Introduction to Prospect Legal

Prospect Legal is a premier law firm with 15+ years of expertise in corporate litigation, insolvency, and dispute resolution. Our seasoned team of attorneys specializes in guiding financial creditors through the complexities of the Insolvency and Bankruptcy Code (IBC), 2016, ensuring seamless filing and resolution of insolvency petitions before the National Company Law Tribunal (NCLT). With a proven track record of securing favorable outcomes in high-stakes cases, we combine legal precision with strategic insights to protect your financial interests.

Where You Can Find Remedies?

The National Company Law Tribunal (NCLT) is the primary forum for filing insolvency petitions under Section 7 of the IBC. Empowered to admit cases, appoint resolution professionals, and oversee the Corporate Insolvency Resolution Process (CIRP), NCLT ensures timely resolution of defaults exceeding ₹1 crore.

Facing a corporate default? Contact Prospect Legal to initiate insolvency proceedings and recover your dues efficiently.

📞 Call us at 7000-12-7225

Understanding the Insolvency Petition Process

Step 1: Pre-Filing Requirements

1. Verify the Debt: Confirm the existence of a default (₹1 crore+ individually or jointly).
2. Issue Demand Notice: Serve a 10-day repayment notice to the corporate debtor.
3. Prepare Documentation: Gather loan agreements, default evidence, and security records.

Step 2: Filing the Petition

1. Draft the Petition: Submit Form 1 under IBC Rules, 2016, with NCLT.
2. NCLT Scrutiny: The tribunal verifies the application’s completeness and default proof.
3. Admission: If satisfied, NCLT admits the case, imposes a moratorium, and appoints a resolution professional.

Step 3: CIRP Implementation

1. Committee of Creditors (CoC): Financial creditors form the CoC to evaluate resolution plans.
2. Resolution/Liquidation: Approve a viable plan within 330 days or liquidate assets under Section 53.

Legal Protection Under Key Provisions

Section 7 of the IBC: Financial Creditor Rights

• When Can a Claim Be Filed?
  • On default of ₹1 crore+ (individual/jointly).
  • If the debt is backed by legally enforceable documents (e.g., loan agreements).
  • Post-issuance of a 10-day unpaid demand notice.

Section 60 of the IBC: NCLT’s Adjudicatory Powers

• Powers of the Adjudicating Authority (NCLT):
  • Admit/reject insolvency petitions based on merit.
  • Stay legal proceedings against the debtor during moratorium.
  • Approve resolution plans or liquidation orders.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

• Case Evaluation: Analyze debt agreements, default evidence, and security interests.
• Legal Grounds: Identify eligibility under Section 7 and assess risks.
• Financial Assessment: Quantify default amount and recovery prospects.
• Alternate Remedies: Advise on OTS, SARFAESI, or litigation trade-offs.

Step 2: Legal Documentation & Filing

• Draft Petition: Prepare Form 1 with affidavits, default proof, and demand notices.
• Evidence Compilation: Secure bank statements, audit reports, and board resolutions.
• NCLT Compliance: Ensure adherence to IBC procedural rules for swift admission.
• Jurisdiction Filing: Submit to the correct NCLT bench based on debtor’s registered office.

Step 3: Compliance & Negotiations

• Statutory Compliance: File claims with the resolution professional and attend CoC meetings.
• Settlement Talks: Negotiate with debtors for pre-admission settlements.
• Pre-Trial Hearings: Represent clients in NCLT proceedings for case admission.
• Strategic Advisory: Guide clients on voting strategies for resolution plans.

Step 4: Resolution & Final Actions

• NCLT Advocacy: Argue for admission and favorable moratorium terms.
• Appeal Management: Challenge adverse orders in NCLAT under Section 61.
• Enforcement: Monitor asset distribution in liquidation or resolution payouts.
• Post-Judgment Support: Assist with recovery execution and compliance audits.

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