Delhi is the centre of power, education, culture as well as business. Going hand in hand with India’s economic growth, Delhi has also witnessed a spurt in businesses of all kinds. Many a time it happens that these entities are unable to continue their operations smoothly, despite their best efforts and become insolvent. Overdue debts and financial liabilities start to bog them down and then the creditors seek action against them to reclaim their dues.
If you or your company is a debtor or a creditor and looking for effective means to resolve your debt problems, then Insolvency and Bankruptcy Code, 2016 is the answer. All you need to do is approach a firm that provides services of bankruptcy consultants in Delhi.
MUDS is a consultancy firm, a name to reckon with in the legal field, with an excellent track record in cases pertaining to insolvency, bankruptcy and liquidation. Our highly proficient team of bankruptcy consultants in Delhi is dedicated towards delivering most viable solutions, advice and guidance. We understand the perils of bad debt; it impacts the economic health along with aggravating physical and mental stress.
If you are running after a corporate debtor and the amount due is more than one lakh rupees, then avail our services of bankruptcy consultants in Delhi immediately. Our vision is to constantly aspire to comprehend the clients’ circumstances and requirement and dispense reliable, honest and thoroughgoing legal advice accordingly.
With 90+ successful cases of insolvency already in our catalogue, there is no doubt that we have created a niche for ourselves in bringing such cases to effective conclusion in the shortest time.
It is imperative whether you fall in the category of financial or operational creditor, or a debtor, our bankruptcy consultants in Delhi with tons of experience behind them, will bring satisfactory result. We have an impeccable reputation of being completely dedicated towards professional ethics and fairness along with being cost effective.
1. In case of initiation of Corporate Insolvency Resolution Process by Financial Creditor, it should owe the financial debt and the debt should be legally assigned to him and transferred. The Term “Financial Creditor” includes Banks, Financial Institutions, Homebuyers, Enterprise, Corporate Entity or Company (Section 7 of the IBC).
According to Sub-section (1) of the Act, the Financial Creditor either by itself or jointly with other financial creditors may file an application for initiating the Corporate Insolvency Resolution Process against a corporate debtor when a default has occurred.
The Adjudicating Authority shall within 14 days of the receipt of the application under sub-section (2), ascertain the existence of the default from the records of the information utility or on the basis of the evidence furnished by the financial creditor under sub-section (3).
Also, where the Adjudicating authority is satisfied that:
2. In case of initiation of Corporate Insolvency Resolution Process by the Operational Creditor, the Operational Creditor should owe the financial debt and the debt should be legally assigned to him and transferred. The term “Operational Creditor” includes Manufacturers, Traders, Employees (Section 9 of the IBC).
After the expiry of the period of 10 days from the date of delivery of the notice or the invoice demanding payment under (1) of section 8, if the operational creditor does not receive payment from the corporate debtor or the dispute under sub-section (2) of section 8, the operational creditor may file an application before the adjudicating authority for initiating the CIRP process.
The Adjudicating authority shall within 14 days of the receipt of the application under sub-section (2), by an order:
3. In case of the Summary Suit under Order 37 of the Code of Civil Procedure, 1908, the Creditor shall file the Summary Suit in the respective courts having jurisdiction if there is a suit upon Bills of Exchange, Hundis and Promissory Notes.
Suits in which the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant, with or without interest, arising:
4. Section 138 of the Negotiable Instruments Act, 1881 (Cheque Bounce Recovery Case): If the customer delays the payment through cheque then the seller can file a suit against the customer under Section 138 of the Negotiable Instruments Act, 1881.
Under Section 138, a legal notice is sent to the customer regarding the bouncing of the cheque and if he does not pay within 30 days, then the seller can file a suit against the customer under Section 138 of the NI Act regarding non-payment of the payment.
|Comparison Basis||Section 7 of IBC||Section 9 of IBC||Summary Suit (Order 37 of Cpc, 1908)||Section 138 of NI Act, 1881|
|Claim Amount||Minimum Amount is Rs. 1 lac||Minimum Amount is Rs. 1 lac||It is prescribed as per the Code of Civil Procedure, 1908.||It is prescribed as per the NI Act, 1881.|
|Limitation Period||It is 3 years from the date when the debt has become due.||It is 3 years from the date when the debt has become due.||The limitation is prescribed as per the||45 days is the time period for filing the case in the Concerned Court when the cheque has been bounced.|
|Total time-frame||6 months (Approx.)||6 months (Approx.)||3-4 months (Approx.)||6 months- 1 year (It can vary)|
|Type of Persons availing the Services||Homebuyers, Financial Institutions, Banks etc. (They all are termed as Financial Creditors)||Employees, Traders, Manfacturers (They all are termed as Financial Creditors)||Manfacturers, Traders, Buisnessmen and any other person dealing in goods and services.||Any person whose cheque has been bounced by the Bank due to insufficient funds on payment by the debtor.|
|Court Fees to be Paid||Rs. 25,000||Rs. 2,000||It is prescribed as per the Amount of claim.||It is prescribed as per the Amount of claim.|
Corporates Insolvency Resolution Process can be initiated by:
IBC 2016 mandates the limitation period of three years from the date on which the debt was payable by the debtor to the creditor. In the case of B.K Educational Services vs Parag Gupta and Associates, 2017, it has been held that the Limitation Act, 1963 will apply to applications made under Section 7 and Section 9 of IBC, 2016. It has been reiterated through this Judgement that IBC proceedings shall not be initiated based on time-barred claims.
The application shall be accepted by the Adjudicating Authority if:
The court fee varies in both cases, in the case of Financial Creditor filing the Insolvency Petition it is Rs. 25,000 whereas in case of Operational Creditor it is Rs. 2,000.
Thanks Muds Team for their all round support in successful delivery of services. Their approach is Client Centric and they possess the deep understanding of the Subject
Their Professional Approach blended with personal touch eases out all hassals in the Transaction.
We have been working with Muds since 4 years and their service is dependable. I highly recommend Muds in every facets of Business for the hassal free sleep.