Cardiff Services

Insolvency (IBC) Matters

Overview – Insolvency (IBC) Matters

The Insolvency and Bankruptcy Code (IBC), 2016 is a comprehensive legal framework designed to consolidate and amend laws relating to insolvency and bankruptcy in India. It aims to streamline the process of insolvency resolution for companies, individuals, and partnership firms, promoting timely recovery and maximizing asset value.

 

IBC facilitates a time-bound resolution mechanism for stressed assets, balancing the interests of creditors and debtors. It provides a structured approach to insolvency through Corporate Insolvency Resolution Process (CIRP), liquidation, and bankruptcy proceedings, supervised by the National Company Law Tribunal (NCLT).

 

At Cardiff Services, we offer end-to-end support for IBC matters including insolvency filing, resolution planning, compliance, and representation before NCLT to ensure smooth and legally compliant insolvency resolution.

Features – Insolvency (IBC) Matters

  • Comprehensive Legal Framework
    Covers insolvency and bankruptcy for companies, individuals, and partnerships.

  • Time-Bound Resolution Process
    Ensures insolvency resolution or liquidation within a prescribed timeline (typically 180-270 days).

  • Corporate Insolvency Resolution Process (CIRP)
    Structured process for resolving corporate insolvency under NCLT supervision.

  • Liquidation Mechanism
    Provides for liquidation if resolution fails, ensuring asset realization and distribution.

  • Creditor-Initiated Proceedings
    Allows financial creditors to initiate insolvency proceedings against defaulting debtors.

  • Debtor-In-Possession Model
    Debtor continues operations during the resolution process, under the supervision of the Insolvency Professional.

  • Insolvency Professionals and Resolution Professionals
    Qualified professionals manage the resolution and liquidation processes.

  • Adjudication by NCLT
    National Company Law Tribunal acts as the adjudicating authority for corporate insolvency.

  • Priority to Financial Creditors
    Emphasis on maximizing recovery for financial creditors.

  • Promotion of Ease of Doing Business
    Facilitates quick turnaround and exit for stressed companies, improving the business environment.

Documents Required – Insolvency (IBC) Matters

  • Copy of default notice or proof of default in repayment of debt

  • Financial statements and audited accounts of the company/debtor

  • List of creditors and their claims

  • Board resolution authorizing initiation of insolvency proceedings (if applicable)

  • Details of secured and unsecured creditors

  • Loan agreements, sanction letters, and relevant financial contracts

  • Copies of agreements related to assets and liabilities

  • Insolvency application or petition filed before NCLT

  • Declaration of insolvency by debtor (if applicable)

  • Records of dues and outstanding payments

  • Proof of claim filed by creditors

  • Identification and KYC documents of the insolvency professional/resolution professional

  • Correspondence and notices exchanged with creditors

  • Any previous legal or regulatory orders related to the insolvency case

Procedure – Insolvency (IBC) Matters

  • Default Occurs

    • Debtor defaults on repayment of debt to creditors.

  • Filing of Insolvency Application

    • Financial creditor, operational creditor, or debtor files an insolvency petition with the NCLT.

  • Admission or Rejection by NCLT

    • NCLT reviews the petition and either admits it (initiating CIRP) or rejects it.

  • Appointment of Interim Resolution Professional (IRP)

    • On admission, NCLT appoints an IRP to take control of the company’s assets and affairs.

  • Public Announcement

    • IRP makes a public announcement inviting claims from creditors.

  • Constitution of Committee of Creditors (CoC)

    • CoC is formed consisting mainly of financial creditors to oversee the resolution process.

  • Preparation and Submission of Resolution Plan

    • Resolution applicants submit their resolution plans to the CoC.

  • Approval of Resolution Plan

    • CoC evaluates and approves the resolution plan by a 66% majority.

  • NCLT Approval of Resolution Plan

    • Approved plan is submitted to NCLT for final approval.

  • Implementation of Resolution Plan

    • Upon NCLT approval, the resolution plan is implemented, and control is handed over to the successful bidder.

  • Liquidation (If Resolution Fails)

    • If no plan is approved within the stipulated time, NCLT orders liquidation of the company.

  • Distribution of Assets

    • Liquidator sells assets and distributes proceeds among creditors as per priority.

  • Closure of Proceedings

    • After completion, the company is dissolved and struck off the register.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms