Insolvency Professionals in Delhi

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.

Who is insolvency professional?

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 helps in creating as well as releasing any public statement with respect to the filing of CIRP as governed by the Code.
• He will collect information about the assets, liabilities and businesses of the debtor in order to establish the financial standing of the commercial sector.
• It is the responsibility of the resolution professional to obtain and collect all the claims made by the creditors including the financial creditors, operational creditors, employees, and workers.
• The IRP should verify all the claims with corresponding documents and evidence. In addition, he should assess the worth of all the claims after verifying all the documents
• The IRP shall prepare a list of all the creditors and produce it before the Adjudicating Authority.
• He is also required to form a committee of creditors and hold their first meeting with due notice, relevant contents and supervise voting.
• The IRP shall also monitor the resources of corporate debtors and supervise respective actions. The responsibilities also include filling collected information with the information utility, if required.
• The IRP is also liable to take charge and custody of the possessions of the corporate debtor.
• The IRP can ask the supporters or any other person from corporate debtor’s management to assist with the details required to deal with the matters of the debtor.