Standard Operating Procedure by CBIC for IBC cases.
Standard Operating Procedure by CBIC for IBC cases.
The SOP is formulated "to ensure a robust mechanism of communication from the nominated officer to the field formations and vice versa"
The Central Board of Indirect Taxes and Customs has issued a Standard Operating Procedure ("SOP") to be followed by the NCLT for cases under the Insolvency and Bankruptcy Code, 2016.
A timeline for 90 days is available from the date of commencement of insolvency to file claims, however, it was observed that there is an inordinate delay in filing claims by the Customs and GST Authorities. As a result, the claims extinguish once the resolution plan is approved by the NCLT. The Board further noted that "the authorities then litigate on the rejection of, each claim, despite the settled position that no claims can be raised once the plan is approved and no demands can be raised on the resolution applicant who has taken over the company through such a resolution plan"
The primary reason for such a delay is that the Zonal officer is not informed of the initiation of the process in a timely manner. Consequently, it has been proposed the IBBI must share the details of the public announcements regularly to an identified office/officer/central mechanism. Hence, it has been requested that an office/officer or system in CBIC must be identified and intimated to the IBBI on an urgent basis.
The CBIC directed the Additional Director General, DGPM as the nodal officer to implement the system of information sharing. The Nodal Officer may appoint JC/ADC (TAR), DGPM as an alternate Nodal Officer.
Within 2 working days, the Nodal Officer will disseminate the information received by him to the Zonal Pr./ Chief Commissioners with a copy to the concerned Pr. Commissioner/ Commissioner via the official email and/or a designated WhatsApp group for speedy dissemination of such information. The WhatsApp group, as created by the Nodal Officer, will have ADC/JC concerned (who may be nominated as nodal officer for the Zone) in the Pr./ Chief Commissioner's office, and the Pr. Commissioners/ Commissioners concerned as its members.
Upon filing the claims for pending arrears by the concerned office, the Nodal Officer will be promptly informed of the same via ADC/ JC in the Chief Commissioner's Office (CCO).
The daily exercise to check for any new parties going into insolvency from the website www.ibbi.gov.in will also be undertaken by all field formations for filing timely claims, as necessary.
Communication must be with the Resolution Professional concerning the finalizing of the resolution plan. Timely verification should also be done from the website www.ibbi.gov.in to check if any orders were issued by NCLT with respect to resolution, liquidation, and/or withdrawal of an application.
A monthly report of work done in terms of checking the public announcements, filing of claims, if any, liaison with CIRP for providing updates on cases would be sent to the Nodal Officer by the ADC/JC in the CCO, in the attached Format.
The Nodal officer will submit a consolidated monthly report to the Board for review of progress/ action taken by the field formations.
The Bankruptcy Board of India further requested to formulate the role of GST and Custom Authorities under the IBC in certain key issues.
The GST and Custom Authorities have been classified as operational creditors under the IBC, and are hence requested to file their claims against corporate debtors promptly upon the initiation of the insolvency and resolution process.
