IBBI has recently circulated to all the Insolvency Professionals and other service providers in relation to Deposit of Unclaimed Proceeds relating to Liquidation and Voluntary Liquidation Processes. This communication was in furtherance of its own Circulars dated 09th January 2020 and 20th January 2020.

The text of the communication is as under:

1. Regulation 46 of the IBBI (Liquidation Process) Regulations, 2016 and Regulation 39 of the IBBI (Voluntary Liquidation Process) Regulations, 2017 provide that the IBBI shall operate and maintain an Account to be called the Corporate Liquidation Account and Corporate Voluntary Liquidation Account, respectively, in the Public Accounts of India for the purpose of making deposit of the amount of unclaimed dividends and undistributed proceeds, if any, in a liquidation or voluntary liquidation process, respectively, by the liquidator. It further provides that until the Corporate Liquidation Account and Corporate Voluntary Liquidation Account are operated as part of the Public Accounts of India, the IBBI shall open separate bank accounts with a scheduled bank for the said purpose.

2. The Board, in this regard, vide Circulars dated 09thJanuary 2020 and 20th January 2020 provided the mechanism for deposit of unclaimed dividends and undistributed proceeds, if any, into the Corporate Liquidation Account and Corporate Voluntary Liquidation Account, respectively. In many instances, it has been observed that the liquidators are inadvertently depositing the unclaimed proceeds relating to the liquidation process into the Corporate Voluntary Liquidation Account and the proceeds relating to the voluntary liquidation process into the Corporate Liquidation Account.

3. For ease of reference,

i) the particulars of Corporate Liquidation Account(as mentioned in the said Circular) are reiterated as under:

Name of the Account : IBBI-Corporate Liquidation Account

Account Number : 2254005800000015

Nature of Account : Current

Name of the Bank : Punjab National Bank

IFSC Code : PUNB0225400

Name of the Branch : Barakhamba Road Branch, New Delhi

ii) the particulars of Corporate Voluntary Liquidation Account(as mentioned in the said Circular) are reiterated as under:

Name of the Account : IBBI-Corporate Voluntary Liquidation Account

Account Number : 2254002100020356

Nature of Account : Current

Name of the Bank : Punjab National Bank

IFSC Code : PUNB0225400

Name of the Branch : Barakhamba Road Branch, New Delhi

4. The Insolvency Professionals are requested to take note of the aforesaid accounts and ensure strict compliance of Regulation 46 of IBBI (Liquidation Process) Regulations, 2016 read with Circular dated 09thJanuary, 2020 and Regulation 39 of IBBI (Voluntary Liquidation Process) Regulations, 2017 read with Circular dated 20th January 2020.

The above communication is aimed to prevent the situations of deposit of the unclaimed proceeds relating to the liquidation process into the Corporate Voluntary Liquidation Account and the proceeds relating to the voluntary liquidation process into the Corporate Liquidation Account by the Liquidators.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.