Frequently Asked Questions (FAQs) for Filing of Creditors Claims
This document is designed to answer the questions of creditors who may have queries on PVS MEMORIAL HOSPITAL PRIVATE LIMITED’s (CIN U85110KL1992PTC006573) public announcement relating to commencement of Corporate Insolvency Resolution Process (“CIRP”) in accordance with the Insolvency and Bankruptcy Code, 2016 (“IBC”). As the PVS Memorial Hospital Private Limited does not have an active website, the FAQ and claim details shall be published in the website of the Interim Resolution Professional, Mr. Bijoy P Pulipra
Responses to certain frequently asked questions (FAQs) are set our below. Please note that these responses have been provided only as practical guidance and for information purposes only. The views expressed herein do not in any way constitute legal advice and shall not be legally binding. Your rights in the CIRP depend substantially on the filing of proper proof of claims and it is strongly recommend that you obtain independent legal advice before submitting any proof of claims.
A. Is there any stay on the CIRP proceedings?
No. Presently there is no stay for the process from any judicial forums. The NCLT and NCLAT had passed various orders during the process and the copies of the same are available on the page "Order/Directions". Click here to access all Orders/Directions
B. General Queries and Answers
What is the Corporate Insolvency Resolution Process and Corporate Insolvency Resolution Process Period?
Corporate Insolvency Resolution Process (“CIRP”) is a process during which an resolution professional is appointed as Interim Resolution Professional (“IRP”) / Resolution Professional (“RP”) to manage the affairs of the Company as a going concern and invites prospective lenders, investors and any other persons to put forward their resolution plans in order to explore the possibility of having a resolution by way of restructuring or other possible modes to revive the Company. CIRP period continues for a period of 180 days commencing from the date of admission of application for initiating CIRP by the National Company Law Tribunal (“NCLT”) which may be further extended for a further period of 90 days (180 + 90 = 270 days) in accordance with the provisions of the Code
2. What is the status of management of Company after the appointment of IRP?
From the date of appointment of IRP, the management of affairs of the Company shall vest with IRP, the power of the board of directors shall stand suspended and be exercised by IRP. All personnel of the Company, its promoters and persons associated with the management of the Company shall extend all assistance and cooperation to the IRP, as may be required by him; and officers and managers of the Company shall report to the IRP. The IRP will endeavour to manage the operations of the Company as a going concern.
3. What are the major duties of IRP / RP during the CIRP?
The major functions of IRP/RP inter alia include the following:
Protection and preservation of the value of property of the corporate debtor and maintenance of its operations as a going concern.
to collect all information relating to the assets, finances and operations of the Company for determining the financial position of the Company and take control and custody of assets of the Company as per the Code.
receive, collate & verify claims submitted by creditors, pursuant to public announcements published on 17th October 2019 (for “PVS”)
constitute Committee of Creditors (“CoC”) for the Corporate Debtor & prepare list of creditors
prepare an information memorandum
invite prospective lenders, investors, and any other persons, through publication of Expressions of Interest / Notice of Invitation or otherwise, to submit resolution plans (if any).
3. When will the CIRP commence?
The CIRP shall commence from the date of admission of application filed by financial creditor/operational creditor/corporate applicant, by the Adjudicating Authority (being NCLT). In case of PVS, the date of commencement of CIRP is 16th October, 2019
4. What is the significance of the CIRP commencement date?
The commencement date of the CIRP is significant because all proof of claims submitted by the creditors of the corporate debtor are required to be for the period prior to the insolvency commencement date. Further, on and from the insolvency commencement date, the NCLT declares a moratorium on the corporate debtor which lasts till the time the resolution plan is approved by the NCLT or an order for liquidation is passed against the corporate debtor.
5. What was the public announcement of PVS MEMORIAL HOSPITAL PRIVATE LIMITED?
A public announcement has been duly made for the attention of creditors of PVS MEMORIAL HOSPITAL PRIVATE LIMITED (“PVS”) in accordance with the provisions of the IBC and the regulations made thereunder, notifying the creditors that the National Company Law Tribunal (“NCLT”), Kochi Bench, has ordered the commencement of CIRP against PVS on October 16, 2019 and that the creditors may submit their respective proofs of claim against PVS to the interim resolution professional (“IRP”).
Click Here for NCLT order dated October, 16,2019
Click Here public announcement dated October, 17, 2019
6. How do I file a claim as a creditor?
The creditors of PVS are requested to submit a proof of their claims on or before October, 30, 2019 in the prescribed form, to the Interim Resolution Professional (“IRP”) at the address given below through (i) electronic means only (if you are a financial creditor), and (ii) in person, by post or by electronic means (if you are a operational creditor or have a claim otherwise than as a financial Creditor)
NAME: Mr. BIJOY P PULIPRA
ADDRESS: Ground Floor TC - 11/789(1), Vayal Road, Nanthancode, Kowdiar.P.O, Kerala 695003.
EMAIL ADDRESS . email@example.com
REGISTRATION NO.: IBBI/IPA-002/IP-N00607/2018-2019/11864
The proof of claims is to be submitted by way of specified forms and relevant documentary proof in support of the claim, as prescribed under Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
7. Where will I get the claim forms and how can I file an online claim?
The forms can be downloaded from the website http://ibbi.gov.in/downloads (Insolvency and Bankruptcy Board of India). Alternatively, you can also submit your claims online by clicking on the links set out below. After completing the information in the claim form, you will be able to print it. You are required to submit a scanned copy of the signed and printed form and documentary proof in support of your claim to the IRP in person, by post or by electronic means (if you are an operational creditor) and by electronic means only (if you are a financial creditor) at the address mentioned above. Submission of online claims will assist with efficient coordination and correspondence.
Please find below the link for online submission of claim form:
Form B - Click here for accessing online claim form for operational creditors (except workmen or employees).
Form C- Click here for accessing online claim form for financial creditors.
Form D- Click here for accessing online claim form for workmen or employees.
Form E- Click here for accessing online claim form for authorised representative of workmen and employees
Form F- Click here for accessing online claim form for creditors other than financial creditors and operational creditors.
8. Which documents and support should I attach along with claim form while submitting to the IRP?
Please find below an indicative list of supporting documentary evidence. This will reduce ambiguity and enable prompt admission of claims.
Authorized contract / purchase order for the supply of goods and/or services
Proof of delivery/ work completion certificate
Ledger statement of PVS Memorial Hospital Private Limited in your books indicating outstanding receivables
Order of a court or tribunal that has adjudicated upon the non-payment of a debt
Financial contract supported by financial statements as evidence of the debt
Records evidencing that the amounts committed by the financial creditor to the corporate debtor under a facility has been drawn by the corporate debtor
Financial statements showing that the debt has not been repaid
Order of a court or tribunal that has adjudicated upon the non-payment of a debt
Copy of letter evidencing the date of appointment and terms and conditions of employment
Copy of relieving letter/ termination.
Copy of bank statement evidencing the dues.
Any other document to substantiate the claim amount
9. Do I still need to send the hard copy of documents if I have already submitted the claim form along with relevant supporting documents through an email?
If you are a financial creditor, the claim form and supporting documents can be submitted only in electronic form(Email). If you are a creditor other than financial creditor, you can either send it by post or submit electronically. If you opt to submit the claim form and supporting documents by email then it it is not required to send the hard copy of the document by post. However as an abundant caution, you may at your discretion send the claim form along with the supporting documents to the IRP’s address mentioned in FAQ No# 6 above.
10. I have already sent the detailed listing of invoices outstanding to IRP. Would I still need to fill and submit my claim?
Yes. Your claims will not be acknowledged until the receipt of a completed appropriate form along with signed affidavit and relevant supporting documents, as prescribed under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
11. We have already performed the work for PVS Memorial Hospital Private Limited without a work order or an agreement. Kindly explain the process for submitting such claims.
In the absence of documentary evidence proving your claim, you are not barred from submitting a proof of claim. However, in such cases we strongly advice that you seek independent legal advice before submitting the claim thereof (if any).
12. I am authorized by workmen and/employees of the Corporate Debtor(s) to file a proof of claim on their behalf. How should I file the claim?
If you are an authorised representative of workmen and/employees of the Corporate Debtor(s), you shall file proof of claim for and on behalf of the workmen and employees in Form E along with the duly notarised affidavit/ declaration and other documentary evidence in support of proof of claim, provided under the Schedule of CIRP Regulations and submit it to the IRP of the Corporate Debtor, in person, by post or by electronic means.
13. Having filed the claim, when can I expect the payment to be credited or made?
It is made explicitly clear that mere submission of the claim does not by itself guarantee the payment. The payments will be made as per the resolution plan approved by the Committee of Creditors of the Corporate Debtor(s), and further by NCLT, including any modifications thereof, and all payments shall be dealt with in accordance with the provisions of the Code.
14. Will I be a required to submit any further documents or clarifications after submitting the proof of claim?
Yes, the IRP, as the case may be, may call for such evidence or clarifications from the creditors, as he deems fit in order to substantiate /verify the whole or part the claim.
15. What date should be considered to determine the claim amount?
All claims should be as of October, 16, 2019
16. I am a shareholder of PVS Memorial Hospital Private Limited. Should I file the claim form? Which one?
The claims are for creditors only. However, you may want to consult your own advisors and/or legal counsel, in order to determine if you could make a claim.
17. I am a supplier to PVS Memorial Private Limited and have outstanding due against the company. Considering that company is going through insolvency resolution process, should I stop supplying the goods / services to the company?
As you may be aware, PVS Memorial Hospital Private Limited has faced several external challenges which had an adverse impact on its profitability and ability to repay debt. The Kochi bench of NCLT ordered the initiation of CIRP on October, 16, 2019 based on the insolvency petition application filed by Operational Creditors. The objective of the CIRP is to facilitate a sustainable resolution plan for the company. Till such time as a resolution plan is approved by the NCLT, the IRP (and the resolution professional) is duty bound to run the operations of PVS as a going concern in furtherance of which PVS is entitled to continue contracting with you. Further, any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern will be categorized as ‘insolvency resolution process costs’ under the IBC and will be accorded higher priority in payment in any resolution plan and on liquidation.
We wish to place on record the unstinted support which we have and are receiving from our valued suppliers like you and look forward to the same during the CIRP and beyond.
18. Will we receive an acknowledgement for the submitted claims? What is the status of the claim submitted by us?
The website of PVS is not active and hence the IRP is unable to update the status of the claims in the website. However, for providing update to the claimants , the updates on the status of claims received is hosted on the webpage of the Resolution Professional. You may access the link to confirm the status of your claim. Click here to see the status of Claims
19. I have already submitted the claim in hardcopy, do I still need to submit the claim form online?
No, if you have already submitted the claims through hard copy, you are not required to submit the online claim form. However, if you are a financial creditor, your form and the supporting documents should have been received by electronic means.
20. I have submitted the claim form online; do I still need to send you the claim through hardcopy or email?
Yes. After completing the information in the claim form available online, you should print it. You are required to submit a scanned copy of the signed and printed form and documentary proof in support of your claim to the IRP in person, by post or by electronic means (if you are an operational creditor) and by electronic means only (if you are a financial creditor) at the address mentioned above. The address to which the documents to be forwarded is given in FAQ #6
21. What will happen if a creditor fails to submit proof of claim within the time stipulated in the public announcement? As per Regulation 12 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) a creditor who fails to submit proof of claim within stipulated time in the public announcement, may submit such proof of claim to the IRP / RP before the resolution plan is approved by the Committee of Creditors.
22. What if I submit a wrong claim or inflate the claim amount, or write wrong particulars?
The submission of a claim is supported by your declaration and verification that the particulars are true and correct. Please evaluate the serious implications of doing so. Your claim forms the basis of the RP computing the liquidation value of the assets and liabilities of the Corporate Debtor, preparation of resolution plan etc. Therefore, you must ensure that the particulars submitted by you are true and correct.
23. What if my debt is in foreign currency?
The claims of creditors which are denomination in foreign currency shall be valued in Indian currency at the official exchange rate which is the reference rate published by the Reserve Bank of India or derived from such reference rate, as on the date of the commencement of the CIRP of the respective Corporate Debtors.
24.What is the purpose of enactment of the Code?
As per preamble to the Code, the purpose of this Code is as follows:-
To consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
To maximize the value of assets of interested persons.
To promote entrepreneurship To promote availability of credit.
To balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues.
To establish an Insolvency and Bankruptcy Board of India as a regulatory body for insolvency and bankruptcy law.
25 What shall be treated as debt under the Code?
As per Section 3(11) of the Code, debt means a liability or obligation in respect of a claim which is due from any person and includes a financial debt and operational debt
26. What is included in the financial debt?
As per Section 5(8) of the Code, financial debt means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes:-
a) Any money borrowed against the payment of interest.
b) Any amount raised by acceptance under any acceptance credit facility or its de-materialised equivalent.
c) Any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument.
d) The amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other accounting standards.
e) Any receivables sold or discounted other than any receivables sold on non-recourse basis.
f) Any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing.
g) Any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account.
h) Any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution.
i) The amount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in above clauses.
27. What is included in operational debt?
As per Section 5(21) of the Code, operational debt means a claim in respect of
a) Provision of goods; or
b) Provision of services including employment; or
c) a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority.
28. I came to know about the process after the due date for submission of the claim. Can i submit the claim now?
Yes. As per Regulation 12(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, a Creditor shall submit the Claim of proof on or before last date mentioned in the public announcement. (ie On or before 30th October, 2019). However Regulation 12(2) of the said regulation provides that a creditor, who fails to submit claim with proof within the time stipulated in the public announcement, may submit the claim with proof to the interim resolution professional or the resolution professional, as the case may be, on or before the ninetieth day of the insolvency commencement date.
In view of the above a claimant shall have to submit their claim in Form D under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 along with adequate proof on or before 30th October, 2019. If in case they were unable to submit the claim within the said period, they will be able to submit claim with proof on or before ninetieth day of the insolvency commencement date (ie 21st January, 2020).
29 How the creditors shall be settled if a Resolution plan is approved by Adjudicating Authority?
The Claims of the Creditors shall be distributed in the following order of priority :-
(a) the insolvency resolution process costs paid in full;
(b) the following debts which shall rank equally between and among the following :—
(i) workmen’s dues for the period of twenty-four months preceding the liquidation commencement date; and
(ii) debts owed to a secured creditor in the event such secured creditor has relinquished security in the manner set out in section 52;
(c) wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date;
(d) financial debts owed to unsecured creditors;
(e) the following dues shall rank equally between and among the following:—
(i) any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date;
(ii) debts owed to a secured creditor for any amount unpaid following the enforcement of security interest;
(f) any remaining debts and dues;
(g) preference shareholders, if any; and
(h) equity shareholders or partners, as the case may be.
(i) it is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, each of the debts will either be paid in full, or will be paid in equal proportion within the same class of recipients, if the proceeds are insufficient to meet the debts in full; and
(ii) the term “workmen’s dues” shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013.
What to know more about the CIRP in general?
Please visit https://icsiiip.com/FAQs to know more about CIRP process in general. It is not directly related with PVS CIRP and meant to give you an idea about the whole process.