Computation of fee payable for delay in filings under regulation 40B of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Last updated: 05 December 2020

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This notification from the Insolvency and Bankruptcy Board of India (IBBI) clarifies the calculation of fees for late submissions under Regulation 40B of the CIRP Regulations. A fee of ₹500 per form per month is payable for delays after 1st October 2020. The fee is calculated from the later of the due date or 1st October 2020, up to the actual filing date. The IBBI will also refund excess fees paid in specific situations, including technical glitches, duplicate payments, or incorrect calculation from the original due date.

Insolvency and Bankruptcy Board of India

7th Floor, Mayur Bhawan, Connaught Place, New Delhi-110001

Clarification

No. IBBI/CIRP Forms/2020

4th December, 2020

Subject: Computation of fee payable for delay in filings under regulation 40B of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The Board is in receipt of a few emails from IPs seeking clarification on the above subject.

2. It is clear from the sub-regulation (4) of regulation 40B of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) that a fee has to be paid for delay after 1st October, 2020. The said regulation reads as under:

“The filing of a Form under this regulation after due date of submission, whether by correction, updation or otherwise, shall be accompanied by a fee of five hundred rupees per Form for each calendar month of delay after 1st October, 2020.”

3. Therefore, it is clarified that fee is payable for the period that lapses between the due date of filing a Form or 1st October, 2020, whichever is later, and the actual date of filing the said Form.

4. It appears that a fee, higher than what is payable under the CIRP Regulations, has been paid along with filings of some Forms. These have happened in three situations, namely,

(i) fee has been paid for delay in submission of Form, which was on account of technical glitches;

(ii) fee has been paid twice for filing the same Form; and

(iii) fee has been paid for the delay from the due date.

5. It has been decided to refund the excess fee paid in these three situations.

-Sd-

(Dr. Kokila Jayaram)

Deputy General Manager

FAQ :

A fee of five hundred rupees per Form is payable for each calendar month of delay after 1st October 2020.

The fee is payable for the period that lapses between the due date of filing a Form or 1st October 2020, whichever is later, and the actual date of filing the Form.

Yes, the IBBI has decided to refund excess fees paid in cases where the delay was due to technical glitches, fee was paid twice for the same form, or fee was paid from the original due date instead of the later date.

The fee is applicable for delays occurring after 1st October 2020.

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Notification No : No. IBBI/CIRP Forms/2020
Published in Corporate Law
Source : https://www.ibbi.gov.in/uploads/legalframwork/60e18951f684c85b59ab3485e25081aa.pdf

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