The Insolvency Bankruptcy Board of India has released a circular on the extension of time for filing Forms to monitor liquidation and voluntary liquidation processes under the Insolvency and Bankruptcy Code, 2016.
The board has decided to extend the last date of submission of the liquidation and voluntary liquidation forms till December 31, 2024. Further clarifying that, for ongoing liquidation and voluntary liquidation cases, the responsibility for filing all forms shall lie with the Insolvency Professionals (IP) currently handling the process.
Presently, the IPs submit the details regarding the liquidation process to the Board through emails, which is time-consuming and inefficient.
“Moreover, in cases where an application for closure or dissolution has been filed, or a dissolution or closure order has been passed, the IP under whose tenure the said application was filed or the order was passed shall be responsible for filing all forms related to the particular case,” IBBI Circular read.
The liquidation process under IBC is a comprehensive exercise involving several steps and the extension in the time period for reporting about the same by liquidators for one more month is a timely step announced by IBBI, in the interest of proper compliance and accurate reporting.Jyoti Prakash Gadia, Managing Director at Resurgent India
“Reporting of all these steps as per the prescribed formats for each one of the various segments of creditors i.e. financial, operational, and others including employees, etc makes the entire exercise a comprehensive work,” Jyoti Added She further highlighted that the technical and other details also need to be taken care of, which proves to be a cumbersome and time-consuming process.
The extension is in the backdrop of representations and difficulties faced by the liquidator.
The IBBI has issued this circular under sub-section (1) of section 196 of the Insolvency and Bankruptcy Code, 2016.
