Insolvency & Bankruptcy Services

Corporate insolvency resolution is governed by the Insolvency and Bankruptcy Code 2016 (IBC). A financial creditor, an operational creditor, or the corporate debtor itself may initiate the Corporate Insolvency Resolution Process (CIRP) before the NCLT under Sections 7, 9 and 10 of the IBC respectively, once a qualifying default has occurred. The minimum default threshold to trigger CIRP is ₹1 crore under Section 4, IBC 2016 (as raised from the original ₹1 lakh by Central Government notification dated 24 March 2020 — a threshold that remains in effect and materially limits which creditors can invoke the Code). CIRP must ordinarily be completed within 330 days of the insolvency commencement date, inclusive of any extensions granted by the NCLT and time spent in related litigation, per Section 12 as interpreted by the Supreme Court. Where no resolution plan is approved within this timeline, the corporate debtor moves into liquidation under Chapter III (Sections 33-54), which follows a separate waterfall of priority for distributing sale proceeds under Section 53.

Insolvency and bankruptcy services cover the resolution of a company's financial distress under the Insolvency and Bankruptcy Code 2016 (IBC) — from the early assessment of the company's viability, through the corporate insolvency resolution process (CIRP) under Section 7 (financial creditor), Section 9 (operational creditor) or Section 10 (corporate debtor), to the resolution plan, the liquidation under Section 33, and the fast-track and the voluntary liquidation routes. The Code replaced the old recovery machinery with a time-bound process designed to resolve or liquidate within the timelines it prescribes.

The IBC is the machinery of last resort, and it is unforgiving of the unprepared. A corporate debtor that enters the CIRP faces the moratorium under Section 14 — the suspension of the claims and the recovery actions — and the management is displaced by the resolution professional. The process is a race against the timelines of the Code: the admission, the claims, the expression of interest, the resolution plan, each stage with its own deadline.

The cost of unmanaged distress is the loss of control: the financial creditor's application under Section 7, the operational creditor's application under Section 9 with the demand notice of Section 8, and the personal guarantor's exposure under Section 128 of the Code. The earlier the business engages, the more of the process it can shape; the later it engages, the more the process shapes it.

This service is for companies in financial distress, their creditors, and the acquirers of stressed assets. We assess the viability and the routes under the Code, prepare and defend the applications under Sections 7, 9 and 10, support the CIRP — the claims, the resolution plan, the Committee of Creditors — advise on the liquidation under Section 33 and the voluntary routes, and help the acquirers evaluate and bid on the stressed assets.