Shivani Thakur
Published on: May 29, 2022, at 17:50 IST
The Central Board of Indirect Taxes and Customs (CBIC) released a notification laying out a Standard Operating Procedure (SOP) to be followed by the National Company Law Tribunal (NCLT) for cases under the Insolvency and Bankruptcy Code, 2016 (the Code).
By way of the comprehensive SOP, CBIC intends to resolve the issue of delayed submission of its claims against corporate debtors undergoing the Corporate Insolvency Resolution Process (CIRP).
As per the notification, “This leads to their claims not being admitted and extinguished once a resolution plan is approved. It is also observed that the authorities then litigate on the rejection of each claims, despite the settled position that no claims can be raised once the plan is approved and no demands can be raised on the resolution applicant who has taken over the company through such a resolution plan,” the CBIC instruction stated.
The reason for the delay was that the concerned zonal offices of these authorities do not receive information regarding initiation of the process in a timely manner.
CBIC has nominated the Additional Director General of the Directorate General of Performance Management (DGPM) as the Nodal Officer for the receipt of information regarding initiation of the insolvency resolution process and dissemination of the same.
The SOP in detail outlines the duties and responsibilities of the Nodal Officers and Zonal Officers for timely dissemination of information and submission of claims.