Insolvency Professional Resolution Management
Partners / Team Members of the firm are registered as an “Insolvency Professional” with Insolvency and Bankruptcy Board of India under Insolvency and Bankruptcy Code, 2016. The firm has a strong team in alternate dispute resolution solutions particulars in domestic and international commercial arbitrations. We provide insolvency resolution management and arbitration resolution services relating to commercial contracts dispute, investment disputes, joint ventures etc. Basic framework of Insolvency and Bankruptcy code and our services are under:
- Government of India has initiated bold steps by introduction of Insolvency & Bankruptcy Code 2016 in view to reduce NPA / recovery of dues of the banks / financial institutions. The code provides separate insolvency resolution processes by individuals, companies and partnership firms including LLP and endeavors to provide a speedy and time bound mechanism to deal with the proceedings.
- It’s a time bound program wherein the IP shall act as an intermediary between the company and its creditors for resolving the Insolvency process within 180 days from the date of appointment. The case of insolvency for Corporate / LLP’s shall be taken care by National Company Law Tribunal (NCLT) and for individual and partnership firm by Debt Recovery Tribunal (DRT).
- The Insolvency and Bankruptcy Code passed by the Parliament is a welcome overhaul of the existing framework dealing with insolvency of corporate(s), individuals, partnerships and other entities. It paves the way for much needed reforms while focusing on creditor driven insolvency resolution. Earlier, there were multiple overlapping laws and adjudicating forums dealing with financial failure and insolvency of companies and individuals in India. The legal and institutional framework did not aid lenders in effective and timely recovery or restructuring of defaulted assets and causes undue strain on the Indian credit system. Recognizing that reforms in the bankruptcy and insolvency regime are critical for improving the business environment and alleviating distressed credit markets. After a public consultation process and recommendations from a joint committee of Parliament, both houses of Parliament have now passed the Insolvency and Bankruptcy Code, 2016 (Code). While the legislation of the Code is a historical development for economic reforms in India, its effect will be seen in due course when the institutional infrastructure and implementing rules as envisaged under the Code are formed.
- Our firm as an Corporate Insolvency Resolution Process (CIRP) starts with the admission of the application by the National Company Law Tribunal and appointment of the Interim Resolution Professionals and perform number of tasks including taking over of the management of debtors, public announcements, invitation, collation and verification of claims, preparation of list of creditors, reporting to adjudicating authority, calling of first meeting of creditors, preparation of memorandum of association and so on.