Introduction to Prospect Legal

Prospect Legal is a trusted legal firm with over 15+ years of expertise in handling legal cases. The firm has an excellent track record in corporate litigation, insolvency, and dispute resolution. With a team of experienced lawyers specializing in corporate and insolvency laws, Prospect Legal provides strategic legal solutions for businesses and individuals seeking to navigate complex legal proceedings.

Prospect Legal assists clients in successfully filing and resolving cases before the NCLT by offering end-to-end consultancy, from case evaluation to final resolution. Whether it is insolvency proceedings, corporate disputes, or regulatory compliance, Prospect Legal ensures a seamless legal process.

Where You Can Find Remedies?

Cases related to Pre-Packaged Insolvency Resolution (PIRP) fall under the jurisdiction of the National Company Law Tribunal (NCLT). The NCLT serves as the primary adjudicating authority for corporate insolvency resolution processes, including PIRP, under the Insolvency and Bankruptcy Code (IBC), 2016.

The NCLT has the authority to oversee insolvency proceedings, approve resolution plans, and ensure fair treatment of all stakeholders. If you are facing financial distress or need expert legal guidance on PIRP, consult with Prospect Legal to explore your legal options and secure a favorable resolution.

📞 Call us at 7000-12-7225

Understanding the PIRP Legal Process

Pre-Packaged Insolvency Resolution Process (PIRP) is a structured insolvency resolution mechanism under the IBC, introduced specifically for Micro, Small, and Medium Enterprises (MSMEs). It allows distressed companies to negotiate and submit a resolution plan before initiating formal insolvency proceedings.

Categories of PIRP:

1. Voluntary Process: Initiated by the corporate debtor (company) with the consent of financial creditors.
2. Compulsory Process: Mandated by the adjudicating authority (NCLT) in cases of severe financial distress.

Steps in PIRP:

1. Eligibility Check: The company must meet the prescribed conditions under the IBC.
2. Approval from Financial Creditors: At least 66% of financial creditors must approve the PIRP initiation.
3. Submission of Resolution Plan: The debtor submits a pre-negotiated resolution plan.
4. NCLT Approval: The tribunal reviews and approves the plan based on legal compliance and viability.
5. Implementation: The approved resolution plan is executed under the supervision of a resolution professional.

Legal Protection Under Insolvency & Bankruptcy Code (IBC)

Section 54A: When Can PIRP Be Filed?

• Available only for MSMEs as per IBC.
• The company must not have defaulted on any ongoing CIRP (Corporate Insolvency Resolution Process).
• Financial creditors must support the initiation of PIRP with a 66% voting majority.

Section 54B: Powers of the Adjudicating Authority (NCLT)

• NCLT can admit or reject PIRP applications.
• It ensures compliance with IBC guidelines and safeguards creditors’ interests.
• It has the authority to terminate PIRP if procedural violations occur.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

• Comprehensive evaluation of the company’s financial situation.
• Identification of legal grounds for PIRP.
• Advising on risks, compliance, and alternative legal remedies.

Step 2: Legal Documentation & Filing

• Drafting petitions and affidavits.
• Compiling necessary financial and legal documents.
• Filing PIRP applications before the appropriate NCLT bench.
• Ensuring adherence to procedural requirements for swift acceptance.

Step 3: Compliance & Negotiations

• Managing statutory compliances and creditor negotiations.
• Representing clients in pre-trial hearings.
• Ensuring regulatory adherence and strategic legal advisory at every stage.

Step 4: Resolution & Final Actions

• Presenting a strong case before NCLT for resolution plan approval.
• Handling appeals and counterclaims, if necessary.
• Ensuring enforcement of approved resolutions.
• Providing continued legal support for corporate compliance and financial restructuring.

For expert legal representation, reach out to Prospect Legal now.
📞 Call us at 7000-12-7225