The economic growth of India has been getting rave reviews throughout the world, as the government is trying its best to usher in a period of gaining investors’ confidence. Working steadfastly towards improving its rank in ‘ease of doing business’, the government has surely been successful. These positive factors have witnessed lots of businesses, big and small, mushrooming and occupying the space.
A booming economy does not bring success for all businesses and therefore, there are many companies, firms, etc. that are plagued by crippling debts and unable to continue. There are others who suffer because they are creditors and are at a loss as to how to recover their bad loans. To seek relief from any such condition, if you are on the lookout for bankruptcy lawyers in India then MUDS is the answer!
We are a name to reckon with, in the legal field, as dedicated towards delivering most viable solutions, advice and guidance. The newly introduced Insolvency and Bankruptcy Code, 2016, is the most effective instrument to deal with situations like insolvency, bankruptcy or recovery of overdue debt.
Our team of proficient bankruptcy lawyers in India extend unwavering support to companies, businesses and individuals to deal with cumbersome rules and regulations of the IBC. We have been able to successfully bring to closure 160+ such cases and furthermore, 50+ are in the pipeline.
We are a client centric firm with best human resources and outstanding infrastructure, devoting ourselves completely towards dispensing reliable, honest and thorough going legal advice according to the client’s requirement.
Businesses in India have been facing innumerable problems relating to bad loans, overdue debts, resulting in crippling of finances; impacting both the creditor as well as the debtor. Looking for relief through insolvency, bankruptcy or liquidation, your best bet is to appoint a legal firm to be successful in your endeavor.
MUDS consultancy firm boasts of an excellent team of bankruptcy lawyers in India which has years of experience in such legal matters. They are highly qualified and adept in dealing with all legalities and it is their deep insight and strategic approach which has helped the firm successfully close many such cases. The company has pan India presence and caters to all clients, irrespective of their geographical placements.
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.
Looking at the steps from the initiation of the process till the satisfactory solution, there is a great deal of legal work to be done. It is an arduous task to accomplish and there are many legalities that have to be followed and if any discrepancy remains, your application shall be rejected.
Take an informed decision today, so that you don’t have to regret tomorrow. An incompetent and inexperienced firm which does not engage top-notch bankruptcy lawyers in India, will not be able to relieve you of your problems.
We at MUDS completely comprehend the intricacies of such legal matters as insolvency, liquidation, etc. and feel greatly advantaged to cater to a gamut of big companies.
|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.|
Banks, Financial Institutions, Homebuyers, Enterprise, Corporate Entity or Company, etc. fall in the category of Financial Creditors and can approach under Section 7 of the Insolvency and Bankruptcy Code, 2016 for recovery of overdue debt. Whereas, Manufacturers, Traders, Employees etc. are called Operational Creditors and they
can approach under Section 9 of the Insolvency and Bankruptcy Code, 2016 for recovery of debt.
The creditor shall have to establish that:
The name of the resolution professional also needs to be proposed along with the application.
Thanks Muds Team for their all round support in successful delivery of services. Their approach is Client Centric and they possess the deep understanding of the Subject
Their Professional Approach blended with personal touch eases out all hassals in the Transaction.
We have been working with Muds since 4 years and their service is dependable. I highly recommend Muds in every facets of Business for the hassal free sleep.