We are mainly involved in the Insolvency and Bankruptcy kind of disputes where we represent Corporate Debtors, Resolution Professionals, Operational Creditors, and Financial Creditors. These matters are conducted under the Insolvency and Bankruptcy Code, 2016 and filed before the National Company Law Tribunal.
The Insolvency and Bankruptcy Code, 2016 (‘Code’) reconceptualized the framework forinsolvency resolution in India. It provides a mechanism for the Insolvency Resolution of debtors in a time bound manner to enable maximization of the value of their assets, with a view to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
The Code separates commercial aspects of Insolvency and Bankruptcy proceedings fromjudicial aspects and empowers and facilitates the stakeholders and the Adjudicating Authority are to decide matters within their respective domain expeditiously. It envisages a market mechanism to rescue firms in financial distress and to facilitate closure of firms in economic distress, in accordance with the processes under the Code and rules and regulations made thereunder.
This Code applies to a company registered under the Companies Act 1956, a Limited liability partnership, Partnership firms and Individuals. Under the Insolvency and Bankruptcy Code, 2016, any financial creditor or an operational creditor can initiate corporate insolvency process against a corporate debtor when the corporate debtor commits a default in repayment of debts. Default involves non repayment of debt when it has become due and payable.
Hence, when any Financial or Operational creditor is not honoured duly, they can initiate insolvency proceedings against the corporate debtor under the Code.
The Codelays down strict time frame for each and every process for resolution process right from admission of application, appointment of Interim Resolution Professional, lodging of claim, formation of Creditors Committee, consideration of resolution plan and submission of plan to Adjudicating Authority and its approval thereof. To effectively address the issues of participation of various stake holders, the Code has divided creditors into two categories of Financial Creditors and Operational Creditors.