The Corporate Insolvency Resolution Process plays a key role in deciding the debtor company’s fate it can either be run as a going concern or can also be put under liquidation process. In this Article the author tries to establish the procedural theoretical aspects of the insolvency resolution process after such order is passed by the National Company Law Tribunal.
Track your NCLT / NCLAT cases or orders in your apple iOS / Google Android smartphones. Available for free trial period of 15 days.
- Appointment of an Interim Resolution Professional
He is vested with the power to take charge of the affairs of the company which has defaulted. He can both raise fresh funds and call back for credits and also ensure that the company is on the right track to revival. The Interim Resolution Professional is thus given a period of 180 days to find a resolution and an extension of 90 days can be provided if needed. In case there is no resolution passed the company is put into liquidation via order passed by the National Company Law Tribunal.
- Decision to be taken by Committee of Creditors
After Financial information of the debtor from the information utilities to the creditor and manage the debtor’s assets. The committee will take a decision with respect to the future of the debt that is owed to them.
- Declaration of moratorium
This period will exist from the date of admission till the completion of corporate insolvency resolution process further; generally the time taken for this process spans for about One eighty days and with the request of the Bench an excess of ninety days can be extended. Further moratorium ensures that no legal proceedings are initiated against the debtor company which also includes proceedings initiated by the government authorities and to also ensure the company runs as a going concern without any hindrances. During the moratorium period other insolvency resolution process is carried out without any hindrances.
