Allottee rights and authorised representative
The Insolvency and Bankruptcy Code 2016 provides a time-bound framework for resolving insolvency of corporate debtors, individuals and partnership firms. A corporate insolvency resolution process (CIRP) is initiated on an application by a financial creditor (Section 7), an operational creditor (Section 9) or the corporate debtor itself (Section 10). Once admitted, the NCLT appoints an interim resolution professional, constitutes the committee of creditors, and the moratorium under Section 14 takes effect. The process must conclude within 330 days. AMLEGALS acts for financial creditors, operational creditors, corporate debtors, resolution applicants, and the resolution professionals in CIRP, liquidation and pre-packaged insolvency.
Parallel proceedings — including suits, arbitrations and recovery actions — are stayed by the moratorium, but secured creditors, guarantors and related parties face distinct treatment. The NCLAT hears appeals from NCLT orders; further appeal lies to the Supreme Court. AMLEGALS handles every stage, from the Section 7/9/10 application to the approval of the resolution plan, and from the liquidation process to the distribution waterfall under Section 53.
Filing or defending applications under Sections 7, 9 and 10 of the IBC before the NCLT, including pre-admission strategy on threshold, default and limitation.
Filing and verifying claims, attending and voting at committee-of-creditors meetings, and advising on the treatment of financial, operational and dissenting creditors.
Advising resolution applicants on Section 29A eligibility, plan structuring, Section 30(2) compliance and the NCLT approval process.
Advising MSMEs on the pre-packaged insolvency resolution process under Sections 54A–54P, base-plan preparation and the Swiss-challenge mechanism.
Advising stakeholders in liquidation proceedings, sale of assets as a going concern, and the distribution waterfall under Section 53.
Filing and arguing appeals before the NCLAT and special-leave petitions before the Supreme Court, including applications for stay.
The threshold for filing an application under Section 7 (financial creditor) or Section 9 (operational creditor) is a minimum default of one crore rupees, as notified by the Central Government in March 2020. The default must be established with evidence — a financial contract and record of default (Section 7) or an invoice or demand notice (Section 9).
The CIRP must be completed within 180 days from the date of admission, extendable by 90 days once. The Supreme Court in Committee of Creditors of Essar Steel v. Satish Kumar Gupta (2019) held the overall outer limit at 330 days including litigation time, though subsequent decisions have treated this as directory rather than mandatory.
A promoter is eligible to submit a resolution plan only if the promoter is not disqualified under Section 29A of the IBC. Section 29A bars, among others, wilful defaulters, persons whose accounts have been classified as NPA for one year or more, and persons who have been convicted for specified offences.
Section 14 of the IBC imposes a moratorium on the institution or continuation of suits, execution of judgments, and recovery actions against the corporate debtor. The moratorium remains in effect until the CIRP concludes with a resolution plan or liquidation order.
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