- Demand notice to be issued to the Corporate Debtor by the Operational Creditor demanding payment of amount involved.
- The Corporate Debtor, within a period of ten days of the receipt of the demand notice shall notify the Operational Creditor of the existence of a dispute if any or show proof of repayment.
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- After the expiry of the aforementioned ten days period, the Operational Creditor shall file an application in the NCLT under Insolvency Code, 2016 accompanied with the required documents, fee and records.
- The time period for the application to get listed before the Hon’ble Bench will take around 2 to 4 weeks from the date of filing.
- After the matter being listed before the Hon’ble Bench, the proceedings /hearing of the matter will take 3 to 6 months (general from experience).
- The NCLT may
- Admit the application,
- Reject the application (if feels there are disputes and other pending cases or some other ground also),
- Dispose the matter as Settlement happens between the parties.
- On admission of the Application by the NCLT, an Interim Resolution Professional (IRP) will be appointed and a cost of Rs. 1.25 to 1.50 lakhs (general experience) is to be borne by the Op. Creditors who filed the case towards IRP + paper publication. This is exclusive of legal costs that the Op Creditor incurs.
- After the appointment, the IRP makes a public announcement inviting creditors to submit their claims and the entire process of CIRP is to be completed within 180 days (subject to an extension of 90 days) from the date of admission of the Application.
- Eventually Cos. either restructures and pays Creditors with a haircut or goes into liquidation.
