Articles — IBC & Insolvency For suppliers, service providers, contractors, and employees who are owed money by a company that has stopped paying its debts, the Section 9 IBC application before the National Company Law Tribunal (NCLT) offers a powerful route to trigger the Corporate Insolvency Resolution Process (CIRP). However, the pathway for operational…
Articles — IBC & Insolvency When a corporate borrower defaults on a financial debt, a financial creditor’s most powerful statutory remedy under Indian law is a Section 7 IBC application before the National Company Law Tribunal (NCLT). Unlike civil recovery proceedings, this mechanism does not merely seek money — it initiates the Corporate Insolvency…
Articles — IBC & Insolvency The distinction between a financial creditor and an operational creditor is not a technical footnote in the Insolvency and Bankruptcy Code 2016 — it is the architecture upon which the entire insolvency process is built. Which category a creditor falls into determines whether they can trigger a Corporate Insolvency Resolution…
Articles — IBC & Insolvency The Corporate Insolvency Resolution Process (CIRP) is the primary mechanism under the Insolvency and Bankruptcy Code 2016 for resolving the financial distress of companies and limited liability partnerships. When a corporate debtor defaults on debts above the prescribed threshold, any eligible creditor or the debtor itself may trigger this process…
