As per Section 53 (e) , any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date;
f) any remaining debts and dues;
If the sales tax dues claimed during liquidation pertain to period ...
Can a statutory authority attach a property of the CD for non-payment of current dues even when the moratorium is in place and matter is pending in
SC. also they are insisting on filing claims when the liquidation application has already been filed with NCLT.
solicit your views.
Illustration: CIRP period 01st April 2020 to 31st March 2021. CIRP period is still continuing. Insolvency commencement date is 14 February 2020. All the charges were calculated till 13 February 2020 and were submittied by Creditors. Now RP is desirous of preparing financials for FY 20-21 (April 2020 till March 2021)
To finalize financials of CIRP period, should RP consider interest cost accrued during CIRP Period of the financial creditors.
Currently CIRP process is going on. CIRP Commencement date is 14th February 2020. During CIRP it was realized that 2018-19 audit was also not done. Accordingly 2018-19 statutory audit was done and promoter directors have signed the financials. Further, 2019-20 transactions are to be reversed as promoter director himself admitted that there are fraudulent transactions and hence awaiting for him to finalize all the corrections to make write offs so that audit can be do...
What is meant by Cost of realization under regulation 36 of IBBI ( Liquidation) Regulations 2016.
Which components forms part of Cost of Realization ?
Whether Auction documents preparation charges, drafting of Sale certificate, Auction platform charges consitute part of cost of realization ?
1. I am appointed as Liquidator of one of the Corporate Debtors.
2. During the liquidation period in terms of Section 35(1)(e), the business of the Corporate Debtor is being carried on by the Liquidator for its beneficial liquidation for maximization of value to the stakeholders.
3. Since the operations are being carried on for beneficial liquidations, assets of Liquidation Estate being Trade Receivables & Cash Equivalents as on the Li...
The Corporate Debtor is undergoing liquidation proceeding in terms of the order of the Adjudicating Authority. The relevant details of the Corporate Insolvency Resolution Process are given hereunder:
Liquidation Treatment of Liquidation account
Posted By : Reshma Mittal | 03-06-2021, 06:04 PM
After filing application for disolution of CD u/s 33(2), How to proceed with the CD Liquidation account maintained with the bank?
Avoidence application is pending, hence if all remaining amount is distributed to stakeholders and bank account is closed, how the future legal expenses shall be paid?
Records of CD are to be kept for 8 years, If Bank account is closed , how the payment to Storage service provider shall be made?
Views of experts please
Liquidation SALE OF ASSETS U/S 32 of LIQUIDATION REGULATIONS
Posted By : Reshma Mittal | 01-06-2021, 12:01 PM
Land of CD is in the name of its subsidiary company. CD holds 96% shares in it and rest are with the promoters. Land is major component of valuation. Buildin , Plant & Machineries are erected/installed on it. In such condition in which manner it would be more approperiate to sold the assets of CD under liquidation
CIRP Sec 7 application wrt Security Deposit default disputed by CD
Posted By : Manoj Kumar Anand | 01-06-2021, 08:55 AM
1. CD has given Rs 1.00 Crore as security deposit to a Company (Buyer) for rendering logistic services to them.
2. Consequently, Company (Buyer) didn’t make payment to CD alleging deficiency in service....
Liquidation LIQUIDATION FEES
Posted By : Abhay Narayan Manudhane | 31-05-2021, 08:57 PM
Regulation 4(2)(b) of IBBI (Liquidation Process) Regulations, 2016 prescribes liquidators fees in a table which specifies:
i) % age of fees payable on amount of realization
ii) %age of fees payable on amount distributed to stakeholders. (this is 50% of the fees payable on amount of realization)
Whilest there is no issue on this structure, Regulation 4(3) further specifies:
CIRP Invoking Corporate Guarantee
Posted By : RENUKA DEVI RANGASWAMY | 31-05-2021, 03:00 PM
Dear Learned Friends,
A FC is possessed with a Corporate Guarantee from the Holding company for the finance made to WoS Co( Borrower).
Now borrower not defaulted but the Corporate Guarantor went into CIRP.
Kindly guide :
1) Whether FC can invoke CG and file a claim before Corporate Guanator?
2) If not possible for the reason original borrower not defaluted, then next queires?
* If ...
Personal Guarantor to Corporate Debtor Reg-4- Eligibility of resolution professional (IBBI -Insolvency Resolution Process of PG to CD)Reg-2019
Posted By : RENUKA DEVI RANGASWAMY | 31-05-2021, 02:36 PM
Dear Learned Friends,
As per the above captioned title, whether RP of CD is eligible to be appointed as the RP for Personal Guarantor also.
By careful reading of the Reg-4 (1) (c) Explanation - c, which is reproduced here:
(c) has not acted or is not acting as interim resolution professional, resolution professional or liquidator in respect of the corporate debtor;
shall we interpret that,
Liquidation Liquidation as a Going Concern
Posted By : Darshan Bharatbhai Patel | 31-05-2021, 02:23 PM
My Query:- 1
Liquidation as a going concern - what is a yard stick ?
If a CD is not having any employee but has business presence and contacts to do profitable business but due to finanical distress it can not be revived undre CIRP - can it be revived at liquidation stage ?
My Query:- 2
Whether Income tax carried forward losses which are available as per IT act to the CD- will be available to a buyer in case of GCS ? Wh...
CIRP Land held in director and relative partnership firm and Building in Companies Name which is again mortgage to the Bank.
Posted By : Akhilkumar Amrutlal Thakkar | 31-05-2021, 02:10 PM
What will be alternates available to Resolve the Company likewise (Invocation of Personal Guarantees etc.). Can anyone guide all the alternates in detail....
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