How To Initiate IBC Procedings?

As per the Insolvency and Bankruptcy Code, 2016 (IBC), the following person may initiate IBC proceedings against corporate debtors where such corporate debtors have defaulted;

1. Financial Creditors
2. Operational Creditors
3. Corporate debtor (itself)

Brief of initiation of Insolvency process;

A) '‘Financial Creditor’ – The following three requirements are necessary to file IBC application u/s 7 of the IBC Act;

• The related debt or liability should be covered by the financial debt as defined in U/s 5(8) of IBC, i.e. any debt paid out against the consideration for the time value of money, i.e. interest, and includes other debts as described in the above section, and
• There must be an default in discharge of the above said liability, and
• The sum total of whole default must be Rs. 100,000/-or more.

B) 'Operational Creditor' – The procedure for the operational creditor is somewhat different. The operational creditor shall comply with the following requirements in order to initiate the IBC proceeding;

• The related debt or liabilities will be covered under 'Operation Debt,' which is specified as u/s 5(21) of IBC, i.e. all claims relating to the supply of goods/service/employment or payable to the Government.
• There has been a default in the discharge of the above liability, and
• The number of these defaults should be Rs.100,000/-or more,
• Notice of request U/S 8 has been sent to the corporate debtor and
• Neither payment nor notice of dispute was issued within 10 days of the issuance with the above-mentioned document.

C) 'Corporate Debtor' – In compliance with section 10 of the IBC, a corporate debtor can also begin insolvency proceedings against him if the following requirements are met;

• The corporate debtor has undergone defaults, whether in terms of operating debt or financial debt, or any other and
• The sum of this default will be Rs. 100,000/-or more.

FORMS, FEES, AND DOCUMENTS FOR IBC APPLICATION

Brief of particular form of required for initiating IBC are as follows:

About Rajput Jain & Associates

Our Insolvency Professional Team/department is well trained having in-depth Knowledge, expertise and experience in the area of preliminary study, planning and filing of Insolvency Application as per the provision of IBC2016. On the basis of circumstances, we are providing dedicated & result-oriented solutions. We also have well experienced secretarial support in the secretarial duties of the Resolution Professionals. We can also support the Resolution Professionals though experienced Team of Insolvency professionals or department. These programs shall provide the following:

• Issuing a public announcement in the media in compliance with the rules of the Insolvency and Bankruptcy Board of India Regulations (Insolvency Resolution Process for Corporate Persons), 2016.
• Preparation and creation of the agenda for the meeting of the Creditors' Committee. The plan is prepared by our team of specialists in compliance with IBC 2016.
• Preparation, implementation and notice of the meeting by effective means. Our team shall prepare a notice in accordance with the guidelines of the Insolvency and Bankruptcy Board of India Regulations (Insolvency Resolution Process for Corporate Persons) 2016.
• Preparation and implementation of the minutes of the meeting;
• Shall prepare an action report based on decisions taken at previous meetings.
• Compilation of Information Memorandum as per the Insolvency and Bankruptcy Board of India Regulations (Insolvency Resolution Process for Corporate Persons), 2016. 2016. The Memorandum of Information shall contain the financial details of the Corporate Debtor.
• Communications with banks and regulatory bodies surrounding the start of corporate insolvency. Our department maintains that IBC 2016 is completely compliant.
• We also have additional assistance, such as organising Two Registered valuer appointment for the valuation of assets of corporate debtors, security services for the security of the physical assets of the Corporate Debtor and E-voting / IT assistance.

We have highly trained insolvency practitioners who are well trained in insolvency law and having fair expertise in dealing with such cases.

For more information, please email us at singh@carajput.comor call our expert at 9555555480