Legal Service In IBC
It is a significant reform in the country’s economic history, primarily aimed at resolving companies, partnerships, and individuals who cannot repay their debts. The process involves resolution, which is time-bound and aims to maximize the value of the assets of the debtor. However, if the resolution process fails, the company goes into liquidation, while individuals or partnerships go into bankruptcy. The IBC has allowed financial creditors to play a vital role in the resolution process, resulting in increased investment opportunities and legal disputes between parties. The impact of the IBC extends to various industrial sectors, including real estate and steel. Lawyers have a crucial role to play in the entire insolvency process, including advising clients, drafting documents, and representing them before the adjudicating authority at each stage of the process.
Insolvency and Bankruptcy Code, 2016 Legal essentials:
- Representation of debtors or creditors in court as needed, as well as the insolvency resolution specialist.
- Give asset reconstruction companies strategic counsel and help them rebuild their businesses.
- Evaluation of a stressed company’s assets and liabilities, together with advice regarding the risk involved in acquiring the operations of stressed enterprises going through resolution.
- Assisting the Insolvency Resolution Professional (IRP) with the establishment of the Committee of Creditors, answering creditors’ questions, and engaging in joint negotiations with other parties to ensure a smooth resolution process.
- Providing full support throughout the process to the IRP/RP as needed.
- Any file before NCLT must be made in the prescribed form and include all necessary supporting documentation, according to the lawyer.
- The lawyer representing the Financial Creditor must ensure that the debt actually exists and that the application is submitted in the correct manner and format in line with the Code’s specifications.
- Also, the lawyer drafts and reviews the application that will be submitted to the NCLT.
- Between the CoC and the RP, the Legal Counsel serves as a bridge. All correspondence with the RP is first reviewed by the lawyer. Additionally, it must examine the liquidation report and make sure that it is created in accordance with all IBC and IBBI laws and regulations.
How SalahKaro helps?
- A team of lawyers and advocates is necessary because it is a law and requires several compliances with and representations before the adjudicating body.
- The knowledgeable group of attorneys, advocates, and insolvency specialists will offer their insight on IBC-related issues.
- Legal representation in courts and before arbitrators such as NCLT and NCLAT
- Assistance with IBC filings and compliances, Creating applications and notices in accordance with the legislation. Maintaining awareness of the most recent changes and providing advice as necessary.
- Starting the process of resolving bankruptcy and requesting relief before the NCLT for the benefit of clients.
- To protect client financial interests during the insolvency procedures, the team supports a calculated mix of advice and litigation.
- The IBC law is maintained in compliance through document vetting and review, court applications, and sharing among many stakeholders.
