/ IBC

IBC : Issue of sharing confidential information during CIRP

Initiation of Liquidation under the IBC

What are the basic Issue of sharing confidential information during Corporate Insolvency Resolution Process under the IBC law? 

An Resolution professional shall ensure that information confidentiality relating to liquidation, CIRP or bankruptcy process, as case may be, Resolution professional should maintained at all times during liquidation, CIRP or bankruptcy process.

Resolution professional shall share IM after receiving an undertaking from a Committee of Creditors or member of the committee to effect that such resolution applicant & member shall maintain confidentiality of information & shall not use such information to cause an undue loss or undue gain to itself or any other person & comply with the requirements u/s 29(2). (Regulation 36(4))

Related Circular of IBC : Link 

Resolution Professionals face the issue as whom he/she as resolution professional can share the details & information Resolution Plan Copy, Such information memorandum & other confidential information during the Corporate Insolvency Resolution Process? & same issue is faces by the legal counsels of resolution professional.

with reference to the sharing confidential information during Corporate Insolvency Resolution Process under the IBC law, there is no specific clear provisions in the Insolvency and Bankruptcy Code, however, various judgments are available on this issue.

Insolvency and Bankruptcy Code provides various options to search judgments on a specific issue & on same theme, you can search judgments on “Sharing of Information” on the below parameters:

·     Sharing of details & Information to the Non- Committee of Creditors Member/Other Member

·     Sharing of details & Information to the Workmen or Employees

·     Sharing of details & Information to the Resolution Applicant

·     Sharing of details & Information to the Committee of Creditors /Creditors

·     Sharing of details & Information to the Suspended Board of Corporate Debtors

·     Sharing of details & Information to the Operational Creditor

·     Sharing of details & Information to the Dissenting Financial Creditors

·     Sharing of Information with Shareholders of Corporate Debtors

·     Valuation Report copy Supply.

·     And other parameters….

Following the Format for maintain confidentiality undertaking under section 29 & regulation 36(4) under IBC : Link 

India financial Consultancy Corporation Pvt Ltd Services 

  • We at Indian financial Consultancy Corporation Pvt Ltd, a Legal & compliance Company, provide various support services to the Insolvency Professional who act as an IRP and RP during the CIRP Process & as the Liquidator during the Liquidation Process of the Corporate Debtor.
  • During the CIRP, we support the IRP/RP to carry out his/her duties in accordance with the IBC 2016 and regulation made thereunder by preparing the EOI Documents, CoC Constitution Report,  Information Memorandum and RFRP and in convening and holding of CoC Meetings and others.
  • In the Liquidation Process, we regularly support the Liquidator in drafting and preparation of Preliminary Report, Asset Memorandum, Progress Report and E-Auction Process Document and in making compliance with the provisions of IBC 2016 and regulations made thereunder.
  • We also extend our support during personal insolvency process by drafting & filing section 99 reports, making public announcement post section 100 order and communication with stakeholders, preparation of creditors list and filing of same with the AA and other related compliances.

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