IBBI Circular Mandates Insolvency Professionals To File Forms For Monitoring Voluntary Liquidation Processes on Electronic Platform

IBBI Circular Mandates Insolvency Professionals To File Forms For Monitoring Voluntary Liquidation Processes on Electronic Platform

The Insolvency and Bankruptcy Board of India (IBBI) issued a circular on June 28, 2024, directing Insolvency Professionals to file forms for monitoring Voluntary Liquidation processes under the Insolvency and Bankruptcy Code (IBC) exclusively through the electronic platform hosted on IBBI's.

According to the circular, Insolvency Professionals must access the platform using a unique username and password provided by IBBI. They are required to upload and submit the forms, including relevant information and records, after affixing a Digital Signature Certificate (DSC) or e-signature.

The circular emphasizes that the timely submission of complete and accurate information, along with records, is the sole responsibility of the Insolvency Professional.

IBBI has issued the following directions for the Insolvency Professionals to file the forms on the electronic platform only:

• Forms must be filed within the specified timeline for all cases where a voluntary liquidation process commences on or after the date of this circular.

• Insolvency Professionals handling cases without an application for dissolution of the corporate person must submit Form VL 1 by September 30, 2024.

• For cases with delays or where the liquidator is replaced, Form VL 2 must also be filed by the same deadline.

• Cases where applications for dissolution or withdrawal/suspension of voluntary liquidation are filed with the Adjudicating Authority (AA) require filing of Forms VL 1, VL 2, and VL 3 by September 30, 2024.

• Cases where AA orders dissolution of the corporate person or withdrawal/suspension of voluntary liquidation processes need Forms VL 1, VL 3, and VL 4 submitted by September 30, 2024.

The Board clarifies that failure to comply with Code provisions and related regulations may result in accountability, including:

1. Failure to submit required forms along with relevant information and records.

2. Submission of inaccurate or incomplete information and/or records with the forms.