Q. Application under IBC by Operational Creditor

Question

Operational Creditor want to file petition in NCLT for his dues of INR 2.10 Lakh. Some challenges he is facing are as under:

01) do he need to appoint IP and bear expense from his own pocket?
02) if he prefer to file petition and ask NCLT to appoint IP by bench, then who will bear the expenses?

Main Questions: at which point of time, IP involvement arises?

Process what I understood is as under:
01) Form 3 to corporate debtor - already served, 15 days lapses.
02) Form 5 - Authorize a CS to handle compliance and ready to file petition with DD of INR 2k and petition...
Can we share advance petition with client?

03) matter will be considered by bench and in case company settled the same, IP involvement will not arise.? - please confirm

04) in case company says, I am not solvent to settle the dues - then IP involvement will arise? - please confirm.

Regards,
CA Rahul Gupta

Answer 1

Got my answer with clarification:

01) we can send a advance notice to Corporate Debtor.

02) Yes, Corporate Debtor can settle the case before admission of case.

03) Involvement of IRP will arise when Petition for IBC admitted by NCLT where IRP will take up the company under CIR Process when moratorium period of 180 days announced by tribunal.

04) Expenses will have to be bear by Operational Creditor. Either appoint by self or appoint by NCLT. In most of the cases when IRP appoint by Tribunal, it is ordered to submit INR 2 Lakh to IRP as Initial professional Fees.

05) Some relaxation may arise when CoC approve reimbursement of IRP turned RP Fees from company.

Regards,
CA Rahul Gupta
E: rahul@mrt-ca.in