S Responsibility Statement explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Where a company proposes a scheme of corporate debt restructuring, section 230(2)(c) requires the company to disclose to the Tribunal, by affidavit, among other things a creditor's responsibility statement in the prescribed form. That form is Form CAA.1. This article gives a specimen in plain words, explains who signs it and where it goes, and notes the points to check.
Form CAA.1 is a short declaration by each creditor who has consented to the corporate debt restructuring scheme. The creditor states the amount owed, that he or she has read and understood the scheme and concurs with it in the creditor's interest, that the debt was created in good faith and in the ordinary course of the company's business, and that the scheme gives no fraudulent preference over other creditors. Section 230(2)(c) applies to a scheme of corporate debt restructuring consented to by not less than seventy-five per cent of the secured creditors in value, and the statement is one of the items the company discloses to the Tribunal by affidavit. The format follows the form as printed in the rules consulted; check the current form on the MCA or NCLT portal before use.
When you need this statement
You need it when the company or any other applicant files an application under section 230(1) and the compromise or arrangement includes a scheme of corporate debt restructuring that has been consented to by at least three-fourths in value of the secured creditors. Section 230(2) requires the applicant to disclose to the Tribunal by affidavit all material facts relating to the company, including its latest financial position, the latest auditor's report and any pending investigation, any reduction of share capital included in the scheme, and, for a corporate debt restructuring scheme, the items listed in section 230(2)(c), starting with the creditor's responsibility statement. Our section 230 guide and the NCLT compromise and arrangement guide explain the scheme in full. For help assembling the papers, see our compliance documentation service.
Specimen creditor's responsibility statement
FORM NO. CAA.1 CREDITOR'S RESPONSIBILITY STATEMENT In the matter of the scheme of corporate debt restructuring of Limited (Company Application / Petition No. of , ]) I / We, , , having our registered office / residing at , being a creditor of Limited (the Company) for an amount of as on , declare as follows: 1. I / We have read and understood the proposed corporate debt restructuring scheme, a copy of which is annexed to the application / notice dated . 2. I / We have formed the view that it is in my / our interest to concur with the scheme, and I / we consent to the scheme. 3. The debt owed to me / us by the Company, or the liability created by the Company in my / our favour, was created in good faith and in the ordinary course of the business of the Company. 4. I / We believe that the scheme does not give me / us any fraudulent preference at the cost of any secured or unsecured creditor of the Company. 5. , and the value of my / our secured debt is .] For Signature of the creditor / authorised signatory: Name and designation: Date: Place:
Clause-by-clause explanation
| Part | What it does | Drafting tip |
|---|---|---|
| Heading and rule reference | Identifies the form and the statutory source | Quote section 230(2)(c)(i) |
| Matter and case number | Links the statement to the application | Fill in the application number once allotted |
| Creditor and amount | States who the creditor is and the sum owed as on a date | Use the figure shown in the Company's books and the creditor's records |
| Reading and understanding the scheme | Records that the creditor has seen the scheme | Annex or identify the version dated |
| Concurrence in the creditor's interest | Records informed consent | Keep it in the creditor's own name |
| Good faith and ordinary course | Confirms the debt is genuine | Do not sign if the debt is disputed or unusual |
| No fraudulent preference | Confirms the scheme does not favour this creditor at others' cost | Check the scheme before signing |
| Signature block | Authenticates the statement | Include designation for institutional creditors |
The law behind it
Section 230(1) lets the Tribunal, on the application of the company or of any creditor or member, or of the liquidator in a winding up, order a meeting of the creditors or class of creditors, or members or class of members, to be called, held and conducted as the Tribunal directs. Section 230(2) requires the applicant to disclose to the Tribunal by affidavit all material facts, including the latest financial position, the latest auditor's report and any investigation pending, and any reduction of share capital included in the scheme.
Section 230(2)(c) then requires disclosure of any scheme of corporate debt restructuring consented to by not less than seventy-five per cent of the secured creditors in value, including (i) a creditor's responsibility statement in the prescribed form, (ii) safeguards for the protection of other secured and unsecured creditors, (iii) a report by the auditor that the fund requirements of the company after the restructuring conform to the liquidity test based on the Board's estimates, (iv) where the company proposes to adopt the corporate debt restructuring guidelines specified by the Reserve Bank of India, a statement to that effect, and (v) a valuation report on the shares and all assets, tangible and intangible, movable and immovable, by a registered valuer.
The statement is not a substitute for the creditors' vote at the meeting. Under section 230(6), the scheme binds the company and all creditors or classes only if a majority representing three-fourths in value of the creditors or class, voting in person, by proxy or by postal ballot, agree and the Tribunal sanctions it. See the scheme and arrangement approval guide. The petition after the meetings is in Form CAA.5. The form and the rules may be amended; check the current text before filing.
Who signs and where it goes
Each consenting creditor signs; an institutional creditor signs through an authorised officer. The statements are collected by the company or the applicant and filed with the affidavit of disclosure under section 230(2), along with the other documents listed in section 230(2)(c). No stamp duty or registration is attached to the statement as a rule; any court or Tribunal fee is payable on the application as per the applicable rules and no figure is stated here. See our stamp duty overview for other documents.
Common mistakes
- Using a creditor who has not actually read the scheme.
- Stating an amount that does not match the company's books as on the stated date.
- Signing for a disputed debt or one not created in the ordinary course of business.
- Leaving out the date on which the amount is stated.
- Having an unauthorised officer sign for an institutional creditor.
- Not checking that the scheme gives no preference to the signing creditor over others.
- Filing the statements without the other items listed in section 230(2)(c).
- Treating the statement as a replacement for the vote at the creditors' meeting.
Need help with scheme documents?
A scheme of compromise or arrangement brings together statements, notices, affidavits and petitions that must match. Our team can prepare and check the papers at each stage; see our compliance documentation service. For the notice that follows the Tribunal's order, read our Form CAA.2 notice of meeting article.
Key takeaways
- Form CAA.1 is the creditor's responsibility statement under section 230(2)(c)(i).
- It applies to a corporate debt restructuring scheme consented to by at least seventy-five per cent of secured creditors in value.
- Each consenting creditor declares good faith, ordinary course and no fraudulent preference.
- It is filed with the affidavit of disclosure, not instead of the vote.
- Check the current form before use.
Read next
- Section 230: compromise and arrangement
- Compromise and arrangement under section 230: NCLT guide
- Notice and advertisement of a Tribunal-convened meeting (Form CAA.2)
- Notice to the Central Government and regulators (Form CAA.3)
Disclaimer: This specimen is a general model for information. Every document must be adapted to its facts and to the law, rules and forms in force when it is signed or filed; stamp duty, registration and court fees depend on the State and the forum. This article is general information, not legal advice; check the official text before acting.