IBBI Directs Insolvency Professionals To File Liquidation Forms Online

IBBI Directs Insolvency Professionals To File Liquidation Forms Online

The Insolvency and Bankruptcy Board of India (IBBI) issued a circular on June 28, 2024, mandating that Insolvency Professionals must file forms to monitor the liquidation process under the Insolvency and Bankruptcy Code (IBC) exclusively through the electronic platform hosted on IBBI's website.

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

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

Key directives for filing forms on the electronic platform include:

• Forms must be filed within the prescribed timeline for all cases where a liquidation order is passed on or after the issuance of this circular.

• Cases in which no application for dissolution of the corporate debtor or closure of the liquidation process has been filed must submit forms LIQ 1 and LIQ 2 (for the March 2024 quarter) by September 30, 2024.

• Cases where an application for dissolution or closure has been filed with the Adjudicating Authority (AA) must submit forms LIQ 1 and LIQ 2 (for the last quarter of the process), and form LIQ 3 by September 30, 2024.

• Cases where an order for closure or dissolution has been issued by the AA must submit forms LIQ 1 and LIQ 2 (for the last quarter of the process), LIQ 3, and LIQ 4 by September 30, 2024.

The circular also states that Insolvency Professionals who fail to comply with the applicable provisions of the Code and its regulations may be held liable for:

1. Failure to file a form along with the relevant information and records.

2. Filing inaccurate or incomplete information and/or records.