Submission of claims by the Operational Creditors during Liquidation
January 15, 2019 by Ridhima Chachra
In case no resolution plan comes during CIRP or the resolution plan, if submitted, is not approved, the Corporate Debtor will go under Liquidation. The Liquidator on appointment will invite claims through Public Announcement. The Operational Creditors will then need to file fresh claim before Liquidator complete in all respects as otherwise the same can be rejected by the Liquidator and in such case the Operational Creditors would fail to get any amount from Liquidation proceeds realized out of liquidation of the Corporate Debtor.
If the Company moves into liquidation vide order of the Adjudicating Authority, the operational creditor shall submit his proof of claim in person, by post or by electronic means in Form C of Schedule II under Regulation 17 of the IBBI (Liquidation Process) Regulations, 2016
For individual Workman or Employee – the claim needs to be submitted under Form E of Schedule II of IBBI (Liquidation Process) Regulations, 2016 and for a Group of Workmen or Employees through an authorized representative under Form F of Schedule II of IBBI (Liquidation Process) Regulations, 2016
However, it is recommended that hard copy of notarised affidavit document also (if submitted by electronic means) be submitted to the Liquidator at his address mentioned in Public Announcement made by him along with supporting documents.
It is advised that the claim should be filed complete in all respects and within the timelines as per Public Announcement of the Liquidator so that whenever proceeds are to be distributed by Liquidator in accordance with Section 53 of the Code, the claim of the Operational Creditor is paid accordingly.
Which date to be considered to calculate the claim amount?
The claim submitted by the Operational Creditor shall be as on the liquidation commencement date.
What if the debt claimed is in foreign currency?
The claims of creditors which are denomination in foreign currency shall be valued in Indian currency at the official exchange rate which is the reference rate published by the Reserve Bank of India or derived from such reference rate, as on the date of the commencement of liquidation.
What documents to enclose as proof of operational debt
• Authorised contract/purchase order for supply of goods and/or services
• Proof of delivery/work completion certificate
• Ledger statement of Corporate Debtor in the books of the Operational creditor indicating outstanding receivables.
• Any other document as may be required
The Liquidator may call for such evidence or clarifications from the creditors as he deems fit in order to verify the claim amount.
The formats of respective forms to be submitted by the Operational Creditors are provided in the following links:
Form C-Submission of Claims by Operational Creditor
Form E- Submission of claims by Workmen or Employee
Form F-Submission of claim submitted by authorised representative of Workmen & Employees