My company in Amritsar cannot pay its debts; can I file for insolvency under IBC?
AJ Asked by Ajay Malhotra from India
Quick Answer
You can file a petition under the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal if default exceeds one lakh, with documents proving default.
Detailed Legal Analysis
You can file a petition under the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal if default exceeds one lakh, with documents proving default. On admission, a moratorium bars all recovery actions, and an Interim Resolution Professional is appointed to manage the company.
The creditors' committee decides on resolution or liquidation, and the order is appealable to the NCLAT and Punjab and Haryana High Court on questions of law. Punjab Rent Control Act 1995 may interact with State industrial policy, but the IBC is central and overrides conflicting laws.
The resolution plan, once approved, binds all stakeholders. Personal insolvency for individuals is handled by the Debt Recovery Tribunal.
The process is time-bound at 330 days for resolution.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.