Insolvency And Bankruptcy
The Companies Act of 1956, the Sick Industrial Companies (Special Provisions) Act of 1985, the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Act, and the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest act were among the numerous laws that dealt with the insolvency and restructuring procedures of corporate entities, partnership firms, and individuals prior to the implementation of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016 or code). Multiple laws, forums, and complications made it difficult to resolve troubled companies, partnership businesses, or people promptly. This further caused the assets of the borrower to lose value, rendering insolvency negotiations unnecessary. The laws governing bankruptcy and insolvency have undergone considerable revisions in India. The Insolvency and Bankruptcy Code, 2016, which was passed to correct the shortcomings of the earlier bankruptcy legislation, has had a significant influence, even in the short term. Since the Code was adopted in 2016, one of the most dynamic legal areas in India has been insolvency law. The Code has made it possible for financial creditors to play a big role in businesses, opened doors for investors to invest, and sparked considerable disputes between parties. It has affected a variety of industrial sectors, including the steel industry and real estate. Therefore, it necessitates a more proactive strategy to reduce the likelihood of suffering significant losses. Due to its in-depth understanding of fundamental corporate and commercial law and its awareness of many business sectors, the company can offer comprehensive and effective guidance to Clients.
- Advising Committee of creditors (CoC)
- Drafting and filing the resolution plan
- Representation of the client before NCLT, NCLAT
- Filing of notices
- Structuring the insolvency plan
- Recovery of rightful dues
Our team provides litigation and advising services to customers. The firm can provide comprehensive and efficient counsel to Clients because of its deep knowledge of fundamental corporate and commercial legislation and its comprehension of diverse business sectors. We have represented creditors and debtors in a number of cases concerning the Insolvency and Bankruptcy Code, 2016, before various appellate and company law tribunals. On behalf of a number of clients, the team has also started the insolvency resolution procedure and asked for relief before the NCLT. The firm is ideally situated to provide asset reconstruction companies with strategic guidance. The team assists and provides guidance in the evaluation of a stressed company’s assets and liabilities and, in accordance, provides advice on the risk associated with acquiring the businesses of stressed firms that are going through a resolution process.
The Code 2016 distinguishes between financial and operational creditors. An individual who owes the money is referred to as a financial creditor. The operational creditor is the individual who is responsible for the operational debt. Operational creditors ask for the creation of commodities and services to pay back government obligations.
To start the fast-track resolution procedure, a creditor or a corporate debtor must apply the AA and provide documentation of the default. An IRP is appointed after the application is accepted, and if after reviewing the corporate debtor's records he determines that the fast-track process does not apply to the corporate debtor, he must file a request with the AA before the end of 21 days from the date of his appointment asking for an order to change the fast-track process into a regular CIRP.
Through the notification by the Ministry of Corporate Affairs (MCA) pertaining to the establishment and role of Information Utilities (IUs) on 1st April 2017, to act as a data storage entity that collects information from various sources and stores it in an electronic format safely and securely, the IBC 2016 also attempted to address the issues of existing laws and various conflicts that arose between debtors and creditors with respect to the gaps in the information system.
Why Avobe Legal
In our journey towards excellence, we are committed to attract, finest solution. Avobe Legal’s reputation is owed to the exceptionally talented and dedicated professionals whose ideas drive the Firm forward.
As one of Rajasthan’s boutique law firm, we help our clients grow, innovate and thrive. For over a period of two years, we have built a reputation for our expertise, specialised solutions and the ability to think ahead. We find the most relevant and highly tailored solutions to our clients’ composite legal challenges.
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