Insolvency & Bankruptcy

The Insolvency and Bankruptcy Code, 2016 (IBC) (“Code”) was enacted to introduce a regime of reorganization and insolvency resolution in India which would function in a ‘time bound manner for maximizing the value of the assets’ of an entity undergoing the insolvency resolution process. In a short time since its inception, it has been viewed as a successful economic and legislative experiment.

The advocates at Sarvada Legal have rich and demonstrable experience in representing all stakeholders, including financial creditors, operational creditors, resolution professionals, corporate debtors, promoters and ex-employees of corporate debtors undergoing Corporate Insolvency Resolution Process (CIRP) and liquidation process. We have represented clients across multiple forums like National Company Law Tribunal (NCLT) (Delhi, Mumbai, Hyderabad, Chandigarh, Kolkata), National Company Law Appellate Tribunal (NCLAT), the Hon’ble Delhi High Court and the Hon’ble Supreme Court of India.

The insolvency and bankruptcy team at Sarvada Legal is known for providing practical and balanced advisory on insolvency related matters. They also focus on providing strategic advice on how an entity can minimize the risk of being drawn into the insolvency process for non – payment of dues to operational creditors, reviewing the documentation and the terms and conditions of borrowings made from financial creditors. Our team members also work in close coordination with several insolvency resolution professionals.

The team has rich experience in handling and advising clients on various issues of IBC, including

Pre-admission stage

• Assisting clients in filing petition as a financial creditor and / or operational creditor before the NCLTs
• Defending corporate debtors before NCLTs from demand notice and petitions filed by the creditors.

Post admission stage

• Advising resolution professional or liquidator in the entire CIRP or liquidation process, as the case may.
• Representing the resolution professional and committee of creditors before the NCLT, NCLAT and Supreme Court
• Advising a resolution applicant in due diligences, preparation of the resolution plan and other attendant advice.

Some of the issues which have been dealt with by the team in the last twelve months are:

1. Preparation of the resolution plan in real estate sector;
2. Challenging the resolution plan in the infrastructure sector being discriminatory to the operational creditors.
3. Securing stays on CIRP processes.
4. Arguing issues of liabilities of subsequent management.
5. Securing settlement agreements in the energy sector.
6. Initiating CIRP against a financial debtor under a credit facility agreement.
7. Challenged the vires of Section 240A of the IBC before the Hon’ble Supreme Court of India and High Court.
8. Defending Section 7 Applications.
9. Appeal proceedings and advisories.