The Insolvency and Bankruptcy Code, 2016
IBBI (Liquidation Process) Regulations, 2016
Chapter-VII Proceeds of Liquidation and Distribution of Proceeds
Regulation 47: Model time-line for liquidation process.
1[47. The following Table presents a model timeline of liquidation process of a corporate debtor from the liquidation commencement date, assuming that the process does not include compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013) or sale under regulation 32A:
Model Timeline for Liquidation Process
Sl. No. | Section / Regulation | Description of Task | Norm | Latest Timeline (Days) |
(1) | (2) | (3) | (4) | (5) |
1 | Section 33 and 34 | Commencement of liquidation and appointment of liquidator | LCD | 0 = T |
2 | Section 33 (1) (b) (ii) / Reg. 12 (1, 2, 3) | Public announcement in Form B | Within 5 days of appointment of liquidator. | T + 5 |
3 | Reg. 35 (2) | Appointment of registered valuers | Within 7 days of LCD | T + 7 |
2[3A | Reg. 31A (6) | First meeting of SCC | Within 7 days of LCD | T+7] |
4 | 3[Section 38 (1), Reg. 17, 18, 19, 20 and 21A] | Submission of claims; | Within 30 days of LCD | T + 30 |
Intimation of decision on relinquishment of security interest | ||||
5 | Section 38 (5) | Withdrawal/ modification of claim | Within 14 days of submission of claim | T + 44 |
6 | Reg. 30 | Verification of claims received under regulation 12(2)(b) | Within 30 days from the last date for receipt of claims | T + 60 |
7 | Reg. 31A | Constitution of SCC | Within 60 days of LCD | T + 60 |
8 | Section 40 (2) | Intimation about decision of acceptance/ rejection of claim | Within 7 days of admission or rejection of claim | T + 67 |
9 | Reg. 31 (2) | Filing the list of stakeholders 4[**] | Within 45 days from the last date of receipt of claims | T + 75 |
10 | Section 42 | Appeal by a creditor against the decision of the liquidator | Within 14 days of receipt of such decision | T + 81 |
11 | Reg. 13 | Preliminary report to the AA | Within 75 days of LCD | T + 75 |
12 | Reg. 34 | Asset memorandum | Within 5[30/75] days of LCD | T + 6[30/75] |
13 | Reg. 15 (1), (2), (3), (4) and (5), and 36 | Submission of progress reports to AA; Asset Sale report to be enclosed with every Progress Report, if sales are made | First progress report | Q1 + 15 |
Q-2 | Q2 + 15 | |||
Q-3 | Q3 + 15 | |||
Q-4 | Q4 + 15 | |||
FY: 1 Audited accounts of liquidator’s receipt & payments for the financial year | 15th April | |||
14 | Proviso to Reg. 15 (1) | Progress report in case of cessation of liquidator | Within 15 days of cessation as liquidator | Date of cessation + 15 |
15 | Reg. 37 (2, 3) | Information to secured creditors | Within 21 days of receipt of intimation from secured creditor | Date of intimation + 21 |
16 | Reg. 42 (2) | Distribution of the proceeds to the stakeholders | Within 3 months from the receipt of amount | Date of Realisation + 90 |
17 | Reg.10 (1) | Application to AA for Disclaimer of onerous property | Within 6 months from the LCD | T + 6 months |
18 | Reg.10 (3) | Notice to persons interested in the onerous property or contract | At least 7 days before making an application to AA for 7[disclaimer]. | |
19 | Reg. 44 | Liquidation of corporate debtor. | Within one year | T + 365 |
20 | Reg. 46 |
8[Deposit the amount of unclaimed |
9[Before submission of application under sub-regulation (3) of regulation 45] |
|
21 | Sch-1 Sl. No 12 | Time period to H1 bidder to provide balance sale consideration | Within 90 days of the date of invitation to provide the balance amount. |
[AA: Adjudicating Authority, LCD: Liquidation Commencement Date, SCC: Stakeholders’ Consultation Committee]]
References
1. Inserted by IBBI (Liquidation Process)(Amendment) Regulations, 2019 vide Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019, w.e.f. 25.07.2019.
2. Inserted by IBBI (Liquidation Process) (Second Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG094 dated 16th September, 2022, w.e.f. 16.09.2022.
3. Substituted by IBBI (Liquidation Process) (Third Amendment) Regulations, 2020 vide Notification No. IBBI/2020-21/GN/REG062 dated 5th August, 2020, w.e.f. 05.08.2020, for the words “Section 38 (1) and (5), Reg. 17, 18 and 21A“.
4. Omitted by IBBI (Liquidation Process) (Second Amendment) Regulations, 2021 vide Notification No. IBBI/2021-22/GN/REG079 dated 30th September, 2021, w.e.f. 30.09.2021, the words “and announcement to public“.
5. Substituted by IBBI (Liquidation Process) (Second Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG094 dated 16th September, 2022, w.e.f. 16.09.2022, for the number “75“.
6. Substituted by IBBI (Liquidation Process) (Second Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG094 dated 16th September, 2022, w.e.f. 16.09.2022, for the number “75“.
7. Substituted by IBBI (Liquidation Process) (Third Amendment) Regulations, 2020 vide Notification No. IBBI/2020-21/GN/REG062 dated 5th August, 2020, w.e.f. 05.08.2020, for the word “disclosure“.
8. Substituted by IBBI (Liquidation Process) (Amendment) Regulations, 2020 vide Notification No. IBBI/2019-20/GN/REG053 dated 6th January, 2020, w.e.f. 06-01-2020, for the “Apply to AA for order on unclaimed proceeds of liquidation or undistributed assets.”.
9. Substituted by IBBI (Liquidation Process)(Amendment) Regulations, 2020 vide Notification No. IBBI/2019-20/GN/REG053 dated 6th January, 2020, w.e.f. 06-01-2020, for the words “Before dissolution order”.
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