FILING OF ‘CIRP-7’ FORM UNDER CORPORATE INSOLVENCY RESOLUTION PROCESS

[Mr. M. GOVINDARAJAN]

Regulation 40A of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (‘Regulations’ for short) provides model time line for corporate insolvency resolution process (‘CIRP’ for short).  The CIRP is to be completed within 180 days from the commencement of CIRP.

Filing forms

Regulation 40B provides for filing of various forms by the Interim Resolution Professional (‘IRP’ for short)/Resolution Professional (‘RP’ for short) along with the enclosures on the website of the Board as per time lines given in this regulation with effect from 27.11.2019.  This regulations requires to file the following forms-

• IP – 1 – Pre-assignment - This includes consent to accept assignment as IRP / RP, the details of IP and the Applicant, the details of the person which will undergo the process, terms of consent, terms of engagement, etc.  This form is to be filed by IRP/RP within three days of signing of Form-2 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 or Form-AA of the Regulations, as the case may be.
• CIRP – 1 - From Commencement of CIRP till Issue of Public Announcement  - This includes-

• details of IRP, Corporate Debtor (‘CD’ for short) and the Applicant;
• admission of application by Adjudicating Authority;
•  public announcement;
• details of suggested Authorized Representatives;
• non-compliances with the provisions of the Code and other laws applicable to the CD; etc. 

This form is to be filed by IRP Within seven days of making the Public Announcement.

• CIRP – 2 - From Public Announcement till confirmation / replacement of IRP - This includes details of-

• Authorized Representative selected by IRPs for a class of creditors;
•  taking over management of the CD;
• receipt and verification of claims;
•  constitution of Committee of Creditors (‘CoC’ for short)’
•  first meeting of CoC;
• confirmation / replacement of IRP;
• applications seeking co-operation of management (if any);
•  expenses incurred on or by IRP;
• relationship of IRP with the CD, Financial Creditors and Professionals; support services taken from IPE; non-compliances with the provisions of the Code and other laws applicable to the CD; etc.

This form is to be filed by IRP within seven days of confirmation/ replacement of IRP under section 22.

• CIRP – 3 - - From Appointment of RP till issue of Information Memorandum (‘IM’ for short) to Members of CoC - This includes-

• expression of interest;
• Request for Resolution Plan and modification thereof;
• evaluation matrix and modification thereof;
• non-compliances with the provisions of the Code and other laws applicable to the corporate debtor etc.

This form is to be filed within seven days of issue of IM to members of CoC.

• CIRP – 4 - From Issue of Information Memorandum till issue of Request for Resolution Plan (‘RFRP’ for short) - This includes-

• expression of interest; RFRP and modification thereof; evaluation matrix and modification thereof;
• non-compliances with the provisions of the Code and other laws applicable to the CD  etc.;

This form is to be filed within seven days of the issue of RFRP.

• CIRP 5 - From Issue of RFRP till completion of CIRP - This includes-

• This includes updated list of claimants;
•  updated CoC;
• details of the resolution applicants;
• details of resolution plans received;
• details of approval or rejection of resolution plans by CoC;
• application filed with AA for approval of resolution plan;
• details of resolution plan approved by the AA;
• initiation of liquidation, if applicable; expenses incurred on or by RP;
• appointment of professionals and the terms of appointment;
•  relationship of the RP with the CD,
•  Financial Creditors, and Professionals; support services taken from IPE;
• non-compliances with the provisions of the Code and other laws applicable to the CD etc.

This form should be filed by RP within seven days of the approval or rejection of the resolution plan under section 31 or issue of liquidation order under section 33, as the case may be, by the AA.

• CIRP – 6 – Event specific – This includes-

•  Filing of application in respect of preferential transaction, undervalued transaction, fraudulent transaction, and extortionate transaction;
• Raising interim finance;
• Commencement of insolvency resolution process of guarantors of the CD;
• Extension of period of CIRP and exclusion of time;
• Premature closure of CIRP (appeal, settlement, withdrawal, etc.);
• Request for liquidation before completion of CIRP; and
• Non implementation of resolution plan, as approved by the AA.

This form may be filed by IRP or RP within seven days of the occurrence of the relevant event.

CIRP - 7

From the above discussion we can infer that form CIRP 1 to CIRP 6 would not be filed until the related activity is not completed for whatever reasons.  This makes the monitoring difficult.  Therefore the Board requires filing form CIRP 7 within 3 days of the due date of completion of any activity stated as below-

• Public announcement is not made within 3 days from the date of commencement of CIRP;
• Appointment of RP is not made within 30 days from the date of commencement of CIRP;
• IM is not issued within 51 days from the date of public announcement;
• RFRP is not issued within 51 days from the date of issue of IM.
• CIRP is not completed within 180 days from the date of commencement of IRP.

The form shall be available for filing three days prior to the due date.   Only one form shall be filed at any time whether one or more activity is not completed by the specified date.  Subsequent filing of form CIRP 7 shall not made until 30 days have lapsed from the filing of an earlier CIRP 7.

This form has five headings under which information has to be filed by the IRP/RP.

1. Details of IP
2. Name of IP – auto populated;
3. Registration number – auto populated;
4. Corporate Debtor/Assignment
5. Name of corporate debtor – auto populated;
6. CIN/LLPIN or Corporate Debtor – auto populated;
7. Insolvency commencement date – auto populated;’
8. Capacity- select from the drop down menu-

• IRP;
• IRP acting as RP under Section 16(5);
• RP.

5. Date of appointment of IRP/RP – auto populated;
6. Process Number – auto populated;
7. Name of bench of Adjudicating Authority- Select the name of the bench from the drop down menu (for eg. Chennai Bench)
8. Status of CIRP
9. No. of days from insolvency commencement date – auto populated (No. of days delay will appear)
10. Last CIRP form filed – CIRP1/CIRP 2/CIRP 3/CIRP 4/No CIRP form filed – select the opt one.
11. Why is Form CIRP – 7 being filed?
    1. Public announcement not made within 3 days of appointment of IRP;
    2. RP not appointed within 40 days of commencement of insolvency;
    3. IM not issued to CoC within 51 days of Public Announcement;
    4. RFRP not issued within 51 days of issue of IM.
    5. CIRP not completed within 180 days of commencement of insolvency.

CIRP 7 for same even was filed : yes/no  - select the correct one

Due date: Due date of filing is to be filled

4. Reasons for delay

Reasons/Status

If Select – reasons will be displayed and the correct one is to be choosed.

• Public announcement not made within 3 days of appointment of IRP-

Reason-

1. Admission order received late;
2. Stay by any court/authority;
3. Any other – indicate the reason.

• RP not appointed within 40 days of commencement of insolvency-

Reason-

1. Resolution not passed by CoC for appointment;
2. AA order not received;
3. Any other – indicate the reason.

• IM not issued to CoC within 51 days of Public announcement-

Reason-

Non co-operation by suspended directors/KMPs etc.

Stay by any court/authority;

Any other  - indicate the reason.

• RFRP not issued within 51 days of issue of IM-

Reason-

1. RFRP not approved by CoC;
2. EOI not received;
3. EOI received but no prospective resolution applicant;
4. Stay by any court/authority;
5. Any other – indicate the reason.

• CIRP not completed within 180 days of commencement of insolvency

1. CoC yet to approve for resolution/liquidation/withdrawal.
2. CoC approved for withdrawal but approval from AA not received;
3. CoC approved for resolution but approval from AA not received;
4. CoC approved for liquidation but approval from AA not received;
5. Stay by any court/authority;
6. Any other – indicate the reason.
7. Remarks to be provided by RP

IRP/RP to provide brief details for reason for delay quoted under section E above. (500 characters)

6. Relevant order

The relevant order of AA/Court if the reason of the delay is its order – to be uploaded.

Declaration  - The declaration is to be given in the format given below-

Declaration

I, [name of IRP/IP] having registration number [Registration No.] being appointed as an Interim Resolution Professiona/Resolution Professional for the insolvency resolution process of [Name of CD], hereby declare that the contents of this form are true and correct to the bet of my knowledge and belief, and nothing material has been concealed.

To be digitally signed/e signed by IP

IP Registration Number

Date:

Place:

If the form is filed late the applicable fee is to be paid.  The fee payable will be displayed in the system itself.  If the fee is not paid the system will not allow uploading the form.  Therefore time line is strictly to be followed by IRP/IP in the CIRP.