Insolvency Professionals in Delhi

Are you one of the many person or entity in Delhi, frustrated by overdue debts? Recovery of bad debt can be a nightmare for any creditor, whether financial or operational and it is also a well-known fact that chasing or running after debtors, generally, does not bring any positive result. If you are looking for insolvency professionals in Delhi to recover your debt, your search ends here!

MUDS consultancy firm is committed to complete legal solutions, a guarantee to not only recover your debt but also save your time, energy and money. We have a team which comprises of most proficient insolvency professionals in Delhi, dedicated towards delivering most feasible solutions, counsel and guidance.

For aggrieved Creditors like you, the Insolvency and Bankruptcy Code 2016, (IBC), is the most effective tool in getting back the due amount in the shortest period. Its success lies in the fact that it is founded on the concept of ‘creditor in control’ instead of what was earlier termed as ‘debtor in possession’.

Our exemplary team of insolvency professionals in Delhi simplify the legal & regulatory complexities for our clients and take the cause to a conclusive, logical resolution. We have extended assistance to 80+ clients pan India in effectively recovering their debt and overcoming their stress!

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 accomplished team of insolvency professionals in Delhi render broad-gauged legal support, covering all aspects of Insolvency from initiation to recovery, bringing in the much needed relief to aggrieved Creditors.

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.