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NCLT PRACTICE

EXPERT ADVISORY ON NCLT AND COMMERCIAL MATTERS

Khurana & Khurana advises Indian and international clients on a wide range of contentious and non-contentious commercial matters, including NCLT, IBC Code, and other commercial laws. The NCLT, established under the Companies Act, 2013, replaces the Company Law Board as a quasi-judicial authority to resolve corporate civil disputes. With powers and procedures akin to a Court of Law, NCLT ensures clarity and enforcement of laws, particularly under the Insolvency and Bankruptcy Code (IBC).

MAJOR FUNCTIONS OF NCLT

  • Registration of Companies

  • Transfer of Shares

  • Deposits

  • Power to Investigate

  • Freezing Assets of a Company

  • Converting Public Limited to Private Limited Company

ADVISORY ON INSOLVENCY AND BANKRUPTCY CODE (IBC)

At Khurana & Khurana, we provide expert advisories on corporate debts, insolvency crises, and resolution strategies under the IBC. The principles of corporate insolvency include:

  1. Reviving financially distressed companies.

  2. Maximizing creditor returns if revival is unfeasible.

  3. Ensuring fair prioritization and distribution of assets.

  4. Identifying failure causes and holding mismanagement accountable.

  5. External asset control, avoiding fraudulent transactions, and pursuing dissolution or winding up as required.

STRUCTURED INSOLVENCY RESOLUTION PROCESS FOR FINANCIAL CREDITORS

The insolvency resolution process begins when a financial creditor files an application with the National Company Law Tribunal (NCLT) against a corporate debtor for unpaid debt. The application must include proof of default and a proposed interim resolution professional. The NCLT verifies the default within 14 days using records from regulated information utilities or other sources approved by the Insolvency and Bankruptcy Board of India. Once satisfied, the NCLT admits the application, ensuring a streamlined process and preventing misuse through delay tactics.

LIQUIDATION UNDER THE IBC:
KEY TRIGGERS AND PROCESS

Liquidation involves winding up a corporate debtor's affairs under the Insolvency and Bankruptcy Code. It occurs when (a) no resolution plan meets Section 30(2) criteria, (b) no plan is received within the resolution timeframe, (c) the Committee of Creditors resolves to liquidate with a 75% majority, or (d) the debtor violates the resolution plan. Upon a liquidation order, a moratorium halts new or ongoing legal proceedings, while the liquidator may initiate actions with adjudicating authority approval. Officers and employees are discharged unless operations continue.

COMPREHENSIVE LEGAL SERVICES FOR CORPORATE AND INSOLVENCY MATTERS

At Khurana & Khurana, our expert team specializes in matters under the Companies Act and Insolvency & Bankruptcy Code (IBC) before NCLT. We offer services including company incorporation, corporate restructuring, drafting commercial agreements (franchise, agency, joint ventures), and managing complex insolvency proceedings. We assist resolution applicants in acquiring distressed companies and creditors in executing resolution plans. With expertise in cross-border restructuring, debt enforcement, and offshore lending, we support domestic and international clients across diverse restructuring and business law challenges.

Khurana & Khurana offers a line of services under Bankruptcy and insolvency laws:

  1. Consultancy in Insolvency and Bankruptcy.

  2. Advising secured and unsecured creditors on various aspects relating to claims against companies under Bankruptcy.

  3. Assisting Bankruptcy.

  4. Working in courts, tribunals including before National Company Law Tribunal (NCLT).

  5. Handling cases on behalf of liquidators and receivers.

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