Return & Disclosures Needed to be file By RP under IBC

Kind of Return & Disclosures required to be file by Resolution Professional under IBC

Independent is required for eligibility of Resolution Professional-Regulation 3(1)

An IP shall be eligible to be appointed as a RP  for a corporate insolvency resolution process of a CD  if he, and all partners and directors of the IPE of which he is a partner or director, are independent of the CD under under IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 

Code of Conduct for Resolution Professional under IBC

• Integrity and objectivity
• Independence and impartiality
• Professional competence
• Timeliness
• Information management
• Confidentiality
• Occupation, employability and restrictions
• Remuneration and costs
• Gifts and hospitality

Integrity and objectivity by Resolution Professional under IBC

• An insolvency professional must maintain integrity by being honest, straightforward, and forthright in all professional relationships.
• Insolvency professional must not misrepresent any facts or situations and should refrain from being involved in any action that would bring disrepute to the profession.
• An insolvency professional must provide services for remuneration which is charged in a transparent manner, is a reasonable reflection of the work necessarily and properly undertaken, and is not inconsistent with the applicable regulations.

Disclosures required to be file by Resolution Professional under IBC

• 3A. An IP must disclose the details of any conflict of interests to the stakeholders, whenever he comes across such conflict of interest during an assignment. (w.e.f. 23.07.2019)
• An IP shall disclose as to whether he was an employee of or has been in the panel of any FC of the CD, to the CoC and to the IPA of which he is a professional member and the agency shall publish such disclosure on its website. (w.e.f. 01.04.2018)
• Resolution Professional must not engage in any employment when he holds a valid authorisation for assignment or when he is undertaking an assignment. (w.e.f. 23.07.2019)
• Where an IP has conducted a CIRP, he and his relatives shall not accept any employment, other than an employment secured through open competitive recruitment, with, or render professional services, other than services under the Code, to a creditor having more than ten percent voting power, the successful resolution applicant, the CD or any of their related parties, until a period of one year has elapsed from the date of his cessation from such process.
• 23B. An IP shall not engage or appoint any of his relatives or related parties, for or in connection with any work relating to any of his assignment.
• 23C. An IP shall not provide any service for or in connection with the assignment which is being undertaken by any of his relatives or related parties.
• For the purpose of clauses 23A to 23C, “related party” shall have the same meaning as assigned to it in section 5(24A), but does not include an IPE of which the IP is a partner or director.
• An IP shall disclose the fee payable to him, the fee payable to the IPE, and the fee payable to professionals engaged by him to the IPA of which he is a professional member and the agency shall publish such disclosure on its website. (w.e.f. 01.04.2018)

Disclosures required to be file by Resolution Professional under IBC

• Resolution Professional shall make disclosures at the time of his appointment and thereafter in accordance with the Code of Conduct: Regulation 3(2) under IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
• RP (Resolution Professional) shall make disclosures at the time of his appointment and thereafter in accordance with the Code of Conduct.
• Resolution Professional, who is a director or a partner of an IPE, shall not continue as a RP if the IPE or any other partner or director of such IPE represents any of the other stakeholders in the same CIRP.

Declaration to be added in Form 2 by Resolution Professional under IBC

• Interim Resolution Professional is eligible to be appointed as an independent director on the board of the Corporate Debtors under section 149 of the Companies Act, 2013;
• not a related party of the Corporate Debtors; or
• in the last three financial years, was not an employee or proprietor or a partner of-
  • a firm of auditors or secretarial auditors or cost auditors of the Corporate Debtors; or
  • a legal or a consulting firm, that has or had any transaction with the Corporate Debtors amounting to 5% or more of the gross turnover of such firm,

IBBI Circular No. IP/005/2018 dt. 16.01.18

Relationship of the IP with	Disclosure to be made within 3 days of
Corporate Debtor	his appointment.
Other Professionals appointed by him -Valuer(s), Accountant(s), Legal, Others	appointment of the Professional.
Financial Creditor(s)	the constitution of CoC
Interim Finance Provider(s)	the agreement with the Interim Finance Provider.
Prospective Resolution Applicant(s)	the supply of IM the Prospective RA.
If relationship with any of the above comes to notice or arises subsequently	of such notice or arising.

Relationship of other professionals

Relationship of the other Professional(s) with	Disclosure to be made within 3 days of
The Insolvency Professional	the appointment of the other Professional.
Corporate Debtor	the appointment of the other Professional.
Financial Creditor(s)	constitution of CoC.
Interim Finance Provider(s)	the agreement with the Interim Finance Provider or the appointment of the other Prof., whichever is later.
Prospective Resolution Applicant(s)	the supply of IM to the Prospective RA Applicant or 3 days of the appointment of the other Prof., whichever is later.
If relationship with any of the above comes to notice or arises subsequently	of such notice or arising.

Relationship

Kind	Nature of Relationship
A	Where the IP or the Other Professional, as the case may be, has derived 5% or more of his / its gross revenue in a year from professional services to the related party.
B	Where  Where the IP or the Other Professional, as the case may be, is a party.  shareholder, Director, Key Managerial Personnel or Partner of the relate related party.
C	Where Where a relative (Spouse, Parents, Parents of Spouse, Sibling of Self and S   and spouse, and Children) of the IP or the Other Professional, as the case c  case may be, has a relationship of kind A or B with the related party.
D	Where Where the IP or the Other Professional, as the case may be, is a partner partner or director of a company, firm or LLP, such as, an Insolvency Preprofessional Entity or Registered Valuer, the relationship of kind A, B or    B or C of every partner or director of such company, firm or LLP with t with the related party

Disclosure of FEE & other Expenses incurred by Resolution Professional

Circular No. IBBI/IP/013/2018 dt. 12th June, 2018

• FORM I – by the IRP within 7 days of demitting office.
• FORM-II – by the IRP within 7 days of demitting office.
• FORM III – by the IRP within 7 days of demitting office.

Forms to be Filed By Resolution Professional

• IBBI Circular No. IBBI/CIRP/023/2019 dated 14th August, 2019

Form No.	Period covered and scope	Timeline
IP 1	Pre-Assignment	Within 3  days
CIRP 1	From Commencement of CIRP till Issue of Public Announcement	Within 7 days of  Public Announcement
CIRP 2	From Public Announcement till replacement of Interim Resolution Professional	Within 7 days of replacement of Interim Resolution Professional
CIRP 3	From Appointment of Resolution Professional till issue of Information Memorandum (IM) to Members of CoC	Within 7 days
CIRP 4	From Issue of IM till issue of Request for Resolution Plans (RFRP)	Within 7 days
CIRP 5	From Issue of RFRP till completion of CIRP	Within 7 days

 

Form No.	Period covered and scope	Timeline
CIRP 6	Event Specific	Within 7 days of the occurrence of event.
CIRP 7	Reporting of status of ongoing corporate insolvency resolution processes (CIRPs)	Within 3 days of specified time
CIRP 8	Details of preferential and other transactions	on or before 140th day from insolvency commencement date. CIRP ongoing /commence on or after 14.07.2021

Form 6: Event Specific

a.	Filing of application in respect of preferential, undervalued, fraudulent, and extortionate transaction (PUFE)
b.	Raising interim finance
c.	Insolvency resolution process of guarantors
d.	Extension of period of CIRP and exclusion of time
e.	Premature closure of CIRP (appeal, settlement, withdrawal, etc.)
f.	Request for liquidation before completion of CIRP
g.	Non implementation of resolution plan as approved by the AA

Form 7 :

a.	Public announcement is not made by T+3rd day
b.	Appointment of Resolution Professional is not made by T+30th day
c.	IM is not issued within 51 days from the date of public announcement
d.	RFRP is not issued within 51 days from the date of issue of IM
e.	CIRP is not completed by T+180th day
	Form CIRP 7 shall be available for filing three days prior to the due date
	Only one Form is to be filed at any time if  more than one activity is not completed by the specified date. Subsequent filing of Form CIRP 7 shall be made after 30 days have lapsed from the filing of an earlier Form CIRP 7.

Time Based Reports applicable on insolvency resolution professional

• Monthly Status Report by 7^th of every month
• Half Yearly Report for the period
  • 1st April to 30th September by 15th  October
  • 1st October to 31st March by 15^th    April                                                                          

Circular No. IBBI/CIRP/36/2020 dt. 27.11.2020

• Filing of list of creditors under regulation 13(2)(ca) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (w.e.f. 13.11.2020)

Copy of Application to IBBI

• IBBI/LAD/35/2020 dt. 29.10.2020: Copy of the application for initiating corporate insolvency resolution process against a corporate debtor, to the Board, before filing the same with the Adjudicating Authority.
• IBBI/II/39/2021 dt. 02.02.2021 : Copy of the application for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors to the Board

Filing List of Stakeholders:

• IBBI/LIQ/40/2021 dt. 04.03.2021 : Filing of list of stakeholders under regulation 31(5)(d) of the IBBI (Liquidation Process) Regulations, 2016

MCA Circular 8/2020 dt. 06.03.2020

• IRP/RP/Liquidator to file Form INC 28 on appointment with order of the Adjudicating Authority (AA).
• Designation as CEO and at Serial No. 5(a) (iii) select appropriate section of IBC.
• Thereafter all forms like AOC-4, MGT-7, to be filed as attachment to Form GNL 2.
• In the field no.3 to choose Radio button ‘Filing under IBC’.
• Against date event and Board meeting mention date of order of AA.