Once an application for Insolvency bankruptcy has been submitted under section 9, IBC states that immediately after submitting application for Interim resolution Professional has to be appointed and a public announcement has to be made regarding the same.
When is the public announcement made?
Right after the initiation of application for insolvency bankruptcy has been submitted then appointment of interim resolution professional announcement has to be made in public and if not done so then the Interim resolution professional himself has to make an announcement.
What constitutes in Public Announcement?
Public announcement includes following things:-
- It should contain corporate debtor credentials in which name and address of the corporate debtor.
- Credentials Of the authority ( whoever is the authority) in which the corporate debtor is registered or incorporated is to be provided.
- The last date of submissions of the claims has to be there.
- Details of interim resolution professional who is going to responsible for conducting the insolvency resolution procedure has to be there.
- If there are any false and misleading claims, then information about this claim nad penalties given to them has to be published accordingly.
- The closing date of insolvency resolution process to be mentioned.
How to make an announcement?
- Form A of the schedule has to be filled to make a public announcement.
- The announcement is to be publicise:-
- In English language and in regional language in news paper. And this newspaper should have a wide circulation at the corporate office and the principle office of the corporate debtor. And the circulation should be everywhere where corporate debtor conducted his business.
- If there is a website of corporate debtor, then there also announcement has to be made.
- If there is a website specified for the purpose of public announcement, then there also public announcement has to be made.
- The announcement shall provide the last date of submission of the proofs of claims by the operational financial creditors. The date is to be 14 days from the appointment of Interim Resolution Professional.
The expenses depends on the applicant to bear them or else the same can be reimbursed by the creditor of companies to a particular cost.