+91 87966 25 333
+91 253 2312031
Insolvency And Bankruptcy
Stressed asset revival & restructuring services
Corporate Insolvency
The Insolvency and Bankruptcy Code (IBC) was introduced in 2016 to ensure that corporate insolvency resolution processes (CIRP) are conducted in a timely, transparent, and efficient manner. Under the IBC, CIRP is a process in which a corporate debtor, whether a company or a limited liability partnership, is taken through a series of steps to resolve its debt issues. The process is overseen by insolvency professionals who are appointed by the National Company Law Tribunal (NCLT). The CIRP process begins with an insolvency application, which can be filed by either the debtor or the creditor. Once the application is accepted, the insolvency professional will assess the financial position of the debtor and begin preparations for the resolution process. During this period, the debtor will be prevented from taking any major decisions and all its assets will be frozen. The next step in the CIRP process is the submission of a resolution plan by the insolvency professional. This plan must be approved by the creditors and the NCLT before being implemented. If the plan is approved, the debtors assets will be released and the resolution process will be complete. However, if the creditors reject the resolution plan, the debtor will be declared insolvent and a liquidator will be appointed to liquidate the debtor’s assets and distribute them among the creditors. The IBC provides a timely and transparent process for resolving corporate insolvency. It is an important tool for creditors to recover their dues and for debtors to restructure their finances. The IBC also allows the corporate debtor to continue its operations while the insolvency process is undertaken, which helps protect the interests of employees and other stakeholders.
Personal Insolvency
The Insolvency and Bankruptcy Code, 2016 (IBC) is a legislation passed in India to consolidate and amend the existing laws relating to insolvency and bankruptcy. It is a comprehensive code that seeks to provide a single platform for insolvency resolution, allowing both individuals and companies to quickly exit from a situation of financial distress. Under the IBC, personal insolvency is a process that allows individuals to be declared bankrupt and their assets liquidated in order to pay off their creditors. It is important to note that personal insolvency is only applicable to individuals and not to companies or firms. The process of personal insolvency in India is initiated by a creditor or debtor, who can file an insolvency petition with the National Company Law Tribunal (NCLT). The NCLT will then appoint an insolvency professional to conduct an inquiry into the assets and liabilities of the debtor and determine whether they are able to pay their debts. If the debtor is unable to pay their debts, the insolvency professional will file an application with the NCLT for a declaration of bankruptcy. Upon receiving the application, the NCLT will issue a bankruptcy order, which will declare the debtor as insolvent and appoint a bankruptcy trustee to manage their assets and liabilities. The bankruptcy trustee will then proceed to liquidate the debtor’s assets and distribute the proceeds amongst the creditors. Any surplus will be used to pay the debtor’s outstanding debts. Once all the creditors have been paid, the debtor will be discharged from their bankruptcy and will be free from any further liability. Personal insolvency under the IBC is an effective way to declare bankruptcy and settle debts in a timely and orderly manner. It provides a reliable platform for creditors and debtors alike to resolve their financial difficulties.
Liquidation
Liquidation under the Insolvency and Bankruptcy Code (IBC) in India is a process of winding up a company‘s affairs in order to convert its assets into cash to pay off its creditors. Under IBC, companies can go through a liquidation process after they have already gone through the insolvency resolution process. The liquidation process is conducted by the Insolvency and Bankruptcy Board of India (IBBI) and is supervised by the National Company Law Tribunal (NCLT). The liquidation process begins with a notice of liquidation being issued to the company. This notice will include information about the company‘s assets, liabilities, and its creditors. The company is then required to submit a list of its creditors and their claims. After the creditors have been notified, the NCLT will appoint a liquidator who will be responsible for collecting the assets of the company and distributing them amongst the creditors. The liquidator will then assess the company‘s assets, liabilities, and claims. They will then present a report to the NCLT detailing the company‘s financial position. The liquidator will then begin the process of selling off the company‘s assets to pay off its creditors. This includes selling property, equipment, inventory, and other assets. Once all creditors have been paid, the liquidator will submit a final report to the NCLT. The NCLT will then issue an order of liquidation, and the company will be dissolved. The Liquidation process under the IBC is an important part of the Indian insolvency system. It is designed to ensure that companies that are no longer viable are wound up in an orderly and fair manner. This process helps to protect the interests of creditors and other stakeholders, while also allowing the company to be dissolved in a timely and cost–effective manner.
DRT
Debt Recovery Tribunals (DRT) are quasi–judicial bodies that have been set up by the Government of India to resolve disputes between banks, financial institutions, and borrowers. DRT is empowered to decide cases involving the recovery of money or debts due to banks, financial institutions, and corporate debtors. DRT has been established under the provisions of the Recovery of Debts due to Banks and Financial Institutions Act, 1993. The DRT is the primary body responsible for resolving disputes between banks and borrowers regarding their financial obligations. The DRT has the power to recover any debt or money due from the borrower to the bank or financial institution. It can also issue other orders such as the appointment of a receiver, attachment of assets, and the sale of assets. The DRT also has the power to issue orders to banks and financial institutions to modify the terms of loan agreements, such as reducing the rate of interest, extending the repayment period, or restructuring the loan. The DRT also has the power to adjudicate disputes between banks and borrowers regarding the enforcement of security or collateral. The DRT can order banks and financial institutions to release security or collateral if the borrower has repaid the debt or money due. The DRT is an important part of India’s financial infrastructure and has the ability to adjudicate disputes quickly and efficiently. The DRT is the most reliable and effective means of resolving disputes between banks, financial institutions, and borrowers. It is a cost–effective, efficient, and time–saving option for resolving financial disputes.
Our Team Assists You With
Distressed and Sick Companies We Have Dealt with
| S.No | Name of the Comapany | Year | Debt Size |
|---|---|---|---|
| 1 | Awate Engineering Private Limited | 2020 | $ 2 million |
| 2 | Radha Madhav Corporation limited | 2020 | $ 137 million |
| 3 | Mercator Limited | 2020 | $ 871 million |
| 4 | Kalyani Education Private Limited | 2021 | $ 26 million |
| 5 | E & G Global Estates Limited | 2020 | $ 8 million |
Frequently Asked Questions
Ans: Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act. Form 17 needs to be filed along with Form 2 for such conversion and incorporation of LLP.
Ans: Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.
Ans: No. The essential requirement for setting LLP is ‘carrying on a lawful business with a view to profit’.
Ans: A minimum of two partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners.