Insolvency & Bankruptcy (IBC) Practice Area in India | Marwal's Associates
Insolvency & Bankruptcy (IBC) Practice Area in India | Marwal's Associates
Introduction: Why Insolvency & Bankruptcy Law Matters
The Insolvency and Bankruptcy Code, 2016 (IBC) fundamentally changed how financial distress is resolved in India, creating a time-bound, structured process for reviving viable businesses and liquidating those that cannot be saved. Whether you are a creditor trying to recover dues, a corporate debtor facing insolvency proceedings, or a resolution applicant evaluating a distressed asset, navigating the IBC requires precise procedural knowledge and strategic timing.
At Marwal's Associates, our Insolvency & Bankruptcy (IBC) practice provides comprehensive legal support across the entire insolvency lifecycle — from initiating or defending a corporate insolvency resolution process to liquidation, resolution plan advisory, and representation before the NCLT.
Below is a detailed overview of the areas we handle within this practice.
1. Corporate Insolvency Resolution Process (CIRP)
CIRP is the core mechanism under the IBC for resolving corporate insolvency within a strict statutory timeline, aimed at reviving the corporate debtor as a going concern wherever possible.
We assist clients throughout the Corporate Insolvency Resolution Process, including:
- Advisory on initiating CIRP against a defaulting corporate debtor
- Representation of corporate debtors responding to CIRP applications
- Coordination with Interim Resolution Professionals and Resolution Professionals during the process
- Representation before the Committee of Creditors on procedural and strategic matters
- Advisory on moratorium implications and ongoing business operations during CIRP
We help clients understand both the opportunities and risks at each stage of CIRP, ensuring their interests are represented effectively throughout the process.
2. Operational & Financial Creditor Petitions
Both operational and financial creditors have distinct statutory routes to initiate insolvency proceedings against a defaulting corporate debtor, each with its own evidentiary requirements.
We represent clients in Operational and Financial Creditor Petitions, including:
- Drafting and filing petitions under Section 9 (operational creditors) and Section 7 (financial creditors)
- Compilation of debt and default evidence required to satisfy admission thresholds
- Representation in disputes over pre-existing disputes raised by corporate debtors
- Defending corporate debtors against petitions filed by creditors
- Advisory on the strategic timing and structuring of creditor claims
We help creditors build well-substantiated petitions and help debtors mount effective defenses where claims are genuinely disputed.
3. Liquidation Proceedings
When resolution is not achievable within the CIRP timeline, the corporate debtor moves into liquidation, a distinct process with its own priority structure for distributing assets among stakeholders.
We assist clients with Liquidation Proceedings, including:
- Representation in liquidation order applications before the NCLT
- Advisory on the waterfall mechanism for distribution of liquidation proceeds
- Representation of creditors in submitting and verifying claims during liquidation
- Advisory to liquidators on procedural compliance under the IBC and applicable regulations
- Representation in disputes arising during the sale of liquidation assets
We help stakeholders navigate liquidation proceedings with a clear understanding of their priority and entitlement under the statutory framework.
4. Resolution Plan Advisory
A well-structured resolution plan is central to a successful CIRP outcome, requiring careful balancing of creditor interests, statutory compliance, and commercial viability.
We provide comprehensive Resolution Plan Advisory, including:
- Advisory to resolution applicants on structuring compliant resolution plans
- Due diligence support for prospective resolution applicants evaluating distressed assets
- Advisory to the Committee of Creditors on evaluating and voting on resolution plans
- Representation in disputes relating to resolution plan approval or rejection
- Post-approval implementation advisory and compliance monitoring
We help clients on both sides of the table — applicants seeking approval and creditors evaluating plans — navigate this critical stage of the insolvency process.
5. NCLT Representation
Nearly every stage of the IBC process runs through the National Company Law Tribunal, making effective representation before this forum essential to a successful outcome.
We provide dedicated NCLT Representation, including:
- Filing and prosecuting insolvency applications under the IBC
- Representation in interlocutory applications during ongoing CIRP and liquidation proceedings
- Challenges to Committee of Creditors decisions and resolution professional actions
- Representation in avoidance transaction proceedings (preferential, undervalued, fraudulent transactions)
- Appeals before NCLAT challenging NCLT orders in insolvency matters
Our familiarity with NCLT's specialized procedure allows us to represent clients efficiently at every stage, from initial filing to final resolution.
Why Choose Marwal's Associates for IBC Matters?
- ✅ End-to-end support across the entire insolvency lifecycle
- ✅ Representation for both creditors and corporate debtors
- ✅ Strong track record in Section 7 and Section 9 petitions
- ✅ Practical advisory for resolution applicants and liquidation stakeholders
- ✅ Specialized experience in NCLT and NCLAT insolvency litigation
- ✅ Strategic, time-conscious handling given the IBC's strict statutory timelines
Frequently Asked Questions (FAQs)
Q1. What is the difference between an operational creditor and a financial creditor under the IBC? An operational creditor is owed money for goods or services supplied, while a financial creditor has extended a financial debt with the commercial effect of borrowing, such as a loan; each has a distinct petition route under Sections 9 and 7 respectively.
Q2. Can a corporate debtor contest an insolvency petition filed against it? Yes, corporate debtors can contest a petition, particularly by raising a pre-existing dispute in the case of operational creditor petitions, which can be a valid ground for rejecting admission of the petition.
Q3. What happens to ongoing legal proceedings against a company once CIRP begins? Once CIRP is admitted, a moratorium under Section 14 of the IBC generally suspends the institution or continuation of suits and proceedings against the corporate debtor, subject to specific exceptions.
Q4. Who decides whether a resolution plan is approved? The Committee of Creditors evaluates and votes on resolution plans based on the required voting threshold, after which the approved plan is submitted to the NCLT for final approval.
Q5. What is the priority order for distribution of assets in liquidation? Liquidation proceeds are distributed according to the waterfall mechanism prescribed under Section 53 of the IBC, which sets out a specific priority order among secured creditors, workmen's dues, unsecured creditors, and other stakeholders.
Get Trusted Legal Support for Insolvency & Bankruptcy Matters
Insolvency proceedings move on strict timelines, and the strength of your position often depends on how early and precisely your case is prepared. Marwal's Associates provides complete legal support across CIRP, creditor petitions, liquidation, resolution plan advisory, and representation before the NCLT.
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Disclaimer: This content is for informational purposes only and does not constitute legal advice. Insolvency and bankruptcy law provisions vary based on applicable statutes, regulations, and case-specific facts; please consult with a qualified advocate before taking any legal action.