LIST OF STAKEHOLDERS TO BE FILED BY LIQUIDATOR IN LIQUIDATION PROCESS

[Mr. M. GOVINDARAJAN]

Liquidation

If the corporate insolvency resolution process does not end in resolution, the Resolution Professional with the consent of the Committee of Creditors may file an application before the Adjudicating Authority for liquidation of the corporate debtor.  If the Adjudicating Authority is satisfied that resolution of corporate debtor is not possible then it may order for liquidation of the corporate debtor.  The order of date is the commencement of liquidation.  The Adjudicating Authority also appoints liquidator to take care of the liquidation proceedings till the dissolution of the corporate debtor.

Regulations

For the purpose of liquidation proceedings the Board framed Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Section 35 of the Insolvency and Bankruptcy Code prescribed the duties and powers of the liquidator.  The liquidator shall make a public announcement calling for claims from the creditors of the corporate debtor.

Claims

The liquidator shall receive or collect the claims of creditors within a period of thirty days from the date of the commencement of the liquidation process.   The liquidator shall verify the claims submitted within such time as specified by the Board.   The liquidator may require any creditor or the corporate debtor or any other person to produce any other document or evidence which he thinks necessary for the purpose of verifying the whole or any part of the claim.   The liquidator may, after verification of claims, either admit or reject the claim, in whole or in part.   Where the liquidator rejects a claim, he shall record in writing the reasons for such rejection.   The liquidator shall communicate his decision of admission or rejection of claims to the creditor and corporate debtor within seven days of such admission or rejection of claims.

List of stakeholders

Section 31 of the Regulation requires the liquidator to prepare the list of stakeholders, category wise, on the basis of proofs submitted and accepted under the provisions of the Regulations.  The list of stakeholders shall contain the following details-

•  the amounts of claim admitted, if applicable;
• the extent to which the debts or dues are secured or unsecured, if applicable;
•  the details of the stakeholders, and
• the proofs admitted or rejected in part, and the proofs wholly rejected.

List to Adjudicating Authority

The liquidator shall file the list of stakeholders with the Adjudicating Authority within 45 days from the last date for receipt of claims, and the filing of the list shall be announced to the public.  Vide amendment, which came into effect from 04.03.2021,  the requirement of public announcement has been dispensed with.

Modification of the list

When the Resolution Professional comes across additional information in regard to any claim and if such requires the modification of the information of the respective claim, the liquidator may apply to the Adjudicating Authority to modify an entry in the list of stakeholders filed with the Adjudicating Authority.  The liquidator shall modify the entry in the manner directed by the Adjudicating Authority.

If a creditor files appeal against the decision of Adjudicating Authority in modification of list of stakeholders, the Liquidator shall modify the entry as directed by the National Company Law Appellate Tribunal.

Inspection

The list of stakeholders, as modified from time to time shall be available for inspection by the persons who submitted the claims.  The same shall be made available for inspection of members, partners, directors and guarantors of the corporate debtor.

Website

The liquidator shall display the list of stakeholders in the website of the corporate debtor.  With effect from 04.03.2021 the liquidator shall display the list of stakeholders on the electronic platform of the Board on its website.

The purpose of this requirement is to improve transparency and enable stakeholders to ascertain the details of their claims at a central platform. This requirement is applicable to every liquidation process (a) ongoing as on the date of notification of Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2021, and (b) commencing on or after the said date.    The Board has made available an electronic platform at www.ibbi.gov.in for filing of list of stakeholders as well as updating it thereof. The platform permits multiple filings by the liquidator as and when the list of stakeholders is updated by him.

Time limit for filing the list

The Board issued a circular for this purpose vide Circular  No.IBBI/LIQ/40/2021, dated 04.03.2021.  The Board, vide this circular, directs that the liquidators are directed to file the list of stakeholders of the respective corporate debtor under liquidation and modification thereof, in the aforesaid format, within 3 days of the preparation of the list or modification thereof, as the case may be. The filings due as 04.03.2021 shall be filed within 15 days of this circular.  The Board also provides the formats in which the information relating to the stakeholders are furnished. 

Information of stakeholders

The Circular provides 7 tables in which information of the claims of the stakeholders are to be provided by the liquidator. The category of stakeholders are as below-

• List of secured financial creditors;
• List of unsecured financial creditors;
• List of operational creditors (workmen);
• List of operational creditors (employees);
• List of operational creditors (Government dues);
• List of stakeholders, if any (other than financial creditors and operational creditors)

Category of stakeholders

This table contains the general information of the stakeholders.  The following are the information are to be provided by the liquidator-

• Name of the corporation debtor;
• Date of commencement of liquidation;
• The list of stakeholders on what date?
• Unpaid insolvency resolution process costs;
• Liquidation costs incurred till the date of information.

The following information is to be provided for each category of stakeholder-

• Summary of claims received;
• Summary of claims admitted;
• Amount of contingent claims;
• Amount of claim rejected;
• Amount of claim under verification;
• Details in Annexure;
• Remarks, if any.

Secured financial creditors

The following information is to be provided in case of secured financial creditors-

• Name of creditor;
• Identification of creditor; (Aadhaar/PAN card number to be provided)
• Details of amount claimed – date of claim and its amount;
• Details of claims admitted –

• Amount of claim admitted;
• No. of claims;
• Amount covered by security interest;
• Whether security interest is relinquished?
• Details of security interest;
• Amount covered by guarantee;
• % of share in total amount of claims admitted;

• Amount of contingent claims;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

Unsecured financial creditors

The following information is to be provided in case of unsecured financial creditors-

• Name of creditor;
• Identification of creditor; (Aadhaar/PAN card number to be provided)
• Details of amount claimed – date of claim and its amount;
• Details of claims admitted-

• Amount of claim admitted;
• Nature of claim;
• Amount covered by guarantee;
• % of share in total amount of claims admitted;

• Amount of contingent claims;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

Operational creditors (workmen)

The following information is to be provided in case of operational creditors (workmen)-

• Name of authorized representative, if any;
• Name of workman;
• Identification of workman;
• Details of claims of received – date of receipt and amount claimed;
• Details of claims admitted-

• Total amount of claim admitted;
• Amount of claim for the period of 24 months preceding the liquidation commencement date;
• Nature of claim;
• % share in total amount claims admitted;

• Amount of contingent claims;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

Operational Creditors (employees)

The following information is to be provided in case of operational creditors (employees)-

• Name of authorized representative, if any;
• Name of Employee;
• Identification of Employee;
• Details of claims of received – date of receipt and amount claimed;
• Details of claims admitted-

• Total amount of claim admitted;
• Amount of claim for the period of 24 months preceding the liquidation commencement date;
• Nature of claim;
• % share in total amount claims admitted;

• Amount of contingent claims;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

Operational creditors (Government dues)

The following information is to be provided in case of Operational Creditors (Government dues)-

• Details of claimant-

• Department;
• Government;
• Identification number;

• Details of claim received-

• Date of receipt;
• Amount claimed;

• Details of claim admitted-

• Amount of claim admitted;
• Nature of claim;
• Amount covered by lien or attachment pending disposal;
• Whether lien/attachment removed?
• % share in total amount claims admitted;

• Amount of contingent claims;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

Operational creditors (other than workers, employees and Government dues)

The following information is to be provided in case of Operational Creditors (other than workers, employees and Government dues)-

• Name of creditor;
• Identification No.;
• Details of claims received – date of receipt and amount claimed;
• Details of claims admitted-

• Amount of claim admitted;
• Nature of claim;
• Amount covered by lien or attachment pending disposal;
• Whether lien/attachment removed?
• Amount covered by guarantee;
• % share in total amount claims admitted;

• Amount of contingent claims;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

Stakeholder if any other than financial creditors and operational creditors

The following information is to be provided in case of stakeholder, if any, other than financial creditors and operational creditors-

• Name of the stakeholder;
• Category of stakeholders (preference shareholders/equity shareholders/partners/others);
• Details of claims received – date of receipt and amount claimed;
• Details of claims admitted-

• Amount of claims admitted;
• Nature of claim;
• Amount covered by lien or attachment pending disposal;
• Whether lien/attachment removed?
• Amount covered by guarantee;
• % share in total amount claims admitted;

• Amount of contingent claim;
• Amount of any mutual dues that may be set off;
• Amount of claim rejected;
• Amount of claim under verification;
• Remarks, if any.

The liquidators are further advised to use the aforesaid format for filing the list of stakeholders with the Adjudicating Authority.

Revised circular

The Board issued a circular on 24.11.2021 in which it proposed modification of the form as stated above.  The Board removes the column ‘Identification No.’ from the particulars of the format stipulated therein.   The rest of the contents remain the same.  The Board directed the liquidator to update the list of stakeholders in line with the circular dated 24.11.2021 within 3 days from the date of preparation of the list or modification thereof, as the case may be.