Various stakeholder are required to prepare of a wide array of documents during the insolvency process. These documents are critical for ensuring compliance with legal and regulatory frameworks, maintaining transparency, and facilitating seamless communication among various stakeholders and regulatory authorities. Each document has a specific purpose in the process and must be meticulously drafted to meet statutory and procedural requirements.

Corporate Insolvency Resolution Process (CIRP) involves drafting numerous key documents.

• Public Announcements, which are used to notify and invite creditors to submit claims against the corporate debtor. This document serves as a formal call for all creditors to provide details of their claims, ensuring their inclusion in the resolution process. Additionally, the Announcement for Expression of Interest (EOI) is issued to invite prospective resolution applicants to submit proposals for the revival of the corporate debtor. Considering the financial constraints, the Public Announcements are made only once in one English and one regional Newspaper as per timelines but once integrated with AI, public announcement can be viewed in any of the regional languages on a portal and the link of the same can be provided on the newspaper article.
• Information Memorandum (IM). This comprehensive report contains all relevant details about the corporate debtor, including its assets, liabilities, operations, and overall financial position. It is a key resource provided to potential resolution applicants to help them evaluate the company and prepare viable resolution plans.
• Minutes of CoC/Meetings with creditors, which capture the discussions, resolutions passed, and decisions taken during the meetings of the Committee of Creditors (CoC). These minutes are formal records that ensure transparency and accountability in the decision-making process.
• Due Diligence Reports are prepared to assess resolution plans or asset sale proposals, ensuring their compliance with statutory requirements and their overall viability.
• Progress Reports are required to be prepared periodically to provide updates on the progress of the CIRP/Liquidation to the Adjudicating Authority, ensuring that all steps are documented and compliant with regulatory requirements.

For the Corporate Liquidation Process (CLP), additional documents are required to facilitate the liquidation of the corporate debtor’s assets which include Preliminary Report, which provides an initial assessment of the debtor’s financial position, listing its assets, liabilities, and any key issues that may impact the liquidation process.

• Asset Memorandum, which offers a detailed description of all the debtor’s assets. This memorandum includes valuations and estimated liquidation values, providing a clear picture of the resources available for distribution among creditors. It serves as a foundational document for planning asset sales and liquidation timelines. Asset Sale Report is another such document which is required to be prepared and submitted before the Adjudicating Authority which provides the whole Sale Process.

In cases of Personal insolvency Resolution Process, repayment plans outline proposals for repayment schedules, which are submitted to creditors for approval, which is required to be submitted by the debtor in consultation with the Resolution Professional. These plans aim to balance the debtor’s financial constraints with the creditors’ recovery expectations.

• Statement of Affairs details the individual debtor’s financial position, including assets, liabilities, income sources, and any other relevant financial data. This document provides creditors with a clear understanding of the debtor’s capacity to repay.
• Forensic and Financial Reports play a significant role in ensuring due diligence and detecting fraudulent activities. Transaction Audit Report, provides a detailed analysis of past transactions conducted by the debtor. These reports are used to identify Preferential, Undervalued, Fraudulent, or Extortionate (PUFE) transactions, ensuring that any malpractices are brought to light and addressed appropriately.
• Asset Valuation Reports provide independent valuations of the debtor’s assets, which are essential for both the resolution and liquidation processes. They help establish fair market values and guide decisions regarding sale of assets.
• Legal Opinions are sought at various critical scenarios wherein the Resolution Professional or any other stakeholder might require legal assistance and, in such scenarios, AI can give a perspective backed by a statute or a precedent.

Each document plays a crucial role in achieving the overarching goal of balancing the interests of creditors, debtors, and other parties involved. Document Drafting Agents play a pivotal role in automating the creation of critical legal documents, such as Resolution Plans, Progress Reports, and Compliance Filings, significantly reducing the manual workload and associated time. By leveraging natural language processing (NLP) and generative AI technologies, these agents ensure that the documents adhere to statutory language, regulatory guidelines, and formatting standards, minimizing the risk of human errors. This not only enhances the accuracy and professionalism of the documents but also ensures compliance with legal requirements. Furthermore, these agents extend their capabilities beyond basic document creation by assisting in drafting responses to objections raised by stakeholders, providing well-structured and legally sound arguments. By streamlining these time-intensive tasks, Document Drafting Agents enable insolvency professionals to focus on strategic decision-making and case management.