The Insolvency and Bankruptcy Code, 2016 is the Bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and Bankruptcy. The registered IP acts as (Interim Resolution Professional) IRP until approved by the Committee of Creditors (CoC) and acts as Resolution Professional throughout the CIRP period and acts as Liquidator in the Liquidation process and Voluntary Liquidation Process.
We provide services to Financial Creditors, Operational Creditors and other stakeholders to act as IRPs for initiating and implementing Corporate Insolvency Resolution Process ('CIRP') as specified under the Insolvency & Bankruptcy Code, 2016.
We provide all services as a Liquidator as specified under the Insolvency & Bankruptcy Code, 2016 such as verification of claims of creditors, custody and control of the assets, preserve and protect assets of the company, carry out liquidation for the benefits of all stakeholders.
(i) WHO IS AN INSOLVENCY PROFESSIONAL?
An Insolvency Professional is a person enrolled as a member of an insolvency professional agency and registered with the Board.
Functions and obligations of insolvency professionals.
(1) Where any insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, it shall be the function of an insolvency professional to take such actions as may be necessary, in the following matters, namely:—
(a) a fresh start order process under Chapter II of Part III;
(b) individual insolvency resolution process under Chapter III of Part III;
(c) corporate insolvency resolution process under Chapter II of Part II;
(d) individual bankruptcy process under Chapter IV of Part III; and
(e) liquidation of a corporate debtor firm under Chapter III of Part II.
(2) Every insolvency professional shall abide by the following code of conduct:—
(a) to take reasonable care and diligence while performing his duties;
(b) to comply with all requirements and terms and conditions specified in the bye-laws of the insolvency professional agency of which he is a member;
(c) to allow the insolvency professional agency to inspect his records;
(d) to submit a copy of the records of every proceeding before the Adjudicating Authority to the Board as well as to the insolvency professional agency of which he is a member; and
(e) to perform his functions in such manner and subject to such conditions as may be specified.
(ii) INSOLVENCY RESOLUTION AND BANKRUPTCY CORPORATE PERSONS
- CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP)
The Corporate insolvency resolution process (IRP) is a one under the Insolvency and Bankruptcy Code, 2016, where the National Company Law Tribunal (NCLT) initiates a corporate insolvency resolution process (CIRP) when a company defaults on making payment to creditors.
- LIQUIDATION PROCESS
Company Liquidation Process and Procedure. Liquidation is a process through which a company which is running is shut down and its existence comes to an end. This often happens when the companies are unable to pay its creditors and hence need to sell off its assets to pay of them.
- FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
The Insolvency and Bankruptcy Code is a masterpiece legislation crafted keeping into account the needs and requirements of the present time. The Insolvency and Bankruptcy code catered to serve the specified persons enshrines within its ambit various processes which are applicable to the target section based on their eligibility norms.
On this note, the Insolvency and Bankruptcy Code 2016 imbibes within its horizon Fast Track Corporate Insolvency Resolution Process (FTCIRP). The detailed provisions of the fast-track corporate resolution process are stated in section 55 to 58 under chapter IV of Part II of the code.
An application for initiating the fast track corporate insolvency resolution process can be made only by a specified category of corporate debtors. As the name highlights, the timeline for the conclusion of fast-track insolvency process is 90 days to be counted from the insolvency commencement date. The time lag can be extended be extended by the concerned Adjudicating Authority only once for a maximum duration of 45 days.
- VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
Section 59(1) of the Insolvency and Bankruptcy Code explains that, a corporate person who is intending to liquidate it voluntarily and has not committed any default may initiate voluntary liquidation proceedings under the provisions of this chapter.
(iii) INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
- FRESH START PROCESS
The objective of the Fresh Start process is to enable debtors who fall below certain asset- and income-based thresholds to get their debts waived through a streamlined and time-bound adjudication process. The process has the potential to be extremely effective in waiving debts of people trapped in a debt cycle.
- INSOLVENCY RESOLUTION PROCESS
The insolvency resolution process (IRP) is a one under the Insolvency and Bankruptcy Code, 2016, where the Debt Recovery Tribunal (DRT) initiates a insolvency resolution process (IRP) when an individual or a Partnership Firm company defaults on making payment to creditors.
- BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.