In a recent order of the NCLT, the tribunal has initiated corporate insolvency resolution process (CIRP) against NCR realty firm, Three C Projects Limited. The tribunal has appointed an IRP to commence insolvency proceedings. He will also take over the management of the debt-ridden realty firm. The insolvency plea has been filed by five flat buyers who had booked homes in the company’s Lotus Zing project in Noida, Uttar Pradesh.
WHAT NEXT AFTER INSOLVENCY ORDER?
In this regard, for every operational and financial creditor of the developer, Three C Projects, it is important to understand the corporate insolvency resolution process (CIRP) and how exactly it works.
As the Corporate Insolvency Resolution Process has commenced, the moratorium period u/s 14 has also begun simultaneously. During this period,
- any case/suit pending before any court/authority shall be stayed,
- no new case/suit/recovery proceedings can be initiated against the developer and all execution proceedings in terms of order and decree shall be prohibited.
The Insolvency Resolution Professional who has been appointed for the Corporate Insolvency Resolution Process, shall now make a public announcement informing the public at large and the stakeholders of the realty firm about the corporate insolvency resolution process. Subsequently, the IRP will also invite claims from the operational and financial creditors of the realty firm. The remaining homebuyers of the realty firm can also file their claim for refund before the Insolvency Resolution Professional (IRP)
HOW TO SUBMIT CLAIM IN PRESCRIBED MANNER
Claim filing might seem like an easy process but the creditors have to understand that it is not and they have to submit their respective claim in a meticulous manner. The procedure that has been laid down for filing claim before the Insolvency Resolution Professional has to be followed strictly and the same has to be done in the prescribed forms as per the requisite rules of the Insolvency and Bankruptcy Board of India. They will also have to submit evidence to corroborate their claim so that the IRP has proof of the claim amount. Once the claims have been filed before the Insolvency Resolution Professional, the same shall be looked at by the IRP and in case there is any issue or discrepancy, it should be communicated to the creditor through the means of a defect list. The creditor should then rectify the defects that have been pointed out and re-file the claim. Thus, the first task at hand for all the creditors including the homebuyers of Three C Projects Limited is that of filing the claim and the same should be done with the help of someone who is well versed with the procedure of claim filing as it is a tedious task and requires expertise at every step of the way.
Disclaimer – The above article is for the purpose of guiding the creditors about the process of claim filing. We don’t intend on defaming any company or person. The readers are expected to take legal advice before relying on this article.
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