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Proof of Claim by Financial Creditors

Proof of Claim by Financial Creditors

Proof of claim by financial creditors is a specialized form that the financial creditors have to submit to lay claim on the debt that the corporate debtor owes them, after the assets of corporate debtor are liquidated according to the decision made by the Committee of Creditors. Through this blog, we are going to discuss the intricacies of this form and you would also know about the documents that you would have to submit alongside these forms in order to successfully lay claim to the debts.

Format of the FORM

This form is referred to as Form C, and the following is the structure and explanation regarding this form:

Note: The explanation is given within the characters “/*” and”*/”. Every included with these characters are only for explanation purposes and won’t appear in the actual forms.

FORM C

PROOF OF CLAIM BY FINANCIAL CREDITORS

(Under Regulation 17 of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017)

/*Date of filing the form*/ [Date]

To

The Liquidator

[Name of the Liquidator]

[Address as set out in the public announcement] /*There is an entire process associated with public announcement */

From

[Name and address of the registered office and principal of the financial creditor]

/*the above is the financial creditor who seeks to lay claims*/

Subject: Submission of proof of claim in respect of the voluntary liquidation of [name of the corporate person] under the insolvency and bankruptcy code, 2016.

Madam/Sir,

[Name of the financial creditor] hereby submits this proof of claim in respect of the voluntary liquidation [name of the corporate person]. The details of the same are set out below:

1.

NAME OF FINANCIAL CREDITOR

 

(IF AN INCORPORATED BODY PROVIDE IDENTIFICATION NUMBER AND PROOF OF INCORPORATION, IF A PARTNERSHIP OR INDIVIDUAL PROVIDE IDENTIFICATION RECORDS* OF ALL THE PARTNERS OR THE INDIVIDUAL)

 

/* a copy of Certificate of incorporation needs to be attached if the financial creditor is a company. A partnership deed needs to be attached if the entity is a partnership firm. Furthermore, the identification proofs of all the members of company/partnership should be provided as well*/

 

2.

ADDRESS AND EMAIL OF FINANCIAL CREDITOR FOR CORRESPONDENCE.

 

/*Contact details of the applicant(financial creditor)*/

 

3.

TOTAL AMOUNT OF CLAIM, INCLUDING ANY INTEREST, AS AT THE LIQUIDATION COMMENCEMENT DATE AND DETAILS OF NATURE OF CLAIM (WHETHER TERM LOAN, SECURED, UNSECURED)

 

/*Complete amount that is being claimed along with the nature of the claim should be specified as well*/

 

4.

DETAILS OF ANY ORDER OF A COURT OF TRIBUNAL THAT HAS ADJUDICATED ON THE NON-PAYMENT OF DEBT

 

/*If there is some legal arbitrations associated with the non-repayment of debt up until this point, the details of the same should be provided as well*/

 

5.

DETAILS OF HOW AND WHEN DEBT INCURRED

/*Complete details of the circumstances of debt occurrence and the exact date of default*/

 

6.

DETAILS OF ANY MUTUAL CREDIT, MUTUAL DEBTS, OR OTHER MUTUAL DEALINGS BETWEEN THE CORPORATE PERSON AND THE FINANCIAL CREDITOR WHICH MAY BE SET-OFF AGAINST THE CLAIM

/* If there is any case of mutual credit (the credit that has been mutually reciprocated between debtor and the creditor), then the details associated with the same have to be shown as well in the form of bills and other associated materials. */

 

7.

DETAILS OF ANY SECURITY HELD, THE VALUE OF THE SECURITY, AND THE DATE IT WAS GIVEN.

 

/*If the debtor has provided the financial creditor with any sort of security amount, then details of that amount, and the date should be provided as well*/

 

8.

DETAILS OF ANY ASSIGNMENT OR TRANSFER OF DEBT IN HIS FAVOUR

 

9.

DETAILS OF THE BANK ACCOUNT TO WHICH THE FINANCIAL CREDITOR’S SHARE OF THE PROCEEDS OF LIQUIDATION CAN BE TRANSFERRED

 

/*Details of the bank account to which the amount has to be transferred after the debtor is liquidated */

 

10.

LIST OUT AND ATTACH THE DOCUMENTS BY REFERENCE TO WHICH THE DEBT CAN BE SUBSTANTIATED AND IN SUPPORT OF THE CLAIM.

 

/*These documents should contain invoices, demand notices, bank account statements and other details that can be provided as an evidence associated with */

 

Signature of financial creditor or person authorised to act on behalf  (please enclose the authority if this is being submitted on behalf a financial creditor)

 

Name in BLOCK LETTERS

 

Position with or in relation to the creditor

 

Address of the person who is signing

 

*PAN, Passport, AADHAR Card or the identity card issued by the Election Commission of India/*the applicant has to submit any one of these mentioned identification proofs */

AFFIDAVIT

  1. [Name of the deponent], currently residing at [address of the deponent], do solemnly affirm and state as follows.
  1. The above named corporate person was, at the voluntary liquidation commencement date, that is, the ____________day of__________20____ and still is, justly and truly indebted to me [or to me and [insert name of co-partners]], or, as the case may be] for sum of Rs.­­­­­­­_________ for...........[please state consideration].
  2. In respect to my claim of the sum or any part of thereof, I have relied on the documents specified below:

[please list the documents relied on as evidence of debt and of non-payment.].

  1. The said documents are true, valid and genuine to the best of my knowledge, information and belief.
  2. In respect of the said sum or part thereof, I have not, nor have my partners or any of them, nor has any person, by my/our knowledge, or belief, for my/our use, had any manner of satisfaction or security whatsoever, save and except the following:

[Please state details of any mutual credit, mutual debts, or other mutual dealings between the corporate person and financial creditor which may be set-off against the claim]

Solemnly, affirmed at­­­­­­­­­­­­­­­­­­­­­­­­­_______________ on______________ day, the _____________ day of__________ 20_________

Before me,

Notary/Oath Commissioner

Deponent’s Signature.

VERIFICATION

 I, the Deponent hereinabove, do hereby verify and affirm that the contents of para ___ to __of this affidavit are true and correct to my knowledge and belief. Nothing is false and nothing material has been concealed there from.

Verified at ________ on this ________ day of ________ 201___. 

Deponent’s Signature.

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