Norms for Filing of Forms in MCA-21: By Insolvency Professional, Resolution Professional or Liquidator

24 Feb, 2020

The MCA or Ministry of Corporate Affairs received several requests concerning the filing of documents where an Insolvency Professional, Interim Resolution Professional (IRP), Resolution Professional (RP) or Liquidator has been appointed under Insolvency and Bankruptcy Code (IBC), 2016 in respect of a company. To fulfill the demand for statutory compliances by such companies under the Companies Act, 2013 and to enable the compliances of such requirements by such resolution professionals this general circular No. 04/2020 [F. No. 01/02/2019] was issued on 17 February 2020.

Procedure for Filing of Forms in MCA-21

To enable compliance by Resolution Professionals, the following procedures shall be followed in respect of all cases:

The Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator will have first to file the NCLT order in form INC-28 to approve him the specified position on the MCA21 portal. The concerned person can do it by selecting the option ‘others’ at serial No. 5(a)(i) from the Drop-Down menu in the form. After filling the form the Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator will affix his Digital Signature Certificate (DSC) and shall choose his designation as “others” in the declaration box.
The ROC (Registrar of Companies) of the respective jurisdiction shall examine and approve the form INC-28 if he finds it to be in order.
In case the filled form is not in order for the Registrar of Companies (ROC) shall send the form for a resubmission or he can reject the form if not satisfied.
Only after the approval of the form from the Registrar of Companies or ROC the Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator shall be allowed to file any form on behalf of the company.
For all subsequent filings, the Interim Resolution professional shall mention his designation as “Chief Executive Officer” or CEO to file the e-forms.
After the approval of form INC-28, the Master Data for the company shall display that the said company is under CIRP or Liquidation, as the case may be.
The name of the appointed the Interim Resolution professional or Liquidator shall be displayed in the CEO column.
The Interim Resolution Professional (IRP) or Liquidator will be able to file all the necessary documents or disclosures or returns and shall be held responsible for the compliances under the Companies Act, 2013.
For the purposes of filing of e- forms SH-8, SH-9, and iXBRL, the Interim Resolution Professional (IRP) or Resolution Professional or Liquidator shall file the form in his role as CEO instead of the form being signed by two directors.
The Interim Resolution Professional (IRP) or Resolution Professional or Liquidator shall sign the form MGT-7 instead of a director and after that, the form must be certified by a company secretary (CS) in practice.
The Interim Resolution Professional (IRP) or Resolution Professional or Liquidator in his role as CEO cannot file any other form unless e- form INC 28 is approved.
The Interim Resolution Professional (IRP) or Resolution Professional or Liquidator designated as CEO shall file e-form INC-28 again upon the approval of the resolution plan, initiation of liquidation proceedings or upon the withdrawal of the application for CIRP or corporate insolvency resolution process. The companies would get suitably reflected in the company’s master data based on form INC 28.
In case the Tribunal or appellate tribunal passes an order for appointment of the new board, the registrar of the respective jurisdiction will insert the details of the first authorized signatory after receiving the application from the Interim Resolution professional or liquidator, the SRN or Service Request Number of the e-form INC 28 shall be quoted.
The new authorized signatory shall then take the responsibility from the IRP or liquidator to file e- forms on behalf of the company.
In case of admission of the company as corporate debtor in CIRP or into liquidation is stayed or set aside by the tribunal, appellate tribunal or other courts, such order shall be filed in form INC-28 by the concerned IP. The status of the company and the authorization with regard to the filing of forms on behalf of the company will change accordingly.
The competent authority approved the above issues.

READ Scope of Reporting of Auditors in Audit Report as per MCA

Also, Read: Role of NCLT in Promoting Interest of Banks and Financial Institution.

Takeaway

MCA21 is an e-Governance initiative by the Ministry of Company Affairs (MCA) which enables easy and secure access of the MCA services to the corporate entities, professionals and the citizens of India. MCA launched MCA21 to improve the mechanism of the regulatory environment in India. The Insolvency Professional or Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator can easily file the documents in the specified procedures for the filing of liquidation proceedings.