Wednesday, December 6, 2017



1)  A  person  claiming  to be   a workman or an  employee  of the corporate debtor  shall submit proof of claim  to the liquidator  in person by post or by electronic means in Form E of Schedule II

2)  When  there  are dues to numerous  workmen  or employees  of the corporate debtor, an authorized  representative  may  submit  one proof of claim  for all such  dues on theri behalf  in Form F  of schedule II

3) Existence of  dues to workmen or employees may be proved  by them, individually or  collectively on the basis of

a)  records  available  in an information utility if any or

b)   other   relevant  documents  which adequately establish  the dues, including  any or all of the following

i)   a proof of employment  as contract of employment for the period  for which  such workmen  or employees  is claiming dues

ii)  evidence of  notice demanding   payment of unpaid  amount and any documentary or other proof  that payment  has not been made, and

iii)   an order  of a court  or tribunal that has adjudicated  upon the non payment of dues, if any

4   The liquidator  may admit   the claims   of a workmen or an employee  on the basis  of the books of account  of the corporate debtor if such  workmen or employee has not made a claim

Regulation No 20    Claims by other stakeholders 

1)  A person, claiming  to be  a stakeholder  other than those under Regulations  17 (1), 18 (1)  or 19 (1)   shall submit   proof of claims  to the  liquidator  in person, by post or by electronic means in Form G of Schdule  II

2)  Existence of  the claim of the stakeholders   on the basis of
 a)   the  records  available  in on information utility  if any or

b)   other relevant  documents  which adequately   establish  the claim,  including any or all of the following

i)  documentary evidence  of notice demanding  payment of unpaid  amount or bank statements of the claimant showing that the claim has not been paid and an affidavit  that the documentary evidence  and bank statements are true, valid and genuine

ii) documentary or electronic  evidence of the shareholding and

iii)   an order  of  a court,  tribunal or other authority    that has   adjudicated  upon the non payment  of a claim if any

Regulation No. 21   Proving  security interest

The existence of a security  interest may be proved  by a secured  creditor  on the basis of

a)   the records available  in an information utility, if any
b)  certificate of registration of charge issued  by the Registrar of Companies or
c)   proof of  registration of charge  with the Central  Registry  of Secularization Asset  Reconstruction  and Security interest of india

Regulation No. 22   Production of bills of exchange and promissory notes

Where a person   seeks to  prove a debt  in respect of bill of exchange, promissory notes or other negotiable instrument or security  of  a  like nature  for which the corporate debtor  is liable, such bill of exchange , note,  instrument or security  as the case may be  shall be produced  before the  liquidator   before the claim is admitted

Regulation No. 23   Substantiation of claims

 The liquidator call for such  other evidence  or clarification  as he deems fit   from a  claimant  for substantiating  the  whole or part of the claim

 Regulation No. 24    Cost of proof

 1)  A  claimant  shall bear  the cost  of proving its claim

2)   Costs incurred  by the liquidator  for verification and determination of a claim  shall form part of liquidation cost

Provided if a claim or part of the claim  is found to be  false,  the liquidator   shall   endeavor  to  recover  the costs incurred   for verification and determination of claim    from  such claimant   and  shall provide  details  of the claimant to the Board

Regulation No. 25  Determination of  claim 

 When the  amount claimed  by a claimant  is not precise due to any  contingency or any  other reason, the liquidator  shall make the best estimate of the amount of the claim  based on the information available with him

Regulation No. 26  Debt in foreign currency

  The  claims  denominated  in foreign currency shall be  valued  in Indian currency or   the official  exchange rate  as on the date of  the liquidation commencement date

The official exchange rate  is the reference   rate published by the  Reserve Bank of India  or  derived  such  reference notes

Regulation No. 27   Periodical payments 

  Rent  interest  and such other payments are periodical in nature
A person  may claim  only  for any amount due and unpaid  up to the liquidation commencement date

Regulation No. 28  Debt payable on future time 

1)   A person may prove  for a claim whose payment was not yet due  on the liquidation commencement date and is  entitled to distribution in the same manner  as any other  stakeholder

2)  Subject to any contract  to the contrary, where a stakeholder has proved that a claim under sub regulation (1)  and the debt  has not fallend due before distribution, he is entitled to distribution of the admitted  claim  reduced as follows.

 Regulation No. 29  Mutual credits and set off

  Where there are mutual dealings between the corporate debtor and another party, the sums  due from one party   shall be set off against  the same due from the other to arrive  at the net amount payable  to the corporate debtor or to the other party

Illustration  Rajesh owes   Rs.1000    to the corporate debtor.  The corporate debtor owes  Rs.700 to Rajesh.  After set off Rs.300  is payable by Rajesh   to the corporate debtor.

 Regulation No. 30  Verification of claims

 The liquidator  shall verify the claims  submitted  within 30 days  from the last date of receipt of claims  and amy either admit   or reject   the claim , in whole or in part as the case may be

Regulation No. 31  List of stakeholders

 1)  The  liquidator  shall prepare  a list of  stakeholders, category wise, on the basis  of  proofs of claims  submitted  and accepted  under these regulations with-

a)  the amounts of claim admitted if applicable

b)   the extent  to which   the debts  or dues  are secured or unsecured if applicable

c)  the details  of the stakeholders and

d)   the proofs admitted or rejected in part,   and the  proofs  wholly rejected

2)   The liquidator  shall file  the list of stakeholders  with the Adjudicating authority within forty five days  from the last date  of  receipt of claims,  and the filing  of the list  shall be announced  to the public  in the manner  specified  in Regulation   12 (3)

3)  The liquidator  may apply to the Adjudicating authority to modify  on entry  in the list of stakeholders  filed with  the Adjudicating authority, when  he comes  across   additional  information   warranting such modification and shall  modify the  entry in the manner  affected by the adjudicating authority

4) The  liquidator   shall modify  an entry in the list  of stakeholders filed with the Adjudicating authority in the manner  directed  by the Adjudicating  Authority   while disposing  of an appeal preferred under Section 42

5)  The list of stakeholders  as modified  from time to time shall be-

a)   available  for inspection  by the persons   who  submitted  proofs of claim

b)   deployed  on the website, ( if any of the corporate debtor)

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