Practice Areas
General information on NCLT and NCLAT proceedings, corporate insolvency under the Insolvency and Bankruptcy Code, 2016, including financial and operational creditor matters, corporate debtor proceedings, CIRP, resolution plans, liquidation and related company law and statutory proceedings in India.
Role, jurisdiction and categories of matters.
The National Company Law Tribunal is constituted under the Companies Act, 2013 and acts as the Adjudicating Authority for corporate insolvency under the IBC. Appeals lie to the National Company Law Appellate Tribunal.
Corporate insolvency framework under the IBC.
The Insolvency and Bankruptcy Code, 2016 provides a time-bound process for resolving the insolvency of corporate persons, with the Insolvency and Bankruptcy Board of India (IBBI) as the regulator.
Financial creditor proceedings and key considerations.
A financial creditor may apply under Section 7 to initiate the corporate insolvency resolution process on a default in respect of a financial debt, subject to the applicable minimum threshold.
See also: Banking, Finance, DRT & SARFAESI.
Operational creditor proceedings and statutory framework.
An operational creditor first delivers a demand notice under Section 8. If the debt is not paid and no pre-existing dispute is shown, an application may be filed under Section 9. Employee and workmen dues can also be operational debts.
See also: Labour, Employment & Service Matters.
Corporate debtor initiated insolvency proceedings.
A corporate debtor may itself apply to initiate CIRP under Section 10, subject to the conditions and approvals required by the Code.
CIRP process, moratorium under Section 14 and resolution framework.
On admission, a moratorium under Section 14 generally bars the institution or continuation of suits and proceedings against the corporate debtor, which can affect arbitration and cheque dishonour proceedings against the company. The CIRP is to be completed within the period in Section 12.
See also: Arbitration, Mediation & ADR; Cheque Dishonour & Section 138 NI Act.
Role, functions and statutory framework.
The interim resolution professional manages the corporate debtor's affairs after admission. The committee of creditors, constituted under Section 21, takes key commercial decisions during the CIRP.
Claims in CIRP and position of different stakeholders.
Creditors submit claims to the resolution professional in the prescribed forms. The treatment of different classes of stakeholders is governed by the Code and the CIRP Regulations.
Resolution plans and approval under the IBC.
A resolution plan approved by the committee of creditors goes to the Adjudicating Authority for approval under Section 31. Once approved, it binds the corporate debtor and its stakeholders.
Liquidation under the IBC and related matters.
Where no resolution plan is approved within the prescribed time, liquidation may be ordered under Section 33, and assets are distributed in the order set out in Section 53.
Company law and other matters before NCLT.
Apart from insolvency, the NCLT hears company law matters under the Companies Act, 2013, such as oppression and mismanagement petitions and schemes of arrangement.
See also: Corporate & Commercial Law.
Appeals from NCLT to NCLAT and related proceedings.
Appeals from NCLT orders under the IBC lie to the NCLAT under Section 61, and further appeals on questions of law lie to the Supreme Court under Section 62.
See also: Civil Litigation & Court Proceedings.
The legal framework includes the Insolvency and Bankruptcy Code, 2016, the Companies Act, 2013, applicable rules and regulations, and relevant judicial decisions of the NCLT, NCLAT and higher courts.
Dr. Anand Duggal is an Advocate registered to practise in India. This page contains general legal-awareness and informational material concerning NCLT, NCLAT, the Insolvency and Bankruptcy Code and related corporate law matters in India. The information is general in nature and should not be treated as legal advice, a guarantee of any outcome or a substitute for professional consultation.
