The Ministry of Corporate Affairs vide its circular dated 17th February 2020, has clarified the procedure to be followed by the insolvency professionals who are appointed under IBC, 2016.
Key Highlights:
The insolvency professional/ Liquidator shall first file the NCLT order approving him as the IRP/RP/Liquidator in form INC-28 through the MCA21 portal. Once the INC-28 form is approved by the jurisdictional ROC, only the IP (IRP/ RP/ Liquidator) shall thereafter be allowed to file any form on behalf of the company. The IP shall choose his designation
as “Chief Executive Officer”(CEO), for the purpose of filing e-forms, in
various e-forms.
The Master Data for the company shall, after the approval of Form No.INC28, clearly show that the said company is under CIRP or Liquidation. The IP shall be responsible and will be able to file all necessary documents/ disclosures/ returns for the purposes of compliance under the Companies Act. 2013. For filing e-forms SH-8 and SH-9 and iXBRL, the insolvency professionals shall be allowed to file the same in his role as CEO instead of the form being signed by two Directors. In respect of e-form MGT-7 the IP shall sign the form instead of a Director and thereafter the form would have to be certified by a Company Secretary in practice.
lt is further clarified that if the order of admission of a company (corporate Debtor) into CIRP or into liquidation is stayed or set aside by the Tribunal or Appellate Tribunal or other courts, such order shall be filed in Form INC-28 by the concerned IP. The status of the company and the authorization for filing of forms on behalf of company would then change accordingly.
Click here to read the Notification.
