Comparison in CIRP, Voluntary, liquidation & FTP Process
Comparison between CIRP process, Liquidation process, Voluntary liquidation processes – Section 59, and Fast track process
| S. No . | Action | Particular of IBC | CIRP | Liquidation process | Voluntary liquidation processes – Section 59 | Fast track process |
| Appplicablity | Who can apply | FC / OC / CD | Max period of CIRP is over / AA rejects the plan / COC before submission of R.plan decides to liquidate with 90% / where the R.plan is contravened by CD | Debtor, affidevit by majority of Directors of full enquiry with / can pay the debt & not to defraud. Accompanies with 2 year FS & valuation report. Passing of Special Resolution in 4 weeks and approval from creditors with 2/3 rd in value withing 7 days of the Special resolution | a corporate debtor with assets and income below a level as may be notified by the Central Government; or a corporate debtor with such class of creditors or such amount of debt as may be notified by the C Govt; or such other category of corporate persons as may be notified by the Central Government. | |
| Appplicablity | Commencement date | Date of acceptance by AA or appointment of IR | From date of resolution | |||
| Appplicablity | Acceptance / Rejection | 14 days & 7 days respectively by AA | ||||
| Appplicablity | Appointment criteria | auditor – no, L&C 5% or more in last 3 years, Independent | auditor – no, L&C 10% or more in any of the 3 years, Independent | auditor – no, L&C 10% or more in last 3 years, Independent | auditor – no, L&C 10% or more in last 3 years, Independent | |
| Appointment | Appointment of IRP – name proposed | Notice – 7 days, appointment – 10 days | NA | NA | ||
| Appointment | Appointment of IRP – not proposed | Notice – 7 days, appointment – 10 days | NA | NA | ||
| Closure | Max time period | 180 + 90 days (max 1 extension) | 2 years | 6 months distribution, 1 year completion | 90 + 45 days (max 1 extension) | |
| Monetorium | Intrim monetorium | NA | NA | |||
| Monetorium | Monetorium | Till the date of Resolution plan approval | NA | |||
| Public Notice | Public notice | IRP | Liquidator | Liquidator | IRP | |
| Public Notice | Form | Form A | Form B Schedule II | Form A | Form A | |
| Public Notice | Public notice | 3 days of appointment | 5 days of appointment | 5 days of appointment | 3 days of appointment | |
| Public Notice | Publicshed at | Leading news paper (English & Local), Registed / principle office/ corporate debtor conducts material business operations; Website of corporate debtor Website of IBBI |
Leading news paper (English & Local), Registed / principle office / corporate debtor conducts material business operations Website of corporate debtor Website of IBBI |
Leading news paper (English & Local), Registed / principle office Website of corporate debtor Website of IBBI |
Leading news paper (English & Local), Registed / principle office Website of corporate debtor Website of IBBI |
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| Claims / COC | Register claims | 14 days & verify in 7 days, max upto 90 date from ICD | 30 days & verify in 30 days, 14 days withdraw | 30 days & verify in 30 days – claim to be lodged by email by FC | 10 days & verify it in 7 days | |
| Claims / COC | Cost of public announcement | Applicant | Applicant | Applicant | Applicant | |
| Claims / COC | Foreign currency | ICD date @ RBI | LCD date @ RBI | LCD date @ RBI | FCD date @ RBI | |
| Claims / COC | Verification of claims | 7 days from last date of registration of claim | 30 days | 30 days | 7 days | |
| Claims / COC | COC | FC or 18 largest OC by value + 1 rep of workmen + 1 rep of emp | Stakeholder list to be prepared in 45 days from receipts of claim | Stakeholder list to be prepared in 45 days from receipt of claim | FC or 18 largest OC by value + 1 rep of workmen + 1 rep of emp | |
| Claims / COC | Formation date of COC | 2 days of claim verification & 7 days 1 meeting of COC | Not Applicable | 21 days from appointment, first meeting in 7 days | ||
| Claims / COC | Quorum | 33% to call the meeting | Not Applicable | 33% to call the meeting | ||
| Claims / COC | Notice time | 5 days | Not Applicable | 7 days notice | ||
| Claims / COC | Summoning / COC | Not Applicable | ||||
| Claims / COC | Basis classes of creditor | 2 IP per class | Not Applicable | 1 IP per class | ||
| Claims / COC | Change in committee | 2 days | Not Applicable | |||
| Reports | Pref transaction | Related party, 2 years (Form Opinion in 75 days & Determine in 115 days, apply to AA in 135 days) | Not Applicable | |||
| Reports | Preliminary report / asset memo | NA | 75 days from LCD | 45 days from LCD | ||
| Reports | Resolution plan | 5 days from provisional list, to be submitted 15 days before closure | Not Applicable | To be submitted 15 days before 90 days | ||
| Reports | Information memo | 2 weeks of appointment of RP but not later than 54 days | Not Applicable | 2 weeks | ||
| Reports | Discharge order | Not Applicable | ||||
| RP | Replacement of RP | Not Applicable | ||||
| RP | Casual vacany | Not Applicable | ||||
| RV | No. of RV | 2 RV or 3 RV, withing 7 day max 47 days | working of CIRP is useful or 7 days | Not Applicable | ||
| RV | Written consent of proposed RV | Form AA | Not Applicable | |||
| Finalisation | Preservation | 8 years (physical / electronic both) | 8 years (physical / electronic both) | |||
| Forms | Financial Creditor | Form 1 + 25000 | Not Applicable | |||
| Forms | Confirmation by IIP | Form 2 | Not Applicable | |||
| Forms | Demand Notice | Form 3 | Not Applicable | |||
| Forms | Notice + Invoice | Form 4 | Not Applicable | |||
| Forms | Operational Creditor | Form 5 + 2000 | Not Applicable | |||
| Forms | Corporate applicant | Form 6 + 25000 | Not Applicable | |||
| Submission | Stake Holders | – | A | – | ||
| Submission | Public Advertismenet | A | B | A | A | |
| Submission | Written consent of the RP | AA | – | – | ||
| Submission | Written consent of the AR | AB | – | – | ||
| Submission | Operational Creditors | B (in person / post / electronic) | C | B | B | |
| Submission | Financial Creditors | C (electronic) | D | C | C | |
| Submission | Class of creditors | CA (electronic) | – | – | ||
| Submission | Workmen and Employees | D (in person / post / electronic) | E | D | D | |
| Submission | representatives of Workmen | E | F | E | E | |
| Submission | other stake holders | F (in person / post / electronic) | G | F | F | |
| Submission | Withdrawal of Application | FA | – | – | ||
| Submission | Invitation for EOI / RP | G | G | |||
| Submission | Compliance Certificate | H | H | |||
| Transactions | Fraud Transaction | > 2 year (forensic) | ||||
| Transactions | Other Transaction | Upto 2 year | ||||
| Closure | Dissolution letter | 14 days | 7 days | |||
| Closure | Time frame | 2 year | min, 12 months | |||
| Reports to be Prepared | ||||||
| Preliminary Report Capital structure estimate of A&L |
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| Progress Report – 15 days (must include asset sale report) | ||||||
| Asset Sale Report | ||||||
| Final Report | ||||||
| Onerous property – withinh 6 months from LCD to be informed to AA | ||||||
| Liquidator to inform his intention to the interested person within 1 month | ||||||