There are many people in Delhi who are facing sleepless nights because of bad debt! Are you one such aggrieved individual or company?
If you or your company are unfortunate to have been pitched against bad debt that seems unrecoverable, you must be facing immeasurable anxiety and at the same time looking for a recoverable solution.
The biggest hurdle in recovery of bad debt is ‘ignorance’, as aggrieved entities like you are either uninformed or misled!
You should be well-informed of your rights as a creditor that can be ascertained only if you are aware of the various remedies available to you! Bad debt, imperative of whether it’s a financial debt or an operational debt, can be recovered by seeking the assistance of a capable debt recovery agency or a legal consultancy firm which can initiate a legal process
against the defaulter.
If the default value exceeds one lakh rupees, then the creditor may initiate the insolvency process under Insolvency and Bankruptcy Code, 2016.
If you are on the lookout for best bankruptcy professionals in Delhi then you should avail our services with full conviction.
MUDS consultancy is a well-reputed firm which has served thousands of clients over the years with complete dedication. Established with a motto to simplify legal and regulatory complexities with ethical dedication, we are a name to reckon with!
Our team of bankruptcy professionals in Delhi extends its services with earnest devotion, complete dedication and professionalism and this undoubtedly is the principal reason for our steadfast progress over the years.
We have the most diligent team of bankruptcy professionals in Delhi which has in-depth knowledge of the IBC, 2016, as a consequence we are capable of soliciting best course of action in cases of insolvency, bankruptcy or liquidation.
Contacting an established legal consultancy firm like ours, will ensure that you are able to recover your bad debt within a stipulated time period and in a cost-effective manner.
Our bankruptcy professionals in Delhi lay great emphasis on professional and ethical accountability and this undoubtedly has made us one of the best consultancy firms in Delhi. We have successfully closed 160+ cases related to insolvency and liquidation and will very soon cross the mark of 200!
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:
I) Admit the application and communicate such decision to the operational creditor and corporate debtor if,
II) Reject the Application and communicate such decision to the operational creditor and the corporate debtor if,
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.|
Banks, Financial Institutions, Homebuyers, Enterprise, Corporate Entity or Company, etc. fall in the category of Financial Creditors and can approach under Section 7 of the Insolvency and Bankruptcy Code, 2016 for recovery of overdue debt. Whereas, Manufacturers, Traders, Employees etc. are called Operational Creditors and they
can approach under Section 9 of the Insolvency and Bankruptcy Code, 2016 for recovery of debt.
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.
A Liquidator plays the most pivotal role in the liquidation process. He has to perform many duties in an impartial and judicious manner, in accumulating and assessing the assets of the debtor and eventually, selling them off to settle the debts of the creditors.
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.