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Insolvency Consultants In Delhi

Recovery Of Financial And Operational Debt In Delhi Through Insolvency

Drafting of Insolvency Petition
Filing of your matter with NCLT, Delhi
Appearances by the Advocates and pleadings for the same
Final Order from NCLT
Recovery of Financial and Operational debt from the Debtors

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    Are you one among the numerous aggrieved entities in Delhi who are haunted by the nagging problem of overdue debts and searching for insolvency consultants in Delhi?

    As economies expand, the businesses have become more and more dependent on a balance between credit & loan, the problem arises when this equation is impacted. The problem of bad debt keeps growing with time but then, the solutions also are at hand, if you look for them!

    We have an excellent team of insolvency consultants in Delhi that can decode the intricacies of Insolvency and simplify its legal & regulatory complexities with unmatched dedication!

    As a financial or operational creditor, the best tool that can provide you relief in the shortest period is Insolvency and Bankruptcy Code, 2016, (IBC).

    You can avail the services of our insolvency consultants in Delhi who have tons of experience in this field and have catered to 90+ clients successfully. Our team’s steadfast commitment and professional fairness has helped us create a niche for ourselves and led to forging a long-lasting relationship with all our clients.

    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)

    Our exemplary team of insolvency consultants in Delhi extends steadfast commitment along with complete dedication in providing solace to entities suffering from overdue debt.

    Our vision is to constantly aspire to comprehend the clients’ circumstances and requirements and dispense reliable, honest & thoroughgoing legal advice accordingly.

    Recovery Of Debt Services That We Offer In Delhi:

    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).

    I) Admit the application and communicate such decision to the operational creditor and 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.

    Document Required

    Documents Required For Recovery Of Financial And Operational Debt Through Insolvency

    Demand Notice (form 3 and form 4 – IBBI Rules)
    Company’s Ledger Account
    Copy of the Invoices showing proof of transactions between the two parties
    Bank Statements of the Operational/ Financial Creditor
    Affidavit by the Operational creditor Section 9 (3) (b) –IBBI Rules
    Acknowledgement of Transaction between 2 parties
    Copy of the Emails exchanged between 2 parties
    Copy of the Legal Notice served by the Operational/ Financial Creditor
    Affidavit – Bank Certificate – (Section 9 of IBBI Rules) (not mandatory)

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      A Comparative Chart Of All Options

      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.

       

      Alternately Call our Legal Expert Now For Free Consultation at 09599653306

      Frequently Asked Questions on Recovery of Shares

      Both financial and operational creditors can apply for insolvency against a corporate debtor, if the overdue amount is Rs one lakh or more. Banks, Financial Institutions, Homebuyers, Enterprise, Corporate Entity or  Company can approach under Section 7 and Manufacturers, Traders, Employees etc. can approach under Section 9 of the Insolvency and Bankruptcy Code, 2016 for recovery of overdue debt.

      The creditor shall have to establish that:

      • a default has occurred;
      • the debtor owes the debt; and,
      • the debt had been legally assigned to the debtor and transferred.

      The name of the resolution professional also needs to be proposed along with the application.

      IBC 2016 mandates the limitation period of three years from the date on which the debt was payable by the debtor to the creditor. In the case of B.K Educational Services vs Parag Gupta and Associates, 2017, it has been held that the Limitation Act, 1963 will apply to applications made under Section 7 and Section 9 of IBC, 2016. It has been reiterated through this Judgement that IBC proceedings shall not be initiated based on time-barred claims.

      When the liquidation of a company occurs, a liquidator is appointed by the creditors in the meeting, to work towards the liquidation process. The IBC grants immense power to the liquidator, as the execution of the entire process rests on his shoulders.

      There is a ‘waterfall mechanism’ as to the priority of claimants specified by the Code, and the debt shall be returned accordingly.

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