My company in Bareilly cannot pay its debts; can I file for insolvency under IBC?
RA Asked by Rahul Saxena 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 Allahabad High Court on questions of law. Uttar Pradesh Rent Control Act 1972 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.