The Insolvency and Bankruptcy Code, 2016 (IBC) governs corporate reorganization. Petitions are adjudicated before NCLT benches as detailed on NCLT Portals and IBBI Portals.
The minimum default threshold for initiating CIRP under Section 4 of the IBC is Rs. 1 Crore.
Section 240A of the IBC exempts registered MSMEs from Section 29A disqualifications, allowing MSME promoters to submit resolution plans to retain control of their enterprise.
Under Mobilox Innovations v. Kirusa Software (2018), a pre-existing dispute includes any bona fide written communication regarding deficiency in goods/services or invoice disputes raised before receipt of Section 8 demand notice.
Under Section 7(5), NCLT is mandated to admit or reject an application within 14 days of receipt.
Upon CIRP admission, NCLT issues a moratorium under Section 14 prohibiting institution or continuation of suits, foreclosure of security interests, or transfer of corporate assets.
Financial creditors can file joint Section 7 petitions meeting minimum threshold numbers; operational creditors file individually under Section 9.
PPIRP under Chapter III-A of IBC provides an expedited, debtor-in-possession resolution framework for MSMEs with a default threshold between Rs. 10 Lakhs and Rs. 1 Crore.
Appeals against NCLT orders lie before the National Company Law Appellate Tribunal (NCLAT) within 30 days under Section 61 of the IBC.
Structuring bank compromise proposals to avoid NCLT insolvency proceedings.
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