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Important Points for Verifying the Claims under IBC - 2016

Siva Rongali , Last updated: 06 August 2018  


The main intention of this Article is to share my practical knowledge with the IRP’s & Professionals who are rendering the Restructuring & Turnaround Services. As we know that IBC means, it is Paradigm Shift from the Existing ‘Debtor in Possession’ to a Creditor in Control’ regime. The IBC envisages a ‘Creditor in Control’ regime with the Financial Creditors / Operational Creditors / Corporate Applicants Exercising control through IP’s in the Event of a single default in repayment of any Loan or Interest.

Few points to be kept in mind while verifying the Creditors Claim amounts of the Corporate Debtor:

• Claim may have been filed in the wrong Form by a Creditor will not disqualify the claim from being considered.
• Further, if any creditor fails to file proof of claim along with the Form will also not disqualify the claim from being considered.
• Such proof can be filed at a later date but not later than Approval of Resolution Plan.

Following points must be kept in our mind while admitting the Claim Amounts of Operational Creditors:

• Claim must be filed with supporting documents
• Proof of delivery
• Checking of opening balances.
• Verification of invoices (ie., Invoice Amount claimed pertains to the Different group or other group entity but not to Corporate Debtor.)
• Post invoices
• Claiming for Invoices amount which are under disputes
• Debit notes issued by Corporate Debtor
• Any payments made to Operational Creditor by the Corporate Debtor
• TDS deduction
• Admission of interest
( ie., “Explicit agreements or PO terms” must be supported to the interest claimed)
• Exchange rate fluctuations
• Contract termination charges
• Adjustment of Creditor balance & with Debit balances in Corporate Debtor Books.
• Final Admissible claim amount must be extent of available information and details.

Further, I am ready to give Practical Examples for the above mentioned points. Your comments & Suggestions are very valuable for My Professional Career.

Disclaimer: The views expressed in this article are strictly personal. The content of this Article are solely
for informational purpose. It doesn't constitute professional advice or recommendation.

Published by

Siva Rongali
(B.Com, Semi Qualified CA, (LLB).)
Category Professional Resource   Report



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