The Insolvency and Bankruptcy Code (IBC) 2016 is designed to streamline and consolidate the laws governing insolvency and bankruptcy for corporate entities, partnerships and individuals. Enacted to address the inefficiencies of previous insolvency frameworks, the IBC 2016 provides a time-bound, efficient mechanism for resolving financial distress, maximizing asset value, promoting entrepreneurship and balancing the interests of all stakeholders. Central to the operationalization of this code are the forms under the Insolvency and Bankruptcy Code 2016 which are standardized documents that facilitate various stages of insolvency and bankruptcy proceedings. These forms ensure transparency, efficiency and compliance, making them indispensable tools for creditors, debtors, insolvency professionals and adjudicating authorities.
Unlock new career opportunities with The Legal School’s Certification in Bankruptcy & Insolvency Law: Corporate Restructuring & Debt Resolution, in collaboration with IndusLaw. This six-month program, led by industry experts, equips you with critical skills in insolvency litigation, financial distress management and corporate rescue strategies. Earn a prestigious certificate and elevate your expertise in a rapidly evolving field!
What are Forms Under the Insolvency and Bankruptcy Code 2016
The forms under the Insolvency and Bankruptcy Code 2016 are critical for the smooth functioning of insolvency and bankruptcy processes. They serve several key purposes:
Standardization: Forms provide predefined formats for submitting information, ensuring consistency across applications and reducing the likelihood of errors or omissions.
Transparency: By requiring detailed disclosures, forms make the insolvency process transparent, allowing all stakeholders creditors, debtors, insolvency professionals and adjudicating authorities to access and understand critical information.
Efficiency: Standardized forms streamline the process by minimizing the time spent on preparing and reviewing documents which is essential for meeting the time-bound requirements of the IBC.
Legal Compliance: Using the correct forms ensures that all legal and regulatory requirements are met, reducing the risk of procedural challenges or rejections.
Accessibility: Forms are readily available on the IBBI website, making them easily accessible to all stakeholders involved in insolvency proceedings.
These forms are used at various stages, from initiating proceedings to submitting claims, proposing resolution plans and concluding liquidation or bankruptcy processes.
Learn about Bankruptcy Lawyers
Key Forms Under the Insolvency and Bankruptcy Code 2016
The forms under the Insolvency and Bankruptcy Code 2016 are categorized based on the specific process they pertain to, as given in various regulations issued by the IBBI. Below is a detailed overview of the key forms used in different processes, based on the regulations such as the Insolvency Resolution Process for Corporate Persons (2016), Liquidation Process (2016), Voluntary Liquidation Process (2017) and others.
1. Forms for Corporate Insolvency Resolution Process (CIRP)
The Corporate Insolvency Resolution Process (CIRP) is designed to resolve the insolvency of corporate debtors by finding a viable resolution plan to revive the business. The process is initiated by a financial creditor, operational creditor or the corporate debtor itself and it involves a committee of creditors that evaluates resolution plans. The following forms are commonly used
Form | Purpose | Details |
Form A | Public Announcement of Insolvency Resolution Process | Used to make a public announcement when the CIRP is initiated, typically within three days of the appointment of an interim resolution professional. It includes details such as the corporate debtor’s name, the amount of default, and the interim resolution professional’s contact information. |
Form B | Proof of Claim by Operational Creditors | Operational creditors, such as suppliers or service providers, use this form to submit their claims against the corporate debtor, detailing the amount owed and supporting documents. |
Form C | Proof of Claim by Financial Creditors | Financial creditors, such as banks or financial institutions, submit their claims using this form, including details of the debt and any security held. |
Form G | Invitation for Expression of Interest (EOI) | Used by the Resolution Professional to invite prospective resolution applicants to submit Expressions of Interest to participate in the resolution process. |
Form H | Compliance Certificate for Resolution Plan | Used by the Resolution Professional to certify compliance of the approved resolution plan with the Insolvency Resolution Process Regulations before submitting it to the Adjudicating Authority. |
2. Forms for Liquidation Process
When the CIRP fails to produce a viable resolution plan, or if liquidation is preferred, the corporate debtor enters the liquidation process. The following forms are used
Form | Purpose | Details |
Form A | Public Announcement of Liquidation | Issued by the liquidator to publicly announce the commencement of liquidation, inviting stakeholders to submit their claims within the prescribed period. |
Form B | Proof of Claim in Liquidation | Creditors submit their claims during the liquidation process to receive their share from the liquidation estate, including details of the debt and supporting documents. |
Form H | Compliance Certificate | Used by the liquidator to certify compliance with the liquidation process regulations, which is then submitted to the NCLT upon completion. |
3. Forms for Voluntary Liquidation Process
Voluntary liquidation allows solvent companies to wind up their affairs voluntarily. The process requires a declaration of solvency and approval from members and creditors. Key forms include
Form | Purpose | Details |
Form A | Declaration of Solvency | The corporate debtor declares its solvency and intention to undergo voluntary liquidation, requiring approval from a majority of directors and creditors representing two-thirds of the debt value. |
Form B | Proof of Claim in Voluntary Liquidation | Creditors submit their claims during voluntary liquidation, similar to the liquidation process, to receive their share of the proceeds. |
Form H | Compliance Certificate | Used by the liquidator to certify that the voluntary liquidation process has been conducted in accordance with the regulations. |
4. Forms for Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms
The IBC 2016 also provides mechanisms for individuals and partnership firms which includes the Fresh Start Process, Insolvency Resolution Process and Bankruptcy Process. Key forms include:
Form | Purpose | Details |
Form A (Fresh Start) | Application for Fresh Start Process | Eligible debtors with low debt levels apply to the DRT for discharge from certain debts, providing details of their financial situation. |
Form A (Insolvency Resolution) | Application for Insolvency Resolution Process | Debtors or creditors apply to the DRT to initiate the insolvency resolution process for individuals or partnerships, including a proposed repayment plan. |
Form A (Bankruptcy) | Application for Bankruptcy | Filed with the DRT by creditors or debtors when the insolvency resolution process fails or is rejected, initiating bankruptcy proceedings. |
5. Forms for Pre-packaged Insolvency Resolution Process (PIRP)
Introduced in 2021 for MSMEs, the PIRP allows for a resolution plan to be prepared before filing for insolvency. Forms P1 through P14 are used for various stages, such as application, creditor claims and resolution plan submission.
Read Section 33 of IBC and get a detailed overview of Liquidation Procedure.
Accessing the Forms under Insolvency and Bankruptcy Code 2016
All forms under the Insolvency and Bankruptcy Code 2016 are available for download on the official website of the Insolvency and Bankruptcy Board of India (IBBI). The ‘Downloads’ section categorizes forms based on the relevant regulations, such as
Insolvency Resolution Process for Corporate Persons (2016)
Fast Track Insolvency Resolution Process for Corporate Persons (2017)
Liquidation Process (2016)
Voluntary Liquidation Process (2017)
Insolvency Resolution Process for Personal Guarantors (2019)
Bankruptcy Process for Personal Guarantors (2019)
Pre-packaged Insolvency Resolution Process (2021)
Stakeholders are encouraged to check the IBBI website regularly for updates, as forms may be amended to reflect changes in regulations.
Tips for Filling Out Forms Under the Insolvency and Bankruptcy Code 2016
Correctly filling out the forms under the Insolvency and Bankruptcy Code 2016 is important to avoid delays, rejections or legal complications. Given below are some practical tips
Understand the Purpose: Before filling out a form, ensure you understand its specific purpose and the information required. For example, Form A for CIRP is for public announcements, while Form B is for creditor claims.
Provide Complete Information: Fill out all required fields accurately and completely. Incomplete forms may be rejected by the NCLT (Section 60 of IBC) of, DRT, or resolution professional.
Use the Latest Version: Always download the most recent version of the form from the IBBI website since forms are periodically updated to reflect regulatory changes.
Attach Supporting Documents: Many forms require supporting documents, such as proof of debt, identification or financial statements. Ensure all required documents are included.
Follow Submission Guidelines: Pay attention to where and how the form should be submitted. For example, some forms are filed with the NCLT, while others are submitted to the resolution professional or IBBI.
Seek Professional Help if Needed: If you’re not sure about any aspect of the form or process, consult an insolvency professional or legal expert to ensure compliance.
Summary
The forms under the Insolvency and Bankruptcy Code 2016 provide a structured and standardized framework for handling the complex processes of insolvency resolution, liquidation and bankruptcy. By ensuring transparency, efficiency and legal compliance, these forms help stakeholders creditors, debtors, insolvency professionals and adjudicating authorities navigate the insolvency landscape with greater ease. Understanding and correctly using these forms is essential for achieving successful outcomes in insolvency proceedings. As the IBC 2016 continues to evolve, staying informed about the latest forms and regulations on the IBBI website is crucial for all parties involved.
Related Posts
Forms under Insolvency and Bankruptcy Code 2016: FAQs
Q1. What is Form 3 and Form 4 of IBC?
Form 3 is a demand notice sent by an operational creditor to a corporate debtor for unpaid debt under the Insolvency and Bankruptcy Code (IBC). Form 4 is an invoice demanding payment, used as an alternative to Form 3.
Q2. What is Form A under IBC?
Form A is a public announcement made by the Interim Resolution Professional to invite claims from creditors during the Corporate Insolvency Resolution Process (CIRP). It details the debtor’s information and the last date for claim submission.
Q3. What is Form C under IBC?
Form C is used by financial creditors, like homebuyers, to submit proof of their claims against a corporate debtor during the CIRP. It includes details of the debt owed.
Q4. What is Form B in IBC?
Form B is used by operational creditors to submit proof of their claims for unpaid debts during the CIRP. It includes details like debt amount and supporting documents.
Q5. What is Form 3 filed for?
Form 3 is filed by an operational creditor to issue a demand notice to a corporate debtor for unpaid operational debt, initiating the insolvency process if unpaid within 10 days.
