Bankruptcy Code ( IBC)
Advisory and litigation support for matters relating to oppression and mismanagement of companies, proceedings for willful default and inability to pay debt and all other connected matters before the NCLT
Frequently Asked Questions
Insolvency means a person or business is financially unable to pay its debts on time, while bankruptcy means a court has officially declared that person legally unable to repay debts. Insolvency is a financial situation that can exist on its own, even without going to court, but bankruptcy is a legal process and status that happens only after court proceedings. In India, companies can be insolvent and go through insolvency or liquidation, but they are not called bankrupt; the term bankruptcy is mainly used for individuals and partnership firms after a court order under the Insolvency and Bankruptcy Code, 2016.
An insolvency lawyer is needed when default is real or imminent—for example, when loan EMIs are overdue and creditors begin sending legal notices, demand notices, or threats of action. If you receive a Section 8 demand notice (as an operational debtor) or anticipate that a financial creditor may move the NCLT, you should not wait; early legal advice can sometimes prevent admission of insolvency proceedings altogether.
You should also hire one before filing insolvency proceedings yourself—whether as a creditor or corporate debtor—because procedural defects, wrong forum, or weak documentation can get cases dismissed at the threshold. Insolvency law is highly technical and timeline-driven; a small mistake can cost leverage, money, or control of the company.
For individuals and personal guarantors, the right time is when multiple creditor claims begin piling up. An insolvency lawyer helps assess whether resolution, settlement, or bankruptcy is the least damaging route.
You should also hire one before filing insolvency proceedings yourself—whether as a creditor or corporate debtor—because procedural defects, wrong forum, or weak documentation can get cases dismissed at the threshold. Insolvency law is highly technical and timeline-driven; a small mistake can cost leverage, money, or control of the company.
For individuals and personal guarantors, the right time is when multiple creditor claims begin piling up. An insolvency lawyer helps assess whether resolution, settlement, or bankruptcy is the least damaging route.
Insolvency proceedings against a company or LLP can be initiated by three persons: a financial creditor (such as a bank or NBFC), an operational creditor (someone owed money for goods, services, salary, or statutory dues after issuing a demand notice), or the corporate debtor itself when it has defaulted or foresees default. All such applications are filed before the NCLT and are based on the existence of a default.
For individuals and partnership firms, insolvency proceedings can be initiated by either the debtor or the creditor, and these cases are heard by the Debt Recovery Tribunal (DRT). This part of the IBC is especially relevant for personal guarantors to corporate debtors. In short, the IBC allows both creditors and debtors to trigger insolvency, depending on the nature of the debtor and the debt involved.
For individuals and partnership firms, insolvency proceedings can be initiated by either the debtor or the creditor, and these cases are heard by the Debt Recovery Tribunal (DRT). This part of the IBC is especially relevant for personal guarantors to corporate debtors. In short, the IBC allows both creditors and debtors to trigger insolvency, depending on the nature of the debtor and the debt involved.
For companies, LLPs, and other corporate persons, insolvency matters under the IBC are handled by the National Company Law Tribunal (Mumbai Bench). Pune does not have a separate NCLT bench, so all Corporate Insolvency Resolution Process (CIRP) cases from Pune are filed and heard in Mumbai.
For individuals, partnership firms, and personal guarantors, insolvency and bankruptcy matters lie before the Debt Recovery Tribunal (DRT Pune).
For individuals, partnership firms, and personal guarantors, insolvency and bankruptcy matters lie before the Debt Recovery Tribunal (DRT Pune).
For companies and LLPs, the Corporate Insolvency Resolution Process (CIRP) under the IBC is legally capped at 180 days, with a one-time extension of 90 days, making 270 days the outer limit. If no resolution plan is approved within this time, the company must go into liquidation.
For individuals and personal guarantors, the process before the DRT generally takes longer and is less predictable, often 1–3 years, depending on creditor objections and court backlog.
For individuals and personal guarantors, the process before the DRT generally takes longer and is less predictable, often 1–3 years, depending on creditor objections and court backlog.