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Comparison in CIRP, Voluntary, liquidation & FTP Process

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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
	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
				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

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i. Link for eBKray_Listing & Auction Platform – https://ebkray.in/

ii. eBKray_Listing Guide for Insolvency Professionals (As on 29.10.2024) – https://ibbi.gov.in/uploads/psb_alliance/Listing%20Guide%20for%20Insolvency%20Professionals%20(As%20on%2029.10.2024.pdf

iii. eBKray_Auction guide for Insolvency Professionals (As on 29.10.2024) – https://ibbi.gov.in/uploads/psb_alliance/Auction%20guide%20for%20Insolvency%20Professionals%20(As%20on%2029.10.2024).pdf

iv. eBKray_Auction guide for Bidders (As on 29.10.2024) – https://ibbi.gov.in/uploads/psb_alliance/Auction%20guide%20for%20Bidders%20(As%20on%2029.10.2024).pdf

v. eBKray_FAQ for Listing & Auction Platform (As on 29.10.2024) – https://ibbi.gov.in/uploads/psb_alliance/FAQ%20for%20PSB%20Alliance%20(As%20on%2029.10.2024).pdf

For any concerns regarding the eBKray Listing and Auction platform,

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Tags: IBC RegulationInsolvency and Bankruptcy Board of India (IBBI)

2 years ago

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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