The terms ‘bankruptcy’ and ‘insolvency’ are often used interchangeably but they have different meanings.

Insolvency is a financial state when an individual or company can no longer meet their financial obligations to lenders as debts become due whereas Bankruptcy is a legal proceeding initiated when a person or business declares that he/she or it can no longer pay back his/her or its debts to creditors.

The Insolvency and Bankruptcy Code 2016 (IBC) regulates insolvency and reorganization of private companies, partnership firms and individuals in a timely manner. The Insolvency and Bankruptcy Board of India (IBBI) has been established as the regulating authority by the IBC. Additionally, the National Companies Law Tribunal (NCLT) has been made the appropriate authority for corporate insolvency resolution and liquidation proceedings.

The proceedings under IBC begin when an application is filed before the Tribunal by any person to whom financial liability is owed and such liability is yet to be satisfied. Additionally, the proceedings may be commenced by the company itself or its members when default has been committed in respect of debt. We are one of the top most law firms to provide our clients with comprehensive legal service in field of insolvency and Bankruptcy law. Our services in this sector include restructuring, actual liquidation and winding up of businesses, advising clients at pre-insolvency stage as well as during insolvency resolution proceedings, acquisitions, drafting resolution plans, representing clients before the National Company Law Tribunal etc.