Bankruptcy, Insolvency & Recovery Laws: Navigating Financial Distress with Expertise at Panwar and Associates

Financial distress can strike businesses and individuals alike, presenting complex legal challenges that demand specialized expertise. At Panwar and Associates, we offer comprehensive legal services in Bankruptcy, Insolvency, and Debt Recovery Laws, providing strategic guidance and robust representation to creditors, corporate debtors, and individuals navigating these intricate landscapes.

Our goal is to deliver effective and timely solutions, whether it’s maximizing asset recovery for creditors or facilitating a structured path to resolution or revival for debtors, all while upholding the principles of fairness and legal compliance.

The Indian Insolvency & Bankruptcy Framework:

India’s insolvency regime has undergone a significant transformation with the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC). The IBC consolidates and amends laws relating to reorganization and insolvency resolution in a time-bound manner, aiming to maximize asset value, promote entrepreneurship, and balance the interests of all stakeholders.

Beyond the IBC, several other laws play a crucial role in debt recovery, ensuring a comprehensive legal ecosystem for financial resolution.

Our Services in Bankruptcy, Insolvency & Recovery Laws:

At Panwar and Associates, we advise and represent clients across the full spectrum of insolvency and debt recovery matters, including:

I. Insolvency & Bankruptcy Code (IBC), 2016

The IBC provides a unified framework for the insolvency and bankruptcy of corporate persons, partnership firms, and individuals.

• For Creditors (Financial & Operational):

  • Initiating Corporate Insolvency Resolution Process (CIRP) against defaulting corporate debtors.
  • Filing and pursuing claims before the Interim Resolution Professional (IRP)/Resolution Professional (RP).
  • Representation in the Committee of Creditors (CoC) and actively participating in resolution plan discussions.
  • Challenging or defending resolution plans.
  • Representing creditors in liquidation proceedings.
  • Seeking initiation of insolvency proceedings against individuals and partnership firms.

• For Corporate Debtors:

  • Advising on pre-insolvency strategies and managing financial distress.
  • Assisting in filing voluntary insolvency applications.
  • Navigating the CIRP, cooperating with the IRP/RP, and managing the company during the moratorium period.
  • Assisting in the preparation and submission of resolution plans.
  • Representing the corporate debtor in various stages of the insolvency process before the Adjudicating Authority.

• Liquidation Proceedings:

  • Advising on the legal implications of liquidation.
  • Representing stakeholders in liquidation processes, including realization and distribution of assets.

• Pre-packaged Insolvency Resolution Process (PIRP):

  • Advising and assisting eligible MSMEs (Micro, Small & Medium Enterprises) in utilizing the pre-packaged insolvency framework for faster resolution.

Adjudicating Authorities under IBC: We represent clients before the relevant adjudicating authorities:

• National Company Law Tribunal (NCLT): For corporate insolvency resolution and liquidation.
• National Company Law Appellate Tribunal (NCLAT): For appeals against NCLT orders.
• Debt Recovery Tribunals (DRTs): For insolvency resolution and bankruptcy for individuals and partnership firms (non-corporate).
• Debt Recovery Appellate Tribunals (DRATs): For appeals against DRT orders.

II. Debt Recovery Laws (Pre-IBC Framework & Concurrent Remedies)

While IBC streamlines insolvency, other acts remain crucial for debt recovery, particularly for banks and financial institutions.

• Recovery of Debts and Bankruptcy Act (RDB Act), 1993:

  • Representing banks and financial institutions in filing Original Applications (OAs) before the Debt Recovery Tribunals (DRTs) for the expeditious recovery of debts.
  • Defending borrowers/guarantors against OAs filed by financial institutions.
  • Handling appeals before the Debt Recovery Appellate Tribunals (DRATs).

• Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002:

  • Advising secured creditors (banks and financial institutions) on enforcing security interests without court intervention, including taking possession of secured assets.
  • Assisting with the issuance of demand notices (Section 13(2)) and possession notices (Section 13(4)).
  • Representing borrowers/guarantors in challenging actions taken by secured creditors under the SARFAESI Act before the DRTs.
  • Advising on asset reconstruction and securitization mechanisms.

• Negotiable Instruments Act, 1881:

  • Initiating and defending proceedings related to cheque dishonour (Section 138), a common tool for debt recovery for operational creditors.

• Companies Act, 2013:

  • Handling winding-up petitions and other company law aspects related to financial distress, particularly in cases not covered by IBC or where the company law provisions are still applicable.

III. Strategic Legal Counsel

Beyond litigation, we provide proactive legal advice to:

• Creditors: Develop robust recovery strategies, conduct due diligence on debtors, and draft enforceable security documents.
• Debtors: Structure debt restructuring plans, negotiate with creditors, and explore options for corporate turnaround or individual bankruptcy.
• Insolvency Professionals: Provide legal support and guidance on procedural and substantive legal issues arising during CIRP or liquidation.

Why Panwar and Associates?

• Deep Domain Knowledge: Our team possesses in-depth knowledge of India’s complex and evolving insolvency and debt recovery laws.
• Strategic & Practical Approach: We combine legal acumen with practical business understanding to devise solutions that are both legally sound and commercially viable.
• Results-Oriented: We are committed to achieving the best possible outcomes for our clients, whether it’s maximizing recovery, securing assets, or facilitating a fresh start.
• Expeditious Resolution: We understand the time-sensitive nature of financial distress and work diligently to expedite processes and achieve timely resolutions.
• Comprehensive Representation: From the initial assessment to representation before NCLT, NCLAT, DRTs, DRATs, and other forums, we provide seamless and integrated legal support.

If you are facing challenges related to debt, insolvency, or bankruptcy, contact Panwar and Associates. Our expertise can guide you through these demanding times, ensuring your legal rights are protected and your financial future is secured.