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Insolvency Consultants In India

Recovery Of Financial And Operational Debt In India Through Insolvency

Drafting of Insolvency Petition
Filing of your matter with NCLT
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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    Bad debts? Overdue debts? Lots of money stuck? No hopes of recovery?

    Are you plagued with these questions and are you at a loss as to how to recover your due from a corporate debtor?

    We are a consultancy firm par excellence with a solid infrastructural base, offering a myriad of legal services. We very well understand the woes of creditors who have to chase debtors without any relief!

    If you are on the lookout for a conclusive end to your sufferings, economic as well as mental, we are the solution! We have a team of outstanding insolvency consultants in India which can assist you in regaining the overdue debt in the fastest legal way.

    If you are a financial creditor or an operational creditor, and are put up against a corporate debtor, who owes you one lakh rupees or more, then it would help you to know that Insolvency and Bankruptcy Code, 2016 (IBC) is the best remedy.

    Our dedicated team of insolvency consultants in India works towards delivering most feasible solutions, advice and guidance. Adept in the complexities of IBC, these professionals will extend their help in the entire process of insolvency and liquidation.

    MUDS consultancy has been established with the clear mission to simplify legal and regulatory complexities with ethical dedication! Our team of insolvency consultants in India with its steadfast commitment & professional fairness has helped us forge ahead of others. It is their untiring commitment that till date we have been successful in assisting 165+ clients in reclaiming their debt.

    Recovery Of Debt Services That We Offer In India:

    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)

    With the menace of bad loans and overdue debt growing in India, lots of companies and firms have mushroomed claiming to bring about quick results but a client should be careful while contacting them. Those entities which do not employ the best of professionals, can never deliver what they promise.

    We with our team of insolvency consultants in India have a proven track record to demonstrate our excellent performance and we operate with full ethical transparency. It is our steadfast commitment & professional fairness that has led to forging a long-lasting relationship with all our clients.

    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).

    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 operationa l 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 suitupon 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 Ca se): 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 onInsolvency Consultants In India

      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.

      Corporate IRP can be initiated by:

      • A financial creditor (individually or jointly) under Section 7 of IBC, 2016
      • An operational creditor under Section 9 of the IBC, 2016
      • The corporate debtor itself under Section 10 of the IBC, 2016.

      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.

      A corporate debtor may face liquidity if:

      • Any time during the insolvency resolution process, 75% of the creditors committee resolve to liquidate it.
      • If the creditors committee fails to finalize a resolution within the stipulated 180 days.
      • The resolution plan submitted by the committee is rejected by 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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