Company Cases

NCLT:- National company law tribunal (NCLT) is the original authority for adjudication of insolvency cases.

When a debtor defaults in payment, the creditor has a right to approach NCLT to initiate insolvency proceedings. The debtor is required to be put on notice prior to initiation of proceedings. A bank is a financial creditor. Suppler of goods is an operation creditor.

The times frame prescribed is relatively rigid.

If the NCLT is satisfied, the management of the company is handed over to a Committee of Creditors. An Insolvency Resolution Professional (IRP) is appointed to manage the affairs of the company. The IRP calls upon the persons to lodge their claims against the company. After evaluation, the IRP prepares a list of creditors of the Company and thereby the total debt owed by the Company. Separate lists are prepared for Financial and Operational Creditors.

The committee of the creditors call for bids from persons interested in taking over the concerned. If the bid of a concerned is accepted, the bidder takes over the company.

If bids are not accepted, the company may be put for liquidation. The liquidator would then distribute the asset of the company in the manner prescribed by law. Secured Creditors get their share prior to the unsecured creditors.

We have successfully initiated and defended Insolvency proceeding before NCLT.