Marwal Associates

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Insolvency & Bankruptcy Proceedings (IBBI) Practice Area in India | Marwal's Associates

 

Insolvency & Bankruptcy Proceedings (IBBI) Practice Area in India | Marwal's Associates

Introduction: Why Insolvency & Bankruptcy Proceedings Demand Careful Handling

The insolvency and bankruptcy framework in India, administered under the oversight of the Insolvency and Bankruptcy Board of India (IBBI), operates on some of the tightest timelines in Indian law, and the outcome for creditors, corporate debtors, and resolution applicants often depends as much on procedural discipline as on the underlying commercial position. A claim filed late or without proper proof can be excluded from the process entirely, a resolution plan can unravel over a technical defect, and a company seeking an orderly exit through voluntary liquidation can face delay if the statutory declarations and approvals are not in order. Proceedings under the Insolvency and Bankruptcy Code, 2016 require close attention to both the substantive framework and the procedural rules that govern how the Corporate Insolvency Resolution Process, liquidation, and related matters actually function before the NCLT and NCLAT.

At Marwal's Associates, our Insolvency & Bankruptcy Proceedings (IBBI) practice provides thorough legal support across the Corporate Insolvency Resolution Process, liquidation proceedings, voluntary liquidation, creditor claim filing, resolution plan assistance, and representation before the NCLT and NCLAT.

Below is a detailed overview of the areas we handle within this practice.

1. Corporate Insolvency Resolution Process (CIRP)

CIRP is designed to operate within strict statutory timelines, and every stage — from the filing of the application to the approval or rejection of a resolution plan — carries consequences for creditors, the corporate debtor, and prospective resolution applicants.

We assist clients with the Corporate Insolvency Resolution Process (CIRP), including:

  • Advisory on the initiation of CIRP and representation for applicants seeking admission of insolvency applications before the NCLT
  • Representation for corporate debtors resisting or responding to insolvency applications
  • Advisory and assistance in the constitution and functioning of the Committee of Creditors, including voting thresholds and decision-making processes
  • Advisory to resolution applicants on the preparation, submission, and negotiation of resolution plans
  • Advisory on the role and duties of the Interim Resolution Professional and Resolution Professional during the CIRP timeline

We work to help clients navigate the CIRP process effectively, protecting their commercial interests at each stage.

2. Liquidation Proceedings

Where a resolution plan is not approved within the CIRP timeline, or where the Committee of Creditors resolves in favour of liquidation, the process shifts to realisation and distribution of the corporate debtor's assets under a distinct statutory framework.

We assist clients with Liquidation Proceedings, including:

  • Advisory on the transition from CIRP to liquidation and the appointment and role of the liquidator
  • Representation for creditors in the submission and verification of claims during liquidation
  • Advisory on the waterfall mechanism under the Insolvency and Bankruptcy Code and the priority of distribution among stakeholders
  • Representation in disputes concerning the sale of assets, valuation, and the conduct of the liquidation process
  • Advisory on the dissolution of the corporate debtor upon completion of liquidation

We work to help stakeholders protect their position and maximise recoveries within the framework governing liquidation.

3. Voluntary Liquidation

Voluntary liquidation offers solvent companies an orderly, IBBI-regulated route to wind up affairs and dissolve, but the process depends on strict compliance with declarations of solvency, member and creditor approvals, and reporting requirements at each stage.

We assist clients with Voluntary Liquidation, including:

  • Advisory on eligibility for voluntary liquidation and preparation of the declaration of solvency by the board of directors
  • Advisory and assistance with the special resolution or resolution of members required to initiate voluntary liquidation, and any requisite creditor approval
  • Assistance with the appointment of the liquidator and coordination of the reporting and compliance requirements applicable under the IBBI (Voluntary Liquidation Process) Regulations
  • Advisory on realisation and distribution of assets, settlement of claims, and closure of the company's affairs during the voluntary liquidation process
  • Advisory and assistance with the final report, dissolution application, and closure of the process before the NCLT

Our approach is aimed at helping solvent companies complete voluntary liquidation efficiently and in full compliance with the applicable regulatory framework.

4. Creditor Claim Filing

A creditor's recovery in CIRP or liquidation depends heavily on filing a claim correctly, within the applicable timeline, and with the documentary proof required for verification, and errors at this stage can materially affect the creditor's standing in the process.

We assist clients with Creditor Claim Filing, including:

  • Advisory on the classification of a creditor as financial, operational, or otherwise, and its implications for the claim filing process
  • Preparation and filing of claims before the Interim Resolution Professional, Resolution Professional, or liquidator, supported by the required documentary evidence
  • Advisory on timelines for claim submission and the consequences of delayed or defective filing
  • Representation in disputes concerning the admission, rejection, or quantum of a filed claim
  • Advisory on remedies available where a claim is wrongly rejected or admitted at a reduced value

Our approach is aimed at ensuring a creditor's claim is filed on a sound evidentiary footing and pursued effectively if disputed.

5. Resolution Plan Assistance

A resolution plan must satisfy both commercial objectives and the specific requirements of the Insolvency and Bankruptcy Code and the CIRP Regulations, and plans that fall short on compliance risk rejection even where the underlying commercial terms are sound.

We provide Resolution Plan Assistance, including:

  • Advisory to prospective resolution applicants on eligibility under Section 29A of the Insolvency and Bankruptcy Code
  • Assistance in structuring and drafting resolution plans that meet the mandatory contents prescribed under the CIRP Regulations
  • Advisory on negotiations with the Committee of Creditors and the resolution professional during the plan evaluation process
  • Representation in proceedings concerning approval, rejection, or challenge to a resolution plan before the NCLT and NCLAT
  • Advisory on implementation issues arising after approval of a resolution plan, including compliance with plan conditions and timelines

Our approach is aimed at helping resolution applicants put forward plans that are commercially sound and procedurally compliant, and at protecting a plan's integrity through to implementation.

6. Representation before NCLT & NCLAT

Insolvency and bankruptcy matters are ultimately adjudicated before the NCLT, with appeals lying to the NCLAT, and outcomes at both forums depend on precise drafting, adherence to procedural rules, and timely action within limitation.

We provide Representation before NCLT & NCLAT, including:

  • Drafting and filing of applications, petitions, and interlocutory applications arising at any stage of CIRP, liquidation, or voluntary liquidation
  • Representation in contested hearings before the NCLT on matters of admission, claim disputes, plan approval, and related applications
  • Advisory on the maintainability and limitation period applicable to a proposed appeal against an NCLT order under Section 61 of the Insolvency and Bankruptcy Code
  • Drafting and filing of appeals before the NCLAT, and representation for appellants and respondents in such appeals
  • Advisory on further appeal to the Supreme Court where a substantial question of law arises from an NCLAT order

Our approach is aimed at ensuring every filing is procedurally sound and every hearing is approached with a clear, well-prepared strategy.

Why Choose Marwal's Associates for Insolvency & Bankruptcy Matters?

  • ✅ Representation across the full CIRP lifecycle, from admission of applications to approval of resolution plans
  • ✅ Practical experience in both liquidation and voluntary liquidation proceedings
  • ✅ Careful, evidence-based handling of creditor claim filing and claim disputes
  • ✅ Focused resolution plan assistance for applicants, from eligibility to implementation
  • ✅ Precise, timeline-conscious representation before the NCLT and NCLAT
  • ✅ Practical experience representing financial creditors, operational creditors, corporate debtors, and resolution applicants alike

Frequently Asked Questions (FAQs)

Q1. Who can initiate a Corporate Insolvency Resolution Process against a company? CIRP can generally be initiated by a financial creditor, an operational creditor, or the corporate debtor itself, subject to meeting the applicable default threshold and filing the application in the manner prescribed under the Insolvency and Bankruptcy Code.

Q2. What is the difference between liquidation and voluntary liquidation? Liquidation under the Insolvency and Bankruptcy Code typically follows a failed or unresolved CIRP and involves an insolvent corporate debtor, whereas voluntary liquidation is initiated by a solvent company's own members to wind up its affairs in an orderly manner, and is governed by a distinct set of IBBI regulations.

Q3. Within what timeline must a creditor file a claim in CIRP or liquidation? Creditors are generally required to file claims within the timeline specified in the public announcement made by the Interim Resolution Professional or liquidator, and claims filed late may still be considered in certain circumstances, though timely filing is strongly advisable to protect a creditor's position.

Q4. What is Section 29A and why does it matter for resolution applicants? Section 29A of the Insolvency and Bankruptcy Code sets out categories of persons who are ineligible to submit a resolution plan, including certain persons connected with wilful default, undischarged insolvency, or specified past conduct, and eligibility under this provision is assessed before a resolution plan can be considered.

Q5. What happens if a resolution plan is not approved within the CIRP timeline? Where no resolution plan is approved within the timeline prescribed under the Insolvency and Bankruptcy Code, and no extension is granted, the corporate debtor may be ordered into liquidation, after which its assets are realised and distributed among stakeholders in accordance with the statutory waterfall mechanism.

Q6. Within what time frame must an appeal against an NCLT order be filed before NCLAT? Appeals against NCLT orders must generally be filed within a limited period from the date of the order, subject to a further limited condonable delay in appropriate cases, making prompt advice on limitation essential once an adverse order is passed.

Get Trusted Legal Support for Insolvency & Bankruptcy Proceedings

Whether you are initiating or defending a Corporate Insolvency Resolution Process, navigating liquidation or voluntary liquidation, filing or defending a creditor's claim, preparing or evaluating a resolution plan, or appearing before the NCLT or NCLAT, the right strategy protects both the outcome you are seeking and the process by which you get there. Marwal's Associates provides complete legal support across the Corporate Insolvency Resolution Process, liquidation proceedings, voluntary liquidation, creditor claim filing, resolution plan assistance, and representation before the NCLT and NCLAT.

ЁЯУЮ Contact us today for a consultation on Insolvency & Bankruptcy Proceedings.

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Insolvency and bankruptcy proceedings are governed by applicable statutes, regulations, IBBI regulations, and case-specific facts; please consult with a qualified advocate before taking any legal action.