Mahender Kumar Khandelwal

Mahender Kumar Khandelwal I am a registered insolvency professional and a Chartered Accountant. I have successfully completed CIRP assignment of Bhushan Power and Steel Ltd.

I bring over 30 years of experience that spans various areas. I am Mahender Kumar Khandelwal is a professional registered insolvency and Chartered Accountant professional. Senior management and financial professional with wide experience spanning over 30 years in the entire continuum of structuring, financing through debt and equity instruments. Management and turnaround of Special situations and

Insolvency across a wide spectrum of industries. Led Restructuring and Resolution of large corporates (100+) across various sectors viz. Iron and Steel, Stainless Steel and utensils, System Packaging, Forging Industry, Pharma, Hotels, NBFC, Rice and Food Processing, Fertilizers, Biodiesel, Edible Oils, Biomass, Solar Panels, Power and Infrastructure, Textile, Education, Auto Component, Polymers, Electric Appliances, Plywood, Construction and Real Estate.

07/10/2021

NOTE ON CLAIM VERIFICATION PROCESS BY IRP UNDER IBC

1. That Section 3(19) of IBC 2016 defines “Insolvency Professional” and Section 5(27) defines “resolution professional” to include and Resolution Professional (RP) and Interim Resolution Professional(IRP) as the case may be, "5(27) “resolution professional”, for the purposes of this Part, means an insolvency professional appointed to conduct the corporate insolvency resolution process 1 [or the prepackaged insolvency resolution process, as the case may be,] and includes an Interim Resolution Professional."

2. Interim Resolution Professional is responsible to receive, collating and verifying claims. Section 18 (1) (b) of the Code provides:

“The interim resolution professional shall perform the following duties, namely: -

(b) receive and collate all the claims submitted by creditors to him, pursuant to the public announcement made under sections 13 and 15;”

Regulation 13 (1) of the CIRP Regulations provides:

“13. Verification of claims.

(1) The interim resolution professional or the resolution professional, as the case may

be, shall verify every claim, as on the insolvency commencement date, within seven

days from the last date of the receipt of the claims, and thereupon maintain a list of

creditors containing names of creditors along with the amount claimed by them, the

amount of their claims admitted and the security interest, if any, in respect of such

claims, and update it.”

(IBBI Circular dated 3rd January 2018 directs that the IP shall not outsource any of his duties.)

Note: S. 38 and s. 39 of the code lays down consolidation and verification of claims as done by the Liquidator.

3. The Hon’ble Apex Court in the matter of Committee of Creditors of Essar Steel India Limited Through Authorised Signatory Vs. Satish Kumar Gupta & Ors. remarked on the Regulation 13 and stated as under:

“...Thereafter, under Regulation 13, the resolution professional shall verify each claim as on the insolvency commencement date, and thereupon maintain a list of creditor containing the names of creditors along with the amounts claimed by them, the amounts admitted by him, and the security interest, if any, in respect of such claims, and constantly update the aforesaid list – see Regulation 13(1)....”

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Post-Dated ChequesIssued for Supply of Raw Material Services Pre-CIRP Period and Payment is Due During CIRPIt is a well ...
26/08/2021

Post-Dated ChequesIssued for Supply of Raw Material Services Pre-CIRP Period and Payment is Due During CIRP

It is a well settled position that once moratorium is imposed, no person can recover any amount from the account of the Corporate Debtor. In the case of post-dated cheques(“PDC”), even though the cheque dates back to the date of handover, it cannot be encashed to recover the amount from the Corporate Debtor after moratorium beginsin view of the specific provisions laid down under Section 14 of the Code. However, the NCLAT in the case of SREI Equipment Finance Ltd. v. Amit Gupta [Company Appeal (AT) (Insolvency) No. 298 of 2019]held that the creditor is at liberty to move before a court of appropriate jurisdiction for appropriate relief, after refunding the amount of the encashed PDCs.

In light of the above, it is imperative to take note of the Supreme Court’s landmark decision in the case of P. Mohanraj&Ors. v. M/s Shah Brothers IspatPvt. Ltd. [Civil Appeal No.10355 OF 2018]wherein the Apex Court unequivocally and comprehensively ruled that continuation/institution of “proceedings“ under Section 138 and Section 141 of the Negotiable Instruments Act(“NI Act”)shall be covered under the relief of the moratorium offered by Section 14(1) (a) of the Code. In other words, during the pendency of a CIRP process under the insolvency regime, such proceedings can neither be instituted nor continued against the Corporate Debtor who may have allegedly committed the offense of dishonour of cheque.In furtherance to this, the Court also held that the relief under Section 14(1) (a) of the Code will not apply to the “natural persons “in-charge of the affairs of the Corporate Debtor such as the Director or the Manager but will only apply to the corporate entity or the artificial juristic person the natural persons manage. The Court allowed the relief to the corporate entity but ruled that the proceedings under Sections 138 and 141 of the NI Act continue against the directors.

Follow me on my page click here:- https://www.facebook.com/mahenderkhandelwalca/

Advance Given for Supply of Goods Pre-CIRP and Goods to be Supplied During CIRP PeriodThe Hon’ble NCLAT in the matter of...
24/08/2021

Advance Given for Supply of Goods Pre-CIRP and Goods to be Supplied During CIRP Period

The Hon’ble NCLAT in the matter of Tuf Metallurgical Private Limited v. Impex Metal & Ferro Alloys Limited & Others [Company Appeal (AT) (Insolvency) No. 190 of 2020], held that the amount received as an advance payment by the Corporate Debtor for the supply of goods during the CIRP, on the failure of Corporate Debtor to supply the said goods, is to be treated as CIRP costs. The Appellate Authority observed that section 20(2)(e) gives power to the IRP to take all actions as are necessary to keep the Corporate Debtor as a going concern. In managing the business operations of the Corporate Debtor, if advance payments for the supply of goods are received, it cannot be treated as raising interim finance. It is an advance for payment of goods which the Corporate Debtor, as a going concern, maybe manufacture. The goods are either to be supplied, or the amount should be returned. If the goods are not supplied, the purchaser cannot be made to run for his money. If this approach is not changed, it will become difficult to keep the Corporate Debtor as a going concern. Such amount received as an advance payment for the supply of goods during the CIRP would have to be treated as CIRP costs.

The NCLAT in the case of MV Projects v. DivyaJyoti Sponges Iron Pvt Ltd. [Company Appeal (AT) (Insolvency) No. 481 of 2018], has held that if the Operational Creditor has supplied the goods during the period of the CIRP to keep the company as a going concern, it was the duty of the RP to include such cost towards ‘Resolution Process Cost’ under Section 5(13) of the Code for payment in favour of the Operational Creditor.The NCLAT observed that by not having done so, the resolution plan in question is in violation of Section 30(2)(a) of the Code.

The NCLAT also noted that pursuant to the initiation of CIRP, when the IRP/RP is required to manage the Corporate Debtor’s operations as a going concern in terms of Section 20 of the Code, if advance payments for supply of goods is received, it cannot be treated as raising interim finance. It is an advance for payment of goods which the Corporate Debtor as a going concern may be manufacturing and the goods are either to be supplied, or the amount should be returned. Thus, the NCLAT held that such an amount received as an advance payment for the supply of goods during the CIRP would have to be treated as CIRP costs.

Follow my social media platforms given below:-

https://www.facebook.com/mahenderkhandelwalca/
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Post-Dated ChequesIssued for Supply of Raw Material Services Pre-CIRP Period and Payment is Due During CIRPIt is a well ...
19/08/2021

Post-Dated ChequesIssued for Supply of Raw Material Services Pre-CIRP Period and Payment is Due During CIRP

It is a well settled position that once moratorium is imposed, no person can recover any amount from the account of the . In the case of post-dated cheques(“PDC”), even though the cheque dates back to the date of handover, it cannot be encashed to recover the amount from the Corporate Debtor after moratorium beginsin view of the specific provisions laid down under Section 14 of the Code. However, the NCLAT in the case of SREI Equipment Finance Ltd. v. Amit Gupta [Company Appeal (AT) (Insolvency) No. 298 of 2019]held that the creditor is at liberty to move before a court of appropriate jurisdiction for appropriate relief, after refunding the amount of the encashed PDCs.

In light of the above, it is imperative to take note of the Supreme Court’s landmark decision in the case of P. Mohanraj&Ors. v. M/s Shah Brothers IspatPvt. Ltd. [Civil Appeal No.10355 OF 2018]wherein the Apex Court unequivocally and comprehensively ruled that continuation/institution of “proceedings“ under Section 138 and Section 141 of the Negotiable Instruments Act(“NI Act”)shall be covered under the relief of the moratorium offered by Section 14(1) (a) of the Code. In other words, during the pendency of a CIRP process under the insolvency regime, such proceedings can neither be instituted nor continued against the Corporate Debtor who may have allegedly committed the offense of dishonour of cheque.In furtherance to this, the Court also held that the relief under Section 14(1) (a) of the Code will not apply to the “natural persons “in-charge of the affairs of the Corporate Debtor such as the Director or the Manager but will only apply to the corporate entity or the artificial juristic person the natural persons manage. The Court allowed the relief to the but ruled that the proceedings under Sections 138 and 141 of the NI Act continue against the directors.

Get more details to follow my social media platforms given below:-
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A large number of companies are being sucked into bankruptcy as they are unable to pay loans. Insolvency professionals (...
13/08/2021

A large number of companies are being sucked into bankruptcy as they are unable to pay loans. Insolvency professionals (IPs) as they are also called help distressed and bankrupt companies liquidate assets. India introduced a new bankruptcy law — the Insolvency and Bankruptcy Code (IBC) — to assist banks to resolve the bad debt.

To know more about Insolvency and Bankruptcy laws and many more follow my social pages given below:-
https://www.instagram.com/mahender_khandelwal/
https://twitter.com/mkhandelwalca
https://www.linkedin.com/in/mahenderkhandelwal/

Insolvency professionals are enrolled with an Insolvency Agency and they are involved in the dissolution process of an i...
11/08/2021

Insolvency professionals are enrolled with an Insolvency Agency and they are involved in the dissolution process of an insolvent individual, companies, LLPs or partnerships. During the bankruptcy situation, the insolvency professionals play a vital role in liquidating the entity assets and other settlement processes.

I am MK Khandelwal Insolvency professionals with over 30 years in the entire continuum of structuring, financing through debt and equity instruments. To know more follow me my social media pages are given below:-
https://www.instagram.com/mahender_khandelwal/
https://twitter.com/mkhandelwalca
https://www.linkedin.com/in/mahenderkhandelwal/

Insolvency professionals are engaged in all stages of the insolvency process. They are also engaged in the liquidation s...
07/08/2021

Insolvency professionals are engaged in all stages of the insolvency process. They are also engaged in the liquidation stage, where the individual or company's assets are taken to pay off the outstanding monies owed.

I am MK Khandelwal Insolvency professionals over 30 years in entire continuum of structuring, financing through debt and equity instruments. To know more follow me my social media pages given below:-

https://www.facebook.com/mahenderkhandelwalca/
https://twitter.com/mkhandelwalca
https://www.instagram.com/mahender_khandelwal/

Corporate Insolvency Resolution Process (CIRP) refers to insolvency proceedings of corporate whereby any corporate debto...
06/08/2021

Corporate Insolvency Resolution Process (CIRP) refers to insolvency proceedings of corporate whereby any corporate debtor who commits a default would thereby allow a financial creditor, an operational creditor, or the corporate debtor itself to initiate corporate insolvency resolution process in respect of such corporate debtor. Insolvency is a most demanding career option of a professional.

To know more insolvency fessionals fllow me:-

https://www.facebook.com/mahenderkhandelwalca/

https://twitter.com/mkhandelwalca

https://www.instagram.com/mahender_khandelwal/

04/08/2021

Insolvency is a most demanding career option of a professional. The country has tried to groom insolvency professionals with its various training programmes for insolvency associates. The Insolvency and Banking Board of India (IBBI) created ways that allow Chartered Accountants and Company Secretaries. It is certainly one of the most challenging, involving and rewarding.

To know more insolvency professionals visit my blogs:-

https://mahenderkumarkhandelwal.blogspot.com/

https://mahenderkhandelwal.tumblr.com/

https://mahenderkumarkhandelwal.wordpress.com/blog/

https://mahenderkhandel.livejournal.com/1208.html

Insolvency is possibly the most demanding career option a professional can undertake. It is certainly one of the most ch...
03/08/2021

Insolvency is possibly the most demanding career option a professional can undertake. It is certainly one of the most challenging, involving and rewarding. I am Mahender Khandelwal Senior management and financial professional with wide experience spanning over 30 years in the entire continuum of structuring, financing through debt and equity instruments. Management and turnaround of Special situations and Insolvency across a wide spectrum of industries.

To know more about follow me:-
https://www.facebook.com/mahenderkhandelwalca/
https://twitter.com/mkhandelwalca
https://www.instagram.com/mahender_khandelwal/

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