There are thousands of financial and operational creditors in the country who haven’t received their dues from corporate debtors. Considering that many individuals and aggrieved companies were seeking a resolution to their financial difficulties, the Government of India introduced the Insolvency and Bankruptcy Code in 2015 that was finally implemented in 2016.
This code is an attempt to develop a unified process to deal with insolvency in the country. It seeks to ensure that all restructuring and insolvency decisions of corporate entities, partnership companies and individuals are carried out within a fixed time frame for optimization of value of possessions of such entities.
If a financial institution, a real-estate agency, or a debtor becomes insolvent or is not capable of paying his debt and also meets the criteria stated in the sub-section, the debtor or a creditor will be allowed to apply for a fresh start as per Section 80 of IBC.
For small entities, the insolvency professionals in Delhi will submit an application to the DRT (Debt Recovery Tribunal) for starting the insolvency resolution process. An insolvency resolution professional will be appointed to begin the investigation. The IRP will examine and make a list of all entitled within 180 days of filing the application.
Once this period ends, the Adjudicating Authority passes an order on releasing the debtor from the entitled debts and allows the debtor to start again, financially.
Insolvency professional is the interim resolution expert recommended by the insolvency applicant and chosen by the Adjudicating Authority to handle the matter of the corporate debtor. The insolvency resolution professional assumes charge of all the proceedings right from his date of appointment as a resolution expert by Committee of Creditors (COC).
Here’s what insolvency professionals do:
Insolvency professionals in Delhi recommend various procedures that creditors can undertake in order to recover their debts:
Get in touch with the best insolvency professionals to file you matter with NCLT and recover your debts.
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