Verification of claims of creditors

verification of claims

Consolidation Of Claims Under Section 38 And Verification Of Claims Under Section 39 Under Insolvency And Bankruptcy Code  2016

SECTION 38. Consolidation of claims

(1) The liquidator shall receive or collect the claims of creditors within a period of thirty days from the date of the commencement of the liquidation process.

(2) A financial creditor may submit a claim to the liquidator by providing a record of such claim with an information utility:

Provided that where the information relating to the claim is not recorded in the information utility, the financial creditor may submit the claim in the same manner provided for the submission of claims for the operational creditor under sub-section (3).

(3) An operational creditor may submit a claim to the liquidator in such form and in such manner and along with such supporting documents required to prove the claim as may be specified by the Board.

(4) A creditor who is partly a financial creditor and partly an operational creditor shall submit claims to the liquidator to the extent of his financial debt in the manner as provided in sub-section (2) and to the extent of his operational debt under sub-section (3).

(5) A creditor may withdraw or vary his claim under this section within fourteen days of its submission.

SECTION 39. Verification of claims.-

(1) The liquidator shall verify the claims submitted under section 38 within such time as specified by the Board.

 (2) The liquidator may require any creditor or the corporate debtor or any other person to produce any other document or evidence which he thinks necessary for the purpose of verifying the whole or any part of the claim.

Following points must be kept in our mind while admitting the Claim Amounts of Operational Creditors:

1.Claim must be filed with supporting documents
2.Proof of delivery
3.Checking of opening balances.
4.Verification of invoices (ie., Invoice Amount claimed pertains to the Different group or other group entity but not to Corporate Debtor.)
5.Post invoices
6.Claiming for Invoices amount which are under disputes
7.Debit notes issued by Corporate Debtor
8.Any payments made to Operational Creditor by the Corporate Debtor
9.TDS deduction
10.Admission of interest ( ie., “Explicit agreements or PO terms” must be supported to the interest claimed)
11.Exchange rate fluctuations
12.Contract termination charges
13.Adjustment of Creditor balance & with Debit balances in Corporate Debtor Books
14. Final Admissible claim amount must be extent of available information and details.