Winding up under IBC

Winding up under Insolvency and Bankruptcy Code, 2016

IBC is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The bankruptcy code is a one stop solution for resolving insolvencies which was a long process under the earlier laws and which does not offer an economically viable arrangement.

Insolvency Resolution

The Code outlines separate insolvency resolution processes for the following:

  • Individuals,
  • Companies and
  • LLPs and Partnership Firms.

Process Under IBC

  • The process may be initiated by either the debtor or the creditors. A maximum time limit, for completion of the insolvency resolution process, has been set for corporates and individuals. For companies, the process will have to be completed in 180 days, which may be extended by 90 days, if a majority of the creditors agree. For start-ups (other than partnership firms), small companies and other companies (with asset less than Rs. 1 crore), resolution process would be completed within 90 days of initiation of the request which may be extended by 45 days.

Likewise, the mandatory legal compliances necessary for company incorporation and business compliances, the winding up of a company also required mandatory compliances with Insolvency and Bankruptcy Code (IBC) and regulations of various regulatory bodies, such as ROC, the National Company Law Board Tribunal, SEBI, RBI, MCA, Income Tax Department, NCLAT etc. These mandatory provisions and rules in connection with winding up of companies have been applied mainly to ensure the following:-

  • Rights and welfare of members/ stakeholders, investors, the creditors and concerned community etc.;
  • Strict compliances and obedience to regulatory bodies and authorities;
  • Prevention of any fraudulent activities by the companies;
  • Security of the directly concerned State and the integrity and morality of India;and
  • Safety and welfare of the general public of India.

The winding up of a company is the process of shutting down its business activities, and selling off of its assets for paying off the creditors, shareholders, and all other liabilities.

Team RASHA is equipped with the expert team of Company Secretaries, Chartered Accountants and lawyers who always offer the whole gamut of services to winding up under IBC.

SCOPE OF OUR SERVICES:

  • Insolvency Services
  • Resolution services
  • Advisory Services
  • Services of Interim Resolution Professional (IRP)
  • Services as Liquidator
  • Service as resolution professional (RP)

We provide Our services under this segment which includes:

  • Advisory and Monitoring Services on Insolvency and bankruptcy to Debtors, Creditors and other Insolvency Professionals.
  • Roles and responsibilities as Interim Resolution Professional and Resolution Professional:
  • Management of Corporate Affairs of the Corporate Debtor
  • Determining the Financial position of the debtors
  • Instructing the financial institutions
  • Executing Deeds, receipts and other documents of Debtor
  • Execution of Contracts and modification of the existing contracts where required.
  • Accessing electronic Records with Information Utility
  • Receive and collate all the claims
  • Constitution of Committee of Creditors and conducting its Meetings
  • Monitoring the assets of the Debtor including Control and Custody of assets with ownership rights.
  • Co-ordination with Information Utility, where required.
  • Raise interim finance with the approval of Committee of Creditors
  • Determining the Voting share of the Creditors
  • Preparation of Information Memorandum
  • Obtaining approval from the Committee of Creditors for certain actions
  • Examination of Resolution Plan and obtain approval of the Committee of Creditors.
  • Submission of Resolution Plan to Adjudicating Authority.
  • Co-ordination with the Insolvency and Bankruptcy Board of India.
  • Assistance in the extension of the period of Corporate Insolvency Process beyond 180 days.
  • Liquidator Services
  • Fast Track Corporate Insolvency Resolution Process
  • Representing the Creditor in the meeting of Committee of Creditors, where such Creditor is the member.
  • Appearance before the Tribunal – Adjudicating Authority
  • Drafting/Vetting the Notices, Response to Notice, Agreements, Information Memorandum, Resolution Plans and other documents involved in Insolvency resolution process.

Team RASHA Advisory provide one stop solution for all compliances and needs in relation to winding up under IBC.

For more details kindly contact our manager at +91-8826983883 or mail us on info@rasha-india.com

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