Insolvency & Bankruptcy

Overview

Our Insolvency and Bankruptcy practice advises financial creditors, operational creditors, corporate debtors, resolution applicants, and insolvency professionals on all aspects of the Insolvency and Bankruptcy Code, 2016 and the IBBI regulations made under it, across Delhi NCR and North India. We initiate and defend the Corporate Insolvency Resolution Process under Sections 7, 9, and 10, advise members of the Committee of Creditors on voting and commercial decisions, and help resolution applicants structure, value, and submit resolution plans for approval under Section 31. Our work also covers liquidation, avoidance applications for preferential, undervalued, and fraudulent transactions, personal-guarantor insolvency, pre-packaged insolvency (PPIRP) for MSMEs, and cross-border insolvency. We appear before the National Company Law Tribunal at New Delhi and Chandigarh, the NCLAT, and the higher courts, combining legal strategy with financial and operational insight to act within the IBC's strict statutory timelines.

1. 1

   Confirm the default threshold

   Confirm the unpaid operational debt exceeds the minimum default threshold under Section 4 of the IBC, 2016 (currently ₹1 crore) and the default is undisputed by the corporate debtor.

2. 2

   Issue Section 8 demand notice

   Serve a Section 8 demand notice in Form 3 or invoice with notice in Form 4 on the corporate debtor, calling for payment within 10 days. Attach the unpaid invoice and relevant supporting documents.

3. 3

   Assess the response window

   If the corporate debtor responds within 10 days with proof of payment, an existing pre-notice dispute, or evidence of repayment, IBC proceedings are not maintainable. Carefully assess any 'existence of dispute' defence (per Mobilox Innovations, 2017).

4. 4

   File Section 9 application before NCLT

   Where there is no payment or genuine pre-existing dispute, file a Section 9 application in Form 5 before the NCLT having territorial jurisdiction over the corporate debtor's registered office, with prescribed fee and Insolvency Professional consent (Form 2).

5. 5

   Admission and moratorium

   On satisfaction that the default is established and the application is complete, NCLT admits the application under Section 9(5). On admission, a moratorium under Section 14 takes effect immediately — all proceedings against the corporate debtor are stayed.

6. 6

   CIRP process

   The appointed Resolution Professional takes over, constitutes the Committee of Creditors, invites and evaluates resolution plans, and presents the approved plan to NCLT for confirmation within 180 days (extendable by 90 days, with hard cap of 330 days).

7. 7

   Resolution plan approval or liquidation

   If a resolution plan is approved by 66% of the CoC and confirmed by NCLT under Section 31, it binds all stakeholders. If no plan is approved within the timeline, NCLT orders liquidation under Section 33.

This is a general guide. For advice on your specific matter, speak to our Insolvency & Bankruptcy team.