• Creditor of Company Under Insolvency and Bankruptcy Board of India

Hi,
I am creditor of a Company which went under "Insolvency and Bankruptcy board of India" u/s 6 on 03.05.2021.
Estimated date of closure of Insolvency resolution process- 30.10.2021.

I have dropped all the details of my credit to the NCLT office appointed and he then acknowledge the credit proofs and asked me to talk to the company for the payment now as monotorium is removed from the company now.

Concern-
Company is now saying to take 30-40% of the amount as settlement. Hence I need to know if I have any legal option to fight for my complete money instead of taking 30-40% of it.

Thanks.
Asked 7 days ago in Business Law

4 answers received in 2 hours.

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13 Answers

You have to study the current financial status of the company by scrutinising its last balance sheet and P&L account statement and then decide on the company's offer. It is better to accept the settlement as the company has already been under the NCLT proceedings.

Swaminathan Neelakantan
Advocate, Coimbatore
1018 Answers
17 Consultations

4.9 on 5.0

What is total debt due and payable by company 

 

check the financial position of company as on date

 

consult a local layer before you accept company offer of 60 per cent haircut 

Ajay Sethi
Advocate, Mumbai
84384 Answers
5530 Consultations

5.0 on 5.0

Company had to file its audited accounts with registrar of companies 

 

you can take search and obtain details of financial position of company from ROC 

 

amicable settlement is best option 

Ajay Sethi
Advocate, Mumbai
84384 Answers
5530 Consultations

5.0 on 5.0

If it is a public limited company, all its financial documents are public records available on the RoC portal. If you know the CIN of the company, you may access these records. As a creditor, you have every right to demand these statements from the NCLT too. Please engage a practising Company Secretary to help you out.

Swaminathan Neelakantan
Advocate, Coimbatore
1018 Answers
17 Consultations

4.9 on 5.0

A moratorium is a temporary suspension of an activity or law until future consideration warrants lifting the suspension, such as if and when the issues that led to moratorium have been resolved

It is up to you to accept the moratorium offered by the company or to reject their offer and to proceed legally  and to continue with the proceedings that is going on now.  

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

Powers of NCLT during insolvency resolution of Corporate Persons – The National Company Law Tribunal shall have jurisdiction to entertain or dispose of following applications and claims while exercising jurisdiction. These are overriding provision, even if contrary to any other law – section 60(5) of Insolvency Code, 2016.

(a) any application or proceeding by or against the corporate debtor or corporate person;

(b) any claim made by or against the corporate debtor or corporate person, including claims by or against any of its subsidiaries situated in India; and

(c) any question of priorities or any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under this Code.

The interim resolution professional shall make every endeavour to protect and preserve the value of the property of the corporate debtor and manage the operations of the corporate debtor as a going concern [section 20(1) of Insolvency Code, 2016].

 

The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the interim resolution professional as may be required by him in managing the affairs of the corporate debtor – section 19(1) of Insolvency Code, 2016.

If they do not cooperate, application can be made by interim resolution professional to the Adjudicating Authority (NCLT) for necessary directions. NCLT will issue suitable orders – section 19(3) of Insolvency Code, 2016.

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

You can claim full refund of your money 

File your independent application before NCLT for resolution of insolvency of debtor company 

 

Yusuf Rampurawala
Advocate, Mumbai
6500 Answers
55 Consultations

5.0 on 5.0

You can seek to recover your outstanding dues from company as it has sufficient assets to pay its creditors 

Ajay Sethi
Advocate, Mumbai
84384 Answers
5530 Consultations

5.0 on 5.0

It is a call you have to take depending upon your own current financial status. The company may appear to be solvent at present, but does it have a comfortable liquidity position to pay off its creditors? As advised earlier, please consult a reliable chartered accountant / company secretary in such matters for better and wiser professional advice.

Swaminathan Neelakantan
Advocate, Coimbatore
1018 Answers
17 Consultations

4.9 on 5.0

Yes you can get it

Prashant Nayak
Advocate, Mumbai
24476 Answers
52 Consultations

4.4 on 5.0

you have to first give a demand notice to the company

if it does not respond then file your independent NCLT case against this company 

Yusuf Rampurawala
Advocate, Mumbai
6500 Answers
55 Consultations

5.0 on 5.0

So you may take a considered decision on the basis of the information you had received.

If you are confident about it you can go ahead with your decision.

Since the proceedings are between the bank and the company you need not get yourself involved in that. 

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

Dear client, 

you should be eligible to get your money after the company resumes as it has enough assets to pay its creditors. 

Thank you 

Anik Miu
Advocate, Bangalore
2729 Answers
27 Consultations

4.9 on 5.0

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