Insolvency & NCLT Practice Category

Overview of Corporate Insolvency under IBC 2016

The Insolvency and Bankruptcy Code, 2016 (IBC) revolutionized corporate debt resolution in India by introducing a creditor-in-control framework. Administered by judicial benches of the National Company Law Tribunal (NCLT) and regulated by the Insolvency and Bankruptcy Board of India (IBBI Official Portal), the code establishes a time-bound Corporate Insolvency Resolution Process (CIRP).

When financial creditors (banks/NBFCs) or operational creditors institute Section 7 or Section 9 petitions before NCLT benches, corporate debtors require strategic advocacy to prevent admission into CIRP and avoid loss of management control to Resolution Professionals.

Key Statutory Countermeasures & Defense Topics

• Section 4 Threshold & Section 7 Petitions: Challenging bank insolvency applications failing to meet the mandatory Rs. 1 Crore default threshold introduced by Central Government notification.
• Section 9 Operational Claims & Pre-Existing Disputes: Seeking mandatory dismissal under *Mobilox Innovations v. Kirusa Software (2018)* if a bona fide pre-existing dispute regarding quality or invoices was communicated prior to receipt of Section 8 demand notice.
• Section 240A MSME Resolution Plan Exemptions: Protecting MSME corporate debtors by exempting registered MSME promoters from Section 29A disqualifications, enabling them to submit resolution plans to retain enterprise ownership.
• Pre-Packaged Insolvency (PPIRP) for MSMEs: Utilizing Chapter III-A of IBC for debtor-in-possession restructuring for defaults between Rs. 10 Lakhs and Rs. 1 Crore.

Strategic NCLT Defense Advocacy

Under Founder Adv. Shakti Kumar Jain (Ex-SBI SAM Senior Officer with 35 years banking experience), our insolvency research desk analyzes corporate loan agreements, bank default dates, and Committee of Creditors (CoC) voting mechanics. We assist corporate debtors and promoters in formulating statutory defenses and compromise proposals under Section 12A of the IBC.

By leveraging statutory exemptions and pre-existing dispute jurisprudence, operating companies can safeguard corporate insolvency proceedings from malicious or premature operational creditor litigation.