Ministry of law and justice, legislative Department, which has introduced a system of Pre-Packed Insolvency Resolution Process through Insolvency and Bankruptcy code, (Amendment) Ordinance, 2021. Further, MCA Notification dated 9th April, 2021, mentioned sections, sub-sections and clauses under Chapter III-A of part II of the Code.
- Firstly, we need to know that, WHAT IS CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP)?
Corporate Insolvency Resolution Process (CIRP) refers to a process, as laid down in the IBC, 2016 for reviewing the Company (corporate debtor) from its position of insolvency.
- HOW TO GO FOR PRE-PACKED INSOLVENCY RESOLUTION PROCESS?
We need to file an Application under section 54C (1) of the IBC, 2016, before the Adjudicating Authority.
- WHAT IS THE PROCESS FOR FILING AN APPLICATION-IN ELECTRONIC FORM?
Step-1: Applicant (Corporate Applicant) shall Submit an application in electronic form, under section 54C (1) of the IBC, 2016 in Form 1, for initiating the process of Pre-Packed Insolvency Resolution Process, along with the fees of Rs. 15,000/-.
Documents to be attached in Form 1:
- Documents or Records, as specified in the Annexure to the form 1;
4. WHAT IS THE PROCESS FOR FILING AN APPLICATION-IN ELECTRONIC FORM FACILITY IS NOT AVAILABLE?
The Application along with the accompanying documents to be submitted in physical form before Adjudicating Authority, in case, Electronic Facility is not available for filing an Application.
Provided in case the documents are bulky or heavy in weight, the same can be submitted in data storage like, CD or USB Flash Drive, through scanned portal able documents format, as acceptable to the Adjudicating Authority.
- A copy of the Application along with the documents shall be submitted to the board by Registered post, speed port or by hand or by electronic means before filing the application to the Adjudication Authority.
- The application shall be filed in accordance with Section 20-24 and 26 of the NCLT Rules, 2016.
- A Corporate Applicant shall also inform to the Adjudicating Authority about the filing of winding up petition against the Corporate Debtor (if any), after become aware about such filing.