Guidelines for Recovery from the business entities facing proceedings under Insolvency and Bankruptcy Code, 2016 (IBC)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... do not turn bad entirely. The objective of the IBC is to save the entities going into liquidation by finding a plan known as resolution plan, which can revive them. The entire process is to be completed by 180 days, extendable by not more than 90 days. 2. In view of limited period of the entire IBC process, it is necessary that in such cases, claims of this department are submitted to the Interim Resolution Professional (IRP) well in time so that interests of revenue can be safeguarded. This circular is aimed at making Officers aware of procedure to be followed in case of recoveries to be made from the entities coming under IBC proceedings. 3. The IBC is applicable on all companies, Limited Liability Partnerships (LLPs), partnerships....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... with the IRP (copy enclosed). The duly filled and signed format is to be supported by the proof of claim mainly assessment order, DRC 1, DRC 7 etc. It is pertinent to mention here that assessment upto the date of moratorium, can be framed and interest is to be charged upto this date. Further no recovery proceedings including bank attachment can be made against the dealer/registered person in respect of whom moratorium has been declared. 6. The IRP is allowed to carry the business of the entity in usual manner and he has to obtain new GSTIN for this purpose. In this regard, notification no. 11/2020-Central Tax dated 21- 03-2020 has been issued by the CBIC. 7. The IRP appoints two valuers and constitute Committee of Creditors (CoC). Th....