Q: What is the limitation period of submission of claims in IBC ?

Ans: In the Insolvency and Bankruptcy Code 2016, the concept of Claim comes into picture when the Corporate Insolvency Resolution Process will commence from the date of appointment of Interim Insolvency Professional immediately after appointment and the Interim insolvency Professional as per section 15 (1) and make a Public announcement immediately. Immediately means within 3 days. In the Public announcement, the details of CD, the Register with which the entity is registered and the last date of submission of claims and other details will be there. As per Section  15 (1) (C) and as per regulation 6(2) (C) the Creditors have to submit their claims within 14 days from the date of appointment of Interim Resolution Professional. But as per regulation 12(2),  the Creditors who fails to submit the claims with proof within 14 days can submit their claims within 90 days from the Insolvency Commencement date. The regulation 12(2) was amended. Before amendment, the Creditors who fail to submit their claims within 14 days can submit their claims before approval of resolution plan. Now ,there is a limitation of time for submission of claims. This is because, the Corporate Insolvency Resolution Process is a time bound process to resolve the insolvency, protect the Creditors, increase the availability of credit and balance interest of all stake holders.

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