Insolvency & Bankruptcy

In detail:

The Firm has a robust Insolvency & Bankruptcy practice, advising and representing financial creditors, operational creditors, and other stakeholders in complex insolvency and restructuring matters. With regular appearances before the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT), the Firm handles high-value and time-sensitive proceedings under the Insolvency and Bankruptcy Code, 2016.

The practice is focused on protecting creditor interests, maximising value, and navigating distressed situations with strategic precision. The Firm is routinely engaged in matters involving corporate insolvency resolution, liquidation, and restructuring, often in conjunction with parallel recovery and enforcement actions.

Scope of Practice

Corporate Insolvency Resolution Process (CIRP)
Representation of financial and operational creditors in initiating insolvency proceedings, filing applications under Sections 7, 9, and 10 of the Insolvency and Bankruptcy Code, 2016, and participation throughout the resolution process.

Committee of Creditors (CoC) Advisory
Advising creditors on voting strategy, resolution plans, and commercial decision-making within the CoC framework.

Resolution Applicants
Assisting investors and resolution applicants in evaluating distressed assets, structuring bids, and navigating the resolution process.

Liquidation Proceedings
Representation in liquidation matters, including asset realisation, distribution of proceeds, and stakeholder claims.

Cross-Forum Strategy
Handling matters involving overlap with DRT, SARFAESI, arbitration, and civil proceedings, ensuring a coordinated and effective legal strategy.

Typical Legal Process & Procedure

1. Triggering Insolvency
   Insolvency proceedings are initiated upon default by filing applications before the NCLT:

• Section 7 (by financial creditors)
• Section 9 (by operational creditors)
• Section 10 (by corporate debtor)

Upon admission, a moratorium is imposed, restricting all recovery and enforcement actions against the corporate debtor.

2. Appointment of Interim Resolution Professional (IRP)
   An IRP is appointed to take control of the debtor’s management, verify claims, and manage operations during the initial phase.
3. Constitution of Committee of Creditors (CoC)
   The CoC, comprising financial creditors, is formed to take key commercial decisions, including approval of resolution plans.
4. Resolution Process

• Invitation and evaluation of resolution plans
• Negotiation and voting by CoC (requiring statutory majority)
• Approval of resolution plan by NCLT

The Firm advises clients at each stage to ensure commercially viable and legally compliant outcomes.

5. Liquidation (if resolution fails)
   In the absence of an approved resolution plan within the prescribed timeline, the company proceeds into liquidation, where assets are realised and distributed in accordance with the statutory waterfall.
6. Appellate Remedies
   Challenges to NCLT orders are pursued before the NCLAT and, where necessary, the Supreme Court of India.

Approach

The Firm adopts a value-driven, strategy-led approach to insolvency matters, balancing legal precision with commercial realities. It is particularly adept at safeguarding creditor rights, structuring resolution strategies, and managing complex, multi-stakeholder disputes.

With a deep understanding of insolvency law and its interplay with banking, finance, and dispute resolution, the Firm delivers efficient, commercially focused, and outcome-oriented solutions in distressed scenarios.