Claims Filing: How are Claims under IBBI Filed by Applicants?

Introduction

A claim, as defined in the Insolvency and Bankruptcy Code (IBC), is essentially the right to reimbursement for an amount owed to a financially distressed company. Whether payment is due now or later, whether the amount is agreed upon by both parties, or whether there is a dispute, payment is inconsequential. A crucial consideration is that in order to receive money, the claimant must possess a valid reason for doing so. The purpose of this blog is to inform all readers that in order to submit a claim under the IBC, the claimant must do so through the IBBI website.

What are Claims under IBBI?

A claim under IBBI is a financial demand submitted by a creditor to a company that's facing insolvency.

1. Financial Claims: 

As per the Insolvency and Bankruptcy Code (IBC), a financial claim refers to a payment entitlement that is legally enforceable, and may be either equitable, secured, or unsecured. It may also be challenged or uncontested, and can be either fixed or undisputed. Furthermore, it includes the entitlement to pursue legal action for a violation of a contract, as long as the violation leads to a claim for compensation.

2. Operational Claims: 

According to section 5 (21) of the Insolvency and Bankruptcy Code (IBC), operational debt is defined as a request for goods or services, including employment, or a debt payable to the Central Government, State Government, or regulator.

Who can File a Claim?

Under the IBBI system, various organisations with financial or practical responsibilities to the bankrupt company may make claims. As an example, consider financial creditors, practical creditors, and other interests.

Step-by-step guide on filing a claim (Online vs. Offline methods) in IBC

Online Claim Filing:

1. Access the Insolvency and Bankruptcy Board of India (IBBI) portal: The person filing for bankruptcy must go to the "Insolvency and Bankruptcy Board" component of the IBBI website .
2. Find the Relevant Case Information: He/she would want data like the Corporate Identification Number (CIN) of the debtor company or the case number provided by the NCLT (National firm Law Tribunal). This information might be offered by the company or the Resolution Professional (RP) conducting the CIRP.
3. Register on the IBBI Portal (If Not Already Registered): Claimant has to disclose fundamental facts including their name, contact information, and email address to establish an account.
4. Locate the Claim Filing Section: Once logged in, navigate to the area for making claims for a certain CIRP. This could be designated as "CIRP Information" or "Claim Filing" depending on the portal's design.
5. Fill Out the Online Claim Form: The form will normally ask for his or her name, contact information, the type of the claim (financial or operational), and the amount claimed. In addition, they must supply scanned copies of supporting documents such as invoices, loan agreements, and wage stubs.
6. Submit the Claim Form Electronically: Once they've analysed and accepted the content, submit the claim form online. The site should give a confirmation receipt or a reference number for their claim.

Offline Claim Filing:

1. Obtain the Claim Form: Claimant can obtain the claim form from the IBBI website (https://www.ibbi.gov.in/) or procure it from the Resolution Professional (RP/IRP) responsible for managing the CIRP.
2. Fill Out the Offline Claim Form: The offline form will have identical needs for information as the online form. Claimant need to fill out the essential information, claim the environment, amount claimed, and attach self-attested copies of supporting documentation.
3. Submit the Claim Form to the RP/IRP: The claim form submission address may be found on the IBBI website for each specific CIRP, or it will be provided by the RP/IRP. The claimant must make sure that all necessary documentation has been submitted before the NCLT's deadline.

Conclusion

Knowing claimants’ rights and submitting a claim swiftly under the IBC framework is vital for creditors endeavouring to collect their dues from a firm experiencing bankruptcy. By following the processes mentioned above, whether via the online portal or offline filing, claimant may guarantee their claim is recorded and examined throughout the settlement process.

 
Remember, expeditious claim submission is crucial. The National Company Law Tribunal (NCLT) specifies a deadline for submitting claims in each CIRP. Missing this date might adversely impair claimant capacity to collect any part of the outstanding sum.

 
The IBBI framework aspires for an equitable and transparent bankruptcy resolution procedure. By actively engaging via claim registration, claimant contribute to a swifter and more successful resolution, benefitting both the corporate debtor and its creditors.

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