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.
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