A growing economy of a developing country like ours brings lots of cheer and hope but it also is marred by negatives like bad debts and bad loans. India has certainly come a long way economically in the past decade but it is severely bogged down under the mountain of Rs 10 trillion bad debt. The arrival of Insolvency and Bankruptcy Code, 2016, has brought cheer as it is an amalgamation of various previous codes and hence, provides single window clearance system.
Not all businesses flourish, neither do all ventures make way in the competitive landscape, there are quite a few failed projects. Unable to meet their obligations, these become insolvent and, in such situations, the only recourse for them may be filing for insolvency or bankruptcy.
If you are in a similar situation, fraught with peril and looking for bankruptcy lawyers in Delhi, then consider your hunt to be over!
MUDS Consultancy is a one stop firm for all such legal and judicial consultation and assistance. With our core values at the right place we are always striving to achieve the highest degree of success for all our clients within the legal framework. Armed with the best team of bankruptcy lawyers in Delhi, we extend unwavering support to such companies and businesses to deal with cumbersome rules and regulations and extend help in the entire process.
Our accomplished team of bankruptcy lawyers in Delhi constantly aspires to comprehend the clients’ circumstances and requirement and dispense reliable, honest & thoroughgoing legal advice accordingly.
Obviously, your best bet would be to select a firm like ours that has an exemplary track record in this field, and that which hires best of professionals and has successfully closed many deals.
You would surely not want to increase your anxiety by relying on a firm which hires novice and inexperienced bankruptcy lawyers in Delhi, for the simple reason that your problem might not be solved and may keep hanging.
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:
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,
II) Reject the Application and communicate such decision to the operational creditor and the corporate debtor if,
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:
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.
Demand Notice (form 3 and form 4 – IBBI Rules)
|Comparison Basis||Section 7 of IBC||Section 9 of IBC||Summary Suit (Order 37 of Cpc, 1908)||Section 138 of NI Act, 1881|
|Claim Amount||Minimum Amount is Rs. 1 lac||Minimum Amount is Rs. 1 lac||It is prescribed as per the Code of Civil Procedure, 1908.||It is prescribed as per the NI Act, 1881.|
|Limitation Period||It is 3 years from the date when the debt has become due.||It is 3 years from the date when the debt has become due.||The limitation is prescribed as per the||45 days is the time period for filing the case in the Concerned Court when the cheque has been bounced.|
|Total time-frame||6 months (Approx.)||6 months (Approx.)||3-4 months (Approx.)||6 months- 1 year (It can vary)|
|Type of Persons availing the Services||Homebuyers, Financial Institutions, Banks etc. (They all are termed as Financial Creditors)||Employees, Traders, Manfacturers (They all are termed as Financial Creditors)||Manfacturers, Traders, Buisnessmen and any other person dealing in goods and services.||Any person whose cheque has been bounced by the Bank due to insufficient funds on payment by the debtor.|
|Court Fees to be Paid||Rs. 25,000||Rs. 2,000||It is prescribed as per the Amount of claim.||It is prescribed as per the Amount of claim.|
The Insolvency and Bankruptcy Code, 2016, is uniform and extends all over India and is applicable on:
According to Section 3 (11) of IBC, ‘debt’ refers to any amount or obligation which is due from anyone; it includes financial as well as operational debt.
Section 12 of the Insolvency and Bankruptcy Code, 2016, states that the insolvency resolution process shall be completed within 180 days of applying to the NCLT.
The court fee varies in both cases, in the case of Financial Creditor filing the Insolvency Petition it is Rs. 25,000 and in case of Operational Creditor it is Rs. 2,000.
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Their Professional Approach blended with personal touch eases out all hassals in the Transaction.
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