Brief overview: The Insolvency and Bankruptcy Board of India on 10th June 2024 with the following objectives:
1) Simplify and optimize CIRP forms to reduce compliance burden on IPs while ensuring comprehensive and accurate information for effective monitoring and decision-making.
2) Reduce the data and information IPs need to submit by eliminating duplication, simplifying the reporting process.
3) Adjust compliance deadlines to reduce pressure from overlapping submission dates, enabling better resource management for IPs. Centralize the compliance process by combining reporting systems from IPA and IBBI into IBBI website, eliminating duplication and improving accessibility for stakeholders.
Proposed Changes: To achieve the above objectives, the IBBI is proposing following changes:
1) The IBBI on the recommendations of the Study Group and considering the need to streamline the process and reduce the compliance burden on IPs, proposes to revamp/merge/drop the forms that is being filed by the Insolvency Professionals.
2) It further proposes to move to a monthly compliance reporting framework. IPs will be required to report the status and progress of the CIRP as on the last day of every month, by filing the applicable forms by 10% day of the following month (Except CP-3B). The specific timelines provided in the Code and Regulations for carrying out various activities under CIRP will remain unchanged. Only the reporting of status and progress to IBBI is being aligned to a monthly cycle.
3) The IBBI is proposing the following changes in the form:
a) IP-1 is proposed to be dropped as relevant details are submitted in the assignment Form
b) CP-1 is proposed to be introduced in place of CIRP 1 & CIRP 2 which is to be filed after constitution of COC. The form will include the details about the Corporate Debtor, Insolvency professional, details of admission of application, details of public announcement and the process status.
c) CP-2 is proposed to be introduced in place of CIRP 3 & CIRP 4 which will be filed after the issuance of RFRP. The form will include the details about corporate Debtor, registered valuer appointed, information Memorandum, PRA details & details of RFRP.
d) CP-3A is proposed to be introduced in place of CIRP 5. The form will he dividend into 2 parts which will capture details of the application filed with AA for approval of resolution plan, liquidation or closure (including by way of withdrawal/ settlement/ others). CP-3B will capture details of the order of AA approving the resolution plan or ordering liquidation or closure.
e) CP-4 is proposed to be introduced in place of CIRP 8. The form will capture the details of avoidance transactions reported to AA by the RP.
f) CP-5 is proposed to be introduced in place of CIRP 7. The form will provide provide status of CIRP, reasons for delay, if any, and update on meetings held during the month.
g) CIRP-6 is proposed to be dropped as relevant details are captured in other forms.
Comments: The comments on the discussion paper is to be submitted electronically by 1st July 2024.
Discussion Paper:
