Introduction

Prospect Legal is a leading law firm specializing in insolvency and liquidation matters. Our expertise spans corporate and individual insolvency cases, ensuring that clients receive expert guidance throughout the claim filing process. Our legal team helps clients navigate complex liquidation proceedings, ensuring that their claims are properly documented and presented before the liquidator.

Where You Can Find Remedies?

If a company enters liquidation, creditors and stakeholders have the right to file claims for outstanding dues. The National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) oversee liquidation proceedings in India. Legal recourse can be sought through these bodies to ensure claims are recognized and paid.

For expert assistance, consult Prospect Legal to streamline the process and secure your rightful claim.

Understanding the Claim Filing Process

The process of filing a claim with the liquidator follows a structured procedure:

Voluntary Process (Claim by Creditors)

1. Public Announcement – The liquidator issues a notice inviting claims.
2. Submission of Claims – Creditors submit claims in prescribed formats:
   • Form C (Financial Creditors)
   • Form D (Operational Creditors)
   • Form F (Other Stakeholders)
3. Verification by the Liquidator – The liquidator reviews and admits/rejects claims.
4. Distribution of Assets – Payments are made as per priority order.

Compulsory Process (Court-Mandated Liquidation)

1. NCLT Orders Liquidation – Upon failure of Corporate Insolvency Resolution Process (CIRP).
2. Appointment of Liquidator – A professional liquidator is assigned.
3. Public Announcement & Claim Filing – The liquidator invites and verifies claims.
4. Asset Liquidation & Distribution – Proceeds are distributed per IBC’s hierarchy.

Legal Protection Under the Insolvency and Bankruptcy Code (IBC)

The Insolvency and Bankruptcy Code, 2016 (IBC) provides a structured framework for filing claims with the liquidator. Below are key provisions:

Section 38: When Can a Claim Be Filed?

• Creditors, including financial and operational creditors, can file claims once the liquidation order is passed.
• Claims must be submitted within the stipulated time frame as announced by the liquidator.
• Supporting documents, such as invoices, agreements, and legal notices, must be provided.

Section 35: Powers of the Liquidator

• The liquidator has the authority to verify and admit claims.
• Can reject claims if they lack valid supporting evidence.
• Responsible for distributing assets as per the prescribed waterfall mechanism.

Process of Remedy Through Prospect Legal

At Prospect Legal, we provide end-to-end legal support for claim filing. Our structured approach includes:

Step 1: Initial Consultation & Risk Assessment

• Assess the validity and strength of the claim.
• Identify the best legal strategy to maximize recovery.

Step 2: Legal Documentation & Filing

• Prepare required claim forms with supporting evidence.
• Ensure compliance with IBC guidelines.

Step 3: Compliance & Negotiations

• Engage with the liquidator for claim verification.
• Address objections or disputes raised during the process.

Step 4: Resolution & Final Actions

• Facilitate fair asset distribution for admitted claims.
• Represent clients in case of disputes or rejections.