Bankruptcy Consultants in Delhi

Delhi is the centre of power, education, culture as well as business. Going hand in hand with India’s economic growth, Delhi has also witnessed a spurt in businesses of all kinds. Many a time it happens that these entities are unable to continue their operations smoothly, despite their best efforts and become insolvent. Overdue debts and financial liabilities start to bog them down and then the creditors seek action against them to reclaim their dues.

If you or your company is a debtor or a creditor and looking for effective means to resolve your debt problems, then Insolvency and Bankruptcy Code, 2016 is the answer. All you need to do is approach a firm that provides services of bankruptcy consultants in Delhi.

MUDS is a consultancy firm, a name to reckon with in the legal field, with an excellent track record in cases pertaining to insolvency, bankruptcy and liquidation. Our highly proficient team of bankruptcy consultants in Delhi is dedicated towards delivering most viable solutions, advice and guidance. We understand the perils of bad debt; it impacts the economic health along with aggravating physical and mental stress.

If you are running after a corporate debtor and the amount due is more than one lakh rupees, then avail our services of bankruptcy consultants in Delhi immediately. Our vision is to constantly aspire to comprehend the clients’ circumstances and requirement and dispense reliable, honest and thoroughgoing legal advice accordingly.

With 90+ successful cases of insolvency already in our catalogue, there is no doubt that we have created a niche for ourselves in bringing such cases to effective conclusion in the shortest time.

Recovery Of Debt Services That We Offer In Delhi:

• Initiation of Corporate Insolvency Resolution Process by Financial Creditor: Section 7 of IBC
• Application for initiation of corporate insolvency resolution process by Operational Creditor: Section 9 of IBC.
• Summary Suit (Order 37 of the Code of Civil Procedure Code, 1908)
• Section 138 of the Negotiable Instruments Act, 1881 (Cheque Bounce cases)

It is imperative whether you fall in the category of financial or operational creditor, or a debtor, our bankruptcy consultants in Delhi with tons of experience behind them, will bring satisfactory result. We have an impeccable reputation of being completely dedicated towards professional ethics and fairness along with being cost effective.

Eligibility Criteria To File Recovery Of Debt Cases:

1. In case of initiation of Corporate Insolvency Resolution Process by Financial Creditor, it should owe the financial debt and the debt should be legally assigned to him and transferred. The Term “Financial Creditor” includes Banks, Financial Institutions, Homebuyers, Enterprise, Corporate Entity or Company (Section 7 of the IBC).

According to Sub-section (1) of the Act, the Financial Creditor either by itself or jointly with other financial creditors may file an application for initiating the Corporate Insolvency Resolution Process against a corporate debtor when a default has occurred.

The Adjudicating Authority shall within 14 days of the receipt of the application under sub-section (2), ascertain the existence of the default from the records of the information utility or on the basis of the evidence furnished by the financial creditor under sub-section (3).

Also, where the Adjudicating authority is satisfied that:

• A default has occurred and the application under sub-section (2) is complete, and there are no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or
• Default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may by order, reject such application.

2.  In case of initiation of Corporate Insolvency Resolution Process by the Operational Creditor, the Operational Creditor should owe the financial debt and the debt should be legally assigned to him and transferred. The term “Operational Creditor” includes Manufacturers, Traders, Employees (Section 9 of the IBC).

After the expiry of the period of 10 days from the date of delivery of the notice or the invoice demanding payment under (1) of section 8, if the operational creditor does not receive payment from the corporate debtor or the dispute under sub-section (2) of section 8, the operational creditor may file an application before the adjudicating authority for initiating the CIRP process.

The Adjudicating authority shall within 14 days of the receipt of the application under sub-section (2), by an order:

I) Admit the application and communicate such decision to the  operational  creditor and corporate debtor if,

• The application made under sub-section (2) is complete.
• There is no repayment of the unpaid operational debt.
• The invoice or notice for payment to the corporate debtor has been delivered by the operational creditor.
• No notice of dispute has been received by the operational creditor or there is no record of dispute in the information utility; and
• There are no disciplinary proceedings pending against any resolution professional proposed under sub-section (4).

II) Reject the Application and communicate such decision to  the  operational  creditor and the corporate debtor if,

• The application made under sub-section (2) is incomplete.
• There has been repayment of the unpaid operational debt.
• The Creditor has not delivered the invoice or notice for payment to the corporate debtor.
• Notice of dispute has been received by the operational creditor or there is a record in the information utility.
• Any disciplinary proceeding is pending against any proposed resolution professional.

3.   In case of the Summary Suit under Order 37 of the Code of Civil Procedure, 1908, the Creditor shall file the Summary Suit in the respective courts having jurisdiction if there is a suit upon Bills of Exchange, Hundis and Promissory Notes.

Suits in which the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant, with or without interest, arising:

• On a Written Contract,
• On an Enactment, where the sum sought to be recovered is a fixed sum of money or in the nature of the debt other than a penalty; or
• On a guarantee, where the claim against the principal is in respect of a debt or liquidated demand only.

4.  Section 138 of the Negotiable Instruments Act, 1881 (Cheque Bounce Recovery Case): If the customer delays the payment through cheque then the seller can file a suit against the customer under Section 138 of the Negotiable Instruments Act, 1881.

Under Section 138, a legal notice is sent to the customer regarding the bouncing of the cheque and if he does not pay within 30 days, then the seller can file a suit against the customer under Section 138 of the NI Act regarding non-payment of the payment.