Introduction to Prospect Legal

Prospect Legal is a distinguished law firm with 15+ years of expertise in corporate restructuring and litigation. Our team of legal professionals specializes in guiding businesses through complex legal challenges, including financial distress, mergers, acquisitions, and dispute resolution. We assist corporations in navigating regulatory frameworks, ensuring compliance, and securing favorable legal outcomes.

Where You Can Find Remedies?

Corporate restructuring and litigation cases are primarily handled by NCLT (National Company Law Tribunal) under the Companies Act, 2013, and the Insolvency and Bankruptcy Code (IBC), 2016. In certain cases, High Courts, Supreme Court, and Arbitration Tribunals also play a crucial role.

If your business is facing legal disputes or restructuring challenges, contact Prospect Legal for expert legal consultation and tailored solutions.

📞 Call us at 7000-12-7225

Understanding the Corporate Restructuring & Litigation Process

Corporate restructuring and litigation can be categorized into two key processes:

1. Voluntary Process (Initiated by individuals/companies)

• A company proactively undergoes restructuring to improve financial stability.
• Corporate disputes are settled through negotiation or mediation.
• Strategic legal filings are made to ensure compliance and avoid litigation.

2. Compulsory Process (Court-mandated or legally enforced)

• Insolvency proceedings are initiated by creditors or regulatory bodies.
• Courts enforce restructuring through mergers, acquisitions, or asset sales.
• Litigation arises due to shareholder disputes, contract breaches, or regulatory violations.

Legal Protection Under Relevant Sections of Law

The Companies Act, 2013 and the Insolvency and Bankruptcy Code (IBC), 2016 provide key legal provisions for corporate restructuring and litigation. Below are the specific sections governing these processes:

Section 230-232 of the Companies Act, 2013: Corporate Restructuring & Amalgamation

A claim can be filed under the following conditions:

• Section 230: Allows companies to file for compromise or arrangement with creditors and shareholders.
• Section 231: Empowers the National Company Law Tribunal (NCLT) to enforce and supervise approved schemes.
• Section 232: Governs mergers and amalgamations, detailing procedural requirements.

Section 7, 9, and 10 of the IBC, 2016: Insolvency & Bankruptcy Proceedings

• Section 7: Financial creditors can initiate corporate insolvency resolution processes (CIRP).
• Section 9: Operational creditors can file an insolvency application.
• Section 10: Corporate debtors can voluntarily file for insolvency.

Powers of the Adjudicating Authority (NCLT & Other Tribunals)

NCLT and other adjudicating bodies have the authority to:

• Approve corporate restructuring plans, including mergers and acquisitions.
• Settle disputes between shareholders, creditors, and directors.
• Enforce legal compliance with financial and regulatory laws.
• Oversee liquidation and debt resolution processes, ensuring fair settlements.

These provisions ensure structured and legally sound corporate restructuring and litigation processes.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Risk Assessment

• Case Evaluation: Analyze the legal and financial standing of the company.
• Regulatory Compliance Check: Assess adherence to corporate laws.
• Stakeholder Review: Identify key stakeholders and potential legal risks.
• Strategic Planning: Develop customized legal solutions for restructuring or litigation.

Step 2: Legal Documentation & Filing

• Petition Preparation: Draft and file restructuring or litigation applications.
• Mergers & Acquisitions Documentation: Prepare legal agreements for corporate transactions.
• Contractual Agreements: Ensure legally sound contracts to prevent disputes.
• Regulatory Submissions: Complete necessary filings with NCLT and other authorities.

Step 3: Compliance & Negotiations

• Inter-Corporate Dispute Resolution: Negotiate settlements to avoid litigation.
• Debt Restructuring Agreements: Engage with creditors for favorable terms.
• Regulatory Liaison: Ensure smooth communication with legal and financial regulators.
• Ongoing Legal Support: Provide assistance throughout the litigation or restructuring process.

Step 4: Resolution & Final Actions

• Court Approvals: Secure necessary legal verdicts and restructuring approvals.
• Settlement Execution: Implement agreements with creditors and stakeholders.
• Business Continuity Planning: Develop post-restructuring operational strategies.
• Post-Litigation Compliance: Ensure adherence to legal obligations after resolution.
  

📞 Call us at 7000-12-7225