Insolvency Resolution Process under IBC

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Insolvency Resolution Process in India

• Presented By
• Registrationwala

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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.

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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.
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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.

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Process If Insolvency Resolution
CoC Votes on Plan
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1. Payment Default

• A payment default is committed The debtor
  commits a default where they fail to pay their
  debts on time.

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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.

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3. Debtor Response

• The debtor has 10 days to respond to the demand
  notice. They either have to show

No response.
The debt is in dispute.
The debt is paid.
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4. Insolvency Resolution Requested

• No/bad response -gt insolvency resolution
  requested A petition of insolvency resolution
  is filed under section 9 of IBC act.

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5. NCLT Appoints IP

• NCLT appoints an Insolvency professional The
  national company law tribunal appoints an
  insolvency professional to conduct the process.

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6. CoC Appointed

• Committee of Creditors appointed Creditors
  choose their representatives to form a committee
  of creditors.

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7. Information Utility

• Information extracted from information utility
  The Insolvency professional extracts the
  financial information of the debtor.

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8. Insolvency Plan Formulated

• Insolvency professional formulates a plan The
  insolvency resolution professional formulates an
  insolvency resolution plan.

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9. NCLT Sees the Plan

• Insolvency professional formulates a plan The
  insolvency resolution professional formulates an
  insolvency resolution plan.

NCLT
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10. CoC Votes on Plan

• The creditor committee can vote for or against
  the plan
• If the creditor committee vote for the plan -gt
  Resolution
• If the creditor committee vote against the plan
  -gt Liquidation.

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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.

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Contact Us

• 91-8882-580-580
• support_at_registrationwala.com
• www.registrationwala.com