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AHLAWAT & ASSOCIATES ADVOCATES
Procedure of Going With The Insolvency and Bankruptcy Code https://www.ahlawatassociates.com/area-of-practice/insolvencyand-bankruptcy/
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All the proceedings related to insolvency and bankruptcy in India are processed according to the insolvency and bankruptcy code of 2016. The first provision that the act provides is for the insolvency of the debtor.
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The first step here is to make the application to NCLT, where you need to follow the procedure and the format that has been prescribed by the act itself.
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Issue As the application is accepted by the board a CRIT will be formed and that will be taking charge of the company of the debtor or the ventures if they are many in numbers. Here, you will be guided well by the bankruptcy law lawyer whom you will be appointing.
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The following things will not be possible by any means No transfer of asset No enforcement regarding any security issue
No recovery of property by the owner No suspension of goods supply
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After the submission of the report from the CRIT, a COC or a committee of the creditors will be formed and they will be given the charge for 30 days for generating a report. After these 30 days, you can appoint bankruptcy law lawyer who will be the professional dealing with the resolution part.
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Procedure and Provision of Bankruptcy Once the resolutions taken in the due course fails, for any reasons that accomplish the sections of insolvency and bankruptcy code, the debtor finds the provision to go for the bankruptcy provision to the jury.
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1. The application has to be made and that has to be attached with the documents, which is in accordance with the insolvency and bankruptcy law. 2. Either the debtor or the creditor can pay the fees that have been sentenced in the provision of the act. 3. The declaration of bankruptcy is usually made within 14 days from the proceeding of the application. 4. The trustee will also be following definite parts that have been mentioned in the sections of the bankruptcy and insolvency act, after which he can be released from the job.
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Conclusion This is the complete procedure and the provision that has been mentioned in the bankruptcy law in India for insolvency and bankruptcy. You can get in touch with any of the bankruptcy law lawyers for a detailed overview of the same. The complete procedure needs to be finished within 180 days and the deadline can be exceeded by a maximum of 90 days.
Resource: https://conceptbb.com/bankruptcy-code/
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