INSOLVENCY RESOLUTION

PROCESS IN INDIA

Presented By:
Registrationwala
The Need of Insolvency Resolution

 To resolve insolvency quickly.

 To make sure that creditors

are paid properly.

 To provide a streamlined
approach to insolvency
resolution.
Conductor of Insolvency Resolution
The process of insolvency resolution is conducted by the Insolvency
professional.

This professional is Interim in nature and is appointed by IBBI or

Insolvency and Bankruptcy Board in India.
Initiator of Insolvency Resolution
Process

 The insolvency resolution process can be initiated

by:

 The operational or financial creditors.

 Under some conditions, this process can also be

initiated by:

 Corporate debtors as well.

Process If Insolvency Resolution
Creditor
Insolvency
Payment Sends A Debtor
Resolution
Default Demand Response
Requested
Notice

Insolvency
NCLT CoC Information
Plan
Appoints IP Appointed Utility
Formulated

CoC
NCLT Sees
Votes on
the Plan
Plan
1. Payment Default
 A payment default is committed: The debtor commits a default
where they fail to pay their debts on time.
2. Creditor Sends A Demand Notice
 The creditor sends a demand notice to the debtor: Under
section 8 of the Insolvency and Bankruptcy Act, the debtor can
send a demand notice to the debtor.
3. Debtor Response
 The debtor has 10 days to respond to the demand notice. They
either have to show:

The debt is paid. The debt is in dispute. No response.

4. Insolvency Resolution Requested
 No/bad response -> insolvency resolution requested : A petition
of insolvency resolution is filed under section 9 of IBC act.
5. NCLT Appoints IP
 NCLT appoints an Insolvency professional: The national
company law tribunal appoints an insolvency professional to
conduct the process.
6. CoC Appointed
 Committee of Creditors appointed: Creditors choose their
representatives to form a committee of creditors.
7. Information Utility
 Information extracted from information utility : The Insolvency
professional extracts the financial information of the debtor.
8. Insolvency Plan Formulated

 Insolvency professional formulates a

plan: The insolvency resolution
professional formulates an insolvency
resolution plan.
9. NCLT Sees the Plan
 Insolvency professional formulates a plan: The insolvency
resolution professional formulates an insolvency resolution plan.

NCLT
10. CoC Votes on Plan
 The creditor committee can vote for or against the plan:
 If the creditor committee vote for the plan -> Resolution
 If the creditor committee vote against the plan -> Liquidation.
Insolvency Resolution Process Time
Time taken for the complete Insolvency resolution process tends to be
different on the basis of size of the companies:

 For Large Companies:

 For big companies, the process takes 180 days.
 This date can be extended to 270 days for a single time.

 For Small companies:

 For small companies, the process takes 90 days.
 This date can be extended to 135 days for a single time.
 Contact Us

+91-8882-580-580

support@registrationwala.com

www.registrationwala.com