In today’s dynamic economy, businesses often face financial turbulence due to changing markets, operational challenges, or unforeseen crises. When those pressures mount, a structured legal path can provide clarity. The Insolvency and Bankruptcy Code (IBC) offers companies the tools to either recover or close responsibly. With tailored IBC services, businesses can act decisively to protect their interests.
Proactive Relief Through Distressed Asset Management
Identifying and managing non-performing assets is a crucial first step toward stabilising a struggling business. Distressed Asset Management allows companies to recover value from assets that no longer support their goals—such as bad debts, idle inventory, or outdated infrastructure. When handled properly, this process can create space for financial recovery or better prepare a business for exit.
Responsible Closure with Company Liquidation Services
If operations become unsustainable, shutting down in a legally compliant way is essential. Company Liquidation Services help guide companies through the process of dissolving business affairs. From selling off assets and repaying creditors to handling statutory requirements, professional liquidation ensures a fair and lawful closure for all parties involved.
Rebuilding Through Corporate Insolvency Resolution
Some businesses have the capacity to recover but need a fresh financial start. Corporate Insolvency Resolution allows for restructuring of liabilities, renegotiation with creditors, and operational reorganisation. Under the IBC framework, this resolution process gives businesses a second chance while protecting the rights of stakeholders.
Staying Compliant with Bankruptcy Legal Assistance
Navigating bankruptcy procedures involves complex legal requirements and tight deadlines. Bankruptcy Legal Assistance ensures businesses meet all legal obligations, file correct documents, and maintain transparency during tribunal proceedings. This legal support reduces the risk of non-compliance and protects the company’s reputation.
Conclusion:
Whether your business needs to restructure or shut down, expert IBC services provide the clarity and legal foundation necessary to move forward. With the right guidance, companies can navigate financial distress with confidence and control.
With the advent of insolvency and bankruptcy code, every business should take ahead the initiative to manage insolvency.
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Since then, the Modi government is working towards recovering the loans and stabilizing the banks.
One such major step was the Insolvency and Bankruptcy Code (IBC) passed in 2016.
Broadly two methods are seen- Resolution and Liquidation.
Broadly, the IBC has been much effective than any of the previous loan recovery mechanisms like Debt Recovery Tribunals, Corporate Debt Restructuring Scheme, Joint Lenders’ Forum, S4A, etc.
The quarterly newsletter released by the Insolvency and Bankruptcy Board of India for the quarter ending on 30th September shows a great detail about the work going on under IBC.
Operational Creditors are those who have lent to the defaulting company for covering operational expenses like salaries, dues, purchasing of raw materials, inventory management and sales.
The amendment to the Insolvency and Bankruptcy Code, 2016, (“IBC”) dated March 13, 2020, deemed to be in effect from December 28, 2019 (“IBC Amendment”), provides relief to homebuyers by considering homebuyers as ‘financial creditors’ and allowing them to initiate the corporate insolvency resolution process (“CIRP”) under the IBC against the developer.
This article analyses the remedies available to homebuyers against the developers of a real estate project in context of the aforesaid IBC Amendment and vis-à-vis the Real Estate (Regulation and Development Act), 2016.Precedence of proceedings under RERA and the IBCWhile the homebuyers may initiate CIRP against the developers, in view of the IBC Amendment, however, CIRP may be initiated only if the application is filed jointly by not less than: (a) 100 (one hundred); or (b) 10% (ten percent) of the total number, of such allottees under the same real estate project, whichever is less.Further, when any proceedings are initiated and subsequently admitted under the IBC, then the adjudication process envisaged under Real Estate (Regulation and Development Act), 2016 (“RERA”) may be done away with.
However, the application as filed by the allottee before the National Company Law Tribunal (“Tribunal”) under the IBC (“Application”) should meet the eligibility criteria as laid down under the IBC and the allottee must be able to prove that the developer has defaulted[1].
The allottees should initially make out an application demonstrating a “default” which shall include amounts due and payable to the allottee.Tatva Legal, Hyderabad has an experienced team of lawyers who, amongst other services, advise on transactions covering multiple practice areas such as insolvency and bankruptcy, real estate transactions including RERA compliance and title due diligence, and legal advisory for financing related activities specific to real estate projects.
If you have decided to file for bankruptcy protection, need lawyers in India who experts in insolvency and bankruptcy law, the Consult with Ahlawat & Associates, who is one of the best Legal firms in India.
