Can You Add Remaining Dues and Possession Details to Form B After RP Rejection in CIRP?

In the complex world of India's Insolvency and Bankruptcy Code (IBC), 2016, creditors often face hurdles when submitting claims during the Corporate Insolvency Resolution Process (CIRP). A common query arises: Form B is Already Submitted to Resolution Professional which was Not Accepted Fully by him, now I Also Want to Add the Dues which Remain and I Also Want to Add the Point of Possession in it.

This question highlights a frequent pain point for operational creditors. If your initial Form B claim wasn't fully accepted, can you supplement it with outstanding dues and details like point of possession? This blog post breaks down the legal framework, procedures, and insights from NCLT cases to guide you. Note: This is general information based on regulations and precedents, not specific legal advice. Consult a qualified professional for your case.

Understanding Form B and RP's Role in CIRP

Form B is the prescribed format for operational creditors (excluding workmen and employees) to submit claims under Regulation 7 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations). Other creditors use Form F per Regulation 9-A. 2022 7 Supreme 991

The Resolution Professional (RP) verifies these claims under Section 18 and Regulation 13 of CIRP Regulations. If not fully accepted, it doesn't end the process. The RP must maintain and update the list of creditors as claims are admitted or satisfied. 2022 7 Supreme 991

Key point: The claim submission process is directory, not mandatory, as long as supported by proper proof. 2022 7 Supreme 991

Legal Permission to Add Supplementary Claims

Yes, generally, you can submit additional or amended claims before the Committee of Creditors (CoC) is constituted. Regulation 22 requires the RP to verify claims with proof and update the creditor list accordingly. This allows supplementing an initial claim that wasn't fully accepted. 2022 7 Supreme 991

• Remaining Dues: Include outstanding amounts with supporting documents like invoices, contracts, or ledgers. The law supports adding these if backed by evidence. 2022 7 Supreme 991
• Point of Possession: This detail is permissible if relevant (e.g., for secured assets or operational claims involving possession). Regulation 10 doesn't prohibit it; proof is key. 2022 7 Supreme 991

Post-CoC formation, updates are limited but possible with proof. 2022 7 Supreme 991

Step-by-Step Procedure to Amend and Resubmit

To add dues and possession points effectively:

1. Reference Prior Submission: Note the original Form B details and explain the additions (e.g., This supplements my earlier claim dated date, not fully accepted for reason);
2. List Remaining Dues Clearly: Specify amounts, periods, and attach proofs;
3. Include Point of Possession: Describe with evidence like delivery challans, possession letters, or photos;
4. Use Proper Forms: Stick to Form B (operational creditors) with proofs per Regulations 7, 8, 8-A, 9, 9-A; 2022 7 Supreme 991
5. Submit Timely: Before CoC constitution. Approach RP in writing;
6. Seek Acknowledgment: Request verification and list update.

If rejected again, consider NCLT application under Section 60(5) IBC.

Insights from NCLT and Other Cases

NCLT rulings reinforce flexibility in claim submissions. For instance, Counsel for Respondent/Resolution Professional submitted that the Resolution Professional has already filed IA No. 10/2024 for approval of the Resolution Plan to the Adjudicating Authority for approval of the Resolution Plan, which is already approved by the COC with 100% voting in favour of the plan ... aggregate dues is no.... 2024 Supreme(Online)(NCLT) 3745 This shows RPs handle ongoing dues even post-initial submissions.

In another case, tribunals directed RPs to admit claims post-rejection: We note that this Tribunal has already passed an order dated 07.01.2025, allowing the said application, directing the Resolution Professional to admit the claim of the Applicant. 2025 Supreme(Online)(NCLT) 1916 2025 Supreme(Online)(NCLT) 315

Employee/PF dues cases highlight procedural scrutiny: Claims rejected due to lapses can be clarified or resubmitted with data. 2024 Supreme(Online)(NCLT) 2166 2023 Supreme(Online)(NCLT) 643

Resolution plans often address full settlements: Payment to Unsecured Financial Creditors in full & final Settlement (full value and not NPV) - Payment to Government Dues in full & final Settlement (full value and not NPV) 2024 Supreme(Online)(NCLT) 4938 2024 Supreme(Online)(NCLT) 5379 2024 Supreme(Online)(NCLT) 1793

These precedents underscore that unadmitted dues risk extinguishment post-plan approval, emphasizing timely action. 2024 0 Supreme(Telangana) 304

Amendments for possession are allowed in pleadings: Plaintiffs also want for add relief of possession-of the suit land.

Shiv Mandir Prabandhak Committee, Khatik Mandi VS Piara Singh - Current Civil Cases

Potential Challenges and Best Practices

• Proof is Paramount: Without documents, additions may fail verification;
• RP Discretion: RPs must act diligently, but disputes go to NCLT;
• Timing Critical: Post-CoC, scope narrows;
• Dues Types: Employee/PF dues have priorities (Section 53 IBC).

Recommendations:- Document everything;- Reference prior claim;- Get legal help for compliance.

Key Takeaways

• Supplement Before CoC: Add dues and possession details with proof; 2022 7 Supreme 991
• Directory Process: Forms are flexible if evidenced; 2022 7 Supreme 991
• RP Duty: Verify and update lists; 2022 7 Supreme 991
• NCLT Support: Tribunals intervene for fair admissions. 2025 Supreme(Online)(NCLT) 1916

In summary, the IBC framework typically allows amending Form B for remaining dues and point of possession before CoC formation, supported by proof. Act promptly to safeguard your claim. For tailored advice, engage an insolvency expert.

References:- CIRP Regulations via 2022 7 Supreme 991- NCLT Orders: 2024 Supreme(Online)(NCLT) 3745, 2025 Supreme(Online)(NCLT) 1916, etc.