The National Company Law Tribunal (NCLT) hears insolvency proceedings against companies and many company law disputes. Debts Recovery Tribunals (DRTs) hear recovery claims by banks and financial institutions and challenges to enforcement action under the SARFAESI Act.
We act for creditors, borrowers, guarantors and shareholders in these proceedings.
What this covers
- Insolvency applications by financial and operational creditors
- Responses for corporate debtors and guarantors
- Oppression and mismanagement petitions
- Original applications for recovery before the DRT
- Securitisation applications against SARFAESI measures
How the process generally works
- Check eligibility and thresholds
Insolvency proceedings can generally be started only where the default meets the notified minimum, currently one crore rupees.
- Notice
Operational creditors must first serve a demand notice. Secured creditors issue a section 13(2) notice under SARFAESI before taking measures.
- Tribunal proceedings
Applications are filed before the bench with territorial jurisdiction and heard on the documents and arguments.
Relevant law
- Insolvency and Bankruptcy Code, 2016
- Companies Act, 2013
- Recovery of Debts and Bankruptcy Act, 1993
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)
Common questions
How long do I have to challenge a SARFAESI action?
An application under section 17 of the SARFAESI Act is generally to be filed before the Debts Recovery Tribunal within 45 days of the measure complained of. Seek advice promptly.