Insolvency Claim Verification: Expert Support & Guidance | ASC Group

Insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) require accurate identification and verification of creditor claims. Claim verification helps establish the amounts owed by the corporate debtor and supports the preparation of the list of creditors during the Corporate Insolvency Resolution Process (CIRP). Under Regulation 13 of the CIRP Regulations, the Interim Resolution Professional or Resolution Professional is responsible for verifying claims received from creditors.

What Is Insolvency Claim Verification?

Insolvency Claim Verification is the process of examining claims submitted by creditors and assessing them against available evidence, records and information relating to the corporate debtor.

The verification process may involve checking the amount claimed, nature of the debt, supporting documents, security interests and the relevant position as on the insolvency commencement date. The verified information is then reflected in the list of creditors maintained during the CIRP.

Why Is Claim Verification Important?

A CIRP can involve claims from multiple categories of creditors, including financial creditors, operational creditors, employees and government authorities. Proper verification helps maintain an organised record of claims and assists the insolvency process in determining which amounts are admitted, disputed, pending verification or otherwise treated under the applicable regulations.

IBBI's published claim records demonstrate that claims may remain under verification where supporting documents or information are incomplete and may subsequently be updated when additional information becomes available.

Key Steps in Claim Verification

The claim verification process generally requires careful examination of:

• Claim forms and supporting documents

• Agreements, invoices and financial records

• Loan and security documents, where applicable

• Outstanding principal and interest amounts

• Books and records of the corporate debtor

• Information available from creditors and other sources

• Security interests associated with the claim

• Payments or recoveries already received by the creditor

The Resolution Professional may revise an admitted claim when additional information becomes available and warrants a revision.

Claim Verification Online

With insolvency processes increasingly supported through digital reporting and information systems, Claim verification online can assist stakeholders in accessing relevant claim information and tracking the status of claims where such information is published through the applicable platform.

IBBI maintains online claim-related information for various corporate insolvency processes, including details such as claims received, claims admitted, claims under verification and amounts not admitted.

However, online availability of information does not replace the statutory responsibility of the appointed insolvency professional to verify claims in accordance with the applicable IBC framework.

Common Challenges in Claim Verification

Creditors may face difficulties when documentation is incomplete, financial records differ from submitted claims, transactions require reconciliation, or information relating to the debt is not readily available.

Some common areas requiring attention include:

• Mismatch between books and creditor statements

• Missing supporting documentation

• Incorrect calculation of interest

• Disputed or contingent claims

• Changes in outstanding balances

• Security-related documentation

• Late submission or updating of information
  

Maintaining complete and consistent records can make the verification process more efficient.

How ASC Group Can Help

ASC Group provides professional support related to insolvency processes, including assistance with documentation, financial information review, claim reconciliation and coordination of information required for claim-related matters.

Its support can help creditors and other stakeholders organise relevant records, identify discrepancies and prepare information for submission to the appropriate insolvency professional.

The statutory verification itself must be performed by the appointed Interim Resolution Professional or Resolution Professional as prescribed under the IBC and applicable regulations. IBBI has also clarified that statutory duties and responsibilities of an insolvency professional cannot simply be outsourced.

Conclusion

Insolvency Claim Verification is an important component of the CIRP because accurate creditor information supports the administration of the insolvency process. Proper documentation, financial reconciliation and timely submission of relevant evidence can help stakeholders present their claims effectively. ASC Group provides structured professional support for claim documentation, review and insolvency-related requirements while keeping the applicable IBC and IBBI framework in view.