The Insolvency and Bankruptcy Board of India (IBBI) on June 28, 2024, issued a circular regarding the filing of Forms to monitor Voluntary liquidation processes under the Insolvency and Bankruptcy Code, 2016.
To alleviate the compliance burden for Insolvency Professionals (IPs), a set of forms on an electronic platform has been created by the IBBI to capture the details of the voluntary liquidation process. These forms are vital for the voluntary liquidation procedure under the Insolvency and Bankruptcy Code (IBC), as they enable systematic and transparent recordkeeping and seamless reporting.
The primary advantages of these forms include:
• Boosting the efficiency and effectiveness of the voluntary liquidation process.
• Allowing liquidators to conveniently access and submit forms online, reducing delays and enhancing efficiency.
• Decreasing the chances of errors and omissions, ensuring more accurate and reliable information.
It is directed that an IP shall file the forms on the electronic platform only:
• within the prescribed timeline for all cases where a voluntary liquidation process has commenced on or after the date of issuance of this circular.
• for the ongoing cases: in which no application for dissolution of the corporate person has been filed, the IP shall file the following forms by September 30, 2024:
o Form VL 1 for all cases
o Form VL 2 for cases where the process is delayed or the liquidator is replaced, as the case may be.
[Circular No. IBBI/LIQ/74/2024]
