary liquidation, where the process has commenced on or after the date of issuance of this circular, within the prescribed timelines.

b) For any ongoing cases, in which no application for dissolution of the corporate person has been filed, the IP shall file the following forms latest by 30th September 2024:

– Form VL 1 (for all the cases)

– Form VL 2 (for cases where the process is delayed or the liquidator is replaced, as the case may be.)

c) Form VL1, VL2 and VL3 (where an application for dissolution or withdrawal / suspension of the voluntary liquidation process of the CP has been filed with AA) latest by 30th September 2024.

d) Form VL 1, VL 3, and VL 4 (for cases where dissolution of the CP or withdrawal / suspension of voluntary liquidation process has been ordered by AA.) latest by 30th September 2024.

It is also clarified in the circular that the IPs who do not comply with applicable provisions of the Code and the Regulations, shall be liable as per applicable provisions of the Code and the Regulations made thereunder for:

(i) failure to file the requisite Forms along with relevant information and records,

(ii) inaccurate and incomplete information and/or records filed in or along with a Form.