CORPORATE DEBTOR UNDER IBC

A corporate debtor under Insolvency and Bankruptcy Code, 2016 (IBC) is the Corporate Person who owes a debt to any person. Corporate person is defined u/s 3(7) of IBC which include

  • Companies defined Companies Act
  • LLP defined under LLP Act
  • Any other person incorporated with limited liability

But does not include financial services provider i.e. banks or NBFCs.

IBC FOR CORPORATE DEBTORS

As per section 7 and 9 of IBC, it is not compulsory to give the opportunity of being heard to the corporate debtor, before the admission of IBC application. And as per section 14, once IBC application is admitted, the management of the company goes in the hands of IRP proposed by such applicant. Hence, there become high chances that even a small default may trigger the situation where the company goes out to hands.

Due to the above mechanism, at one hand where creditors are recovering debts from the distressed company, whereas some creditors, are using IBC provision to threaten and harass the corporate debtor. It is a misuse of new law to create a pressure upon the corporate debtor to recover the fraudulent/bogus claims.

PROTECTION AGAINST THE FRAUDULENT CLAIMS

A corporate debtor can defend the Insolvency Petition filed against them if the claim raised by the creditor is not genuine or have been raised to harass the corporate debtor. When an application is filed against the corporate debtor, the corporate debtor should verify the accounts and identify whether the claim raised is genuine or not.

DEFENSE AGAINST THE INSOLVENCY PETITION

Under IBC every creditor, financial or operational, has to follow a certain procedure to establish the claim and initiate the insolvency resolution process. If the procedure is not duly followed then the corporate debtor has a very good defense to get the petition disposed of. Recently, Hon’ble Supreme court in the case of B.K. Educational Services Pvt. Ltd. has upheld the applicability of limitation Act to the IBC application and defaults.

AGAINST THE FINANCIAL CREDITOR

If the petition is filed by the financial creditor the corporate debtor should:-

  1. Check whether the key essentials to file the petition have been fulfilled or not?

Firstly, the debt and default should have occurred before filing of petition and if none of the element is present, the petition filed by the financial creditor shall get rejected.

  1. Identify, whether the claim is genuine or not?

The corporate debtor should check the accounts thoroughly and verify the claim from the accounts. If any discrepancy arises, the corporate debtor should file the reply within the prescribed time period.

AGAINST THE OPERATIONAL CREDITOR  

If the petition is filed by the operational creditor then the corporate debtor should check:-

  1. Prior to filing of petition the demand notice should have been issued by the operational creditor in the prescribed format.
  2. The existence of any dispute is between the corporate debtor and operational creditor
  3. The pendency of any proceedings already pending between the operational creditor and corporate debtor.

If any of the above situations exists, then the corporate debtor has strong grounds to defend the petition.

VOLUNTARY INSOLVENCY

Business does not always flourish. It might face many challenges like financial crunch and business crisis due to which the Corporate Debtor delays in fulfilling its liability towards the creditors.

If the corporate debtor is unable to discharge it liabilities and does not have enough resources like funds available, to revive the business then corporate debtor can voluntarily file the insolvency petition to undergo the Corporate Insolvency Resolution Process and NCLT shall admit it if the petition has not been filed to defraud the creditors.

WHY CENTRIK FOR IBC

Our well-qualified team of IBC, which includes insolvency professionals, is having versatile experience and represent various clients before NCLT and NCALT at PAN India level. Our experts do the preliminary research and give you the complete value addition. Please get in touch with us at ibc@centrik.in or call our expert at 8383011629

Get your first FREE consultation today

GET STARTED

Latest Blogs

Our Latest Blogs

UP-RERA takes over Unnati Fortune’s deregistered Aryana Project
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test One of the first projects to be deregistered by UP-RERA and the subsequent proceedings will decide how well RERA will...
Impact of RERA so FAR
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test RERA, has taken cognizance of the multiple ways by which consumers have been cheated in the past, and provided for...
Critical Analysis of RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test The act was introduced to curb the mal-practices and the abuses caused to the customer. The act intends to protect...
A new tool in the hands of RERA Authorities
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test The RERA Act empowers the Regulatory authority to call for information or conduct investigations. These investigations have been mainly in...
Brief Introduction to RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test Over the course of the last two years, RERA has come up and grown as an effective weapon for consumers...
MahaRERA Opens-up door for Revocation
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test MahaRERA has wide order No 8/19 dated 28th March 2019 opened up door for revocation of the registration in accordance...
UPRERA adopts satellite mapping to monitor Illegal construction
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test After MahaRERA, UPRERA also has adopted the services of a satellite to monitor the illegal construction and dubious projects being...
UPRERA gets tough: Rejects Applications of 36 Builders
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test The Uttar Pradesh Real Estate Regulatory Authority, Greater Noida Bench had rejected the registration applications of as many as 36...
NCR is the King, when it comes to delayed realty projects
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test RERA Act has already been functional in all cities of NCR for almost 2 years now and still, such big...
Should RERA Authorities grant refund to the every complainant?
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test The officials of the UPRERA Authority have decided not to encourage refund if the project is not stalled and have...
RERA: Builder has the duty to make association
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test The Builder is not mandatory but it is the sole responsibility of the builder to enable the formation of the...
MahaRERA issues notices for the recovery of money
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Under Section 40 (1) of the RERA Act 2016, the authority can issue recovery warrants against developer who failed to...
Developers refraining from registering with RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test It's been around 2 years of implementation of the RERA Act, various developers have failed to get their projects to...
MahaRERA rules on applicability of section-12 and 18 of RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test While dismissing the complaint the authority observed that both the Section i.e. 12 and 18 operate at two separate times...
Bihar RERA freezes bank accounts of builder
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test Bihar RERA Authority exercising power under Section-36 of the Act which gives power to the Authority to pass interim orders...
HC issues notice to center over discrepancy in RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test The Hon’ble bench Division Bench of Justice Mahesh Grover and Justice Lalit Batra after hearing the arguments on behalf of...
Noida: UPRERA survey expects delivery of 40,000 flats
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test The all the steps taken by the UPRERA Authority is now finally giving some lucrative results and the long wait...
New Year to bring changes in RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Central government is looking forward to bring a (removal of dificulties) order under section 91 of Real Estate and Regulation...
RERA in Jammu and Kashmir
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test The Jammu and Kashmir government has decided to set up the Real Estate Regulatory Authority in Jammu and Kashmir to...
RERA: A hope of a revival for the Real Estate sector
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test Real estate across the country is already witnessing signs of revival. In the last couple of quarters in this financial...
RERA should remain the same for next few years
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test RERA Act, 2016 and further with more positive reforms a new face of real estate sector free from all encumbrances...
UP RERA issues notices to 12 builders for diversion of funds
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test UP-RERA authority has issued show cause notices to 12 builders who have allegedly diverted funds worth 3000Cr to 4000Cr and...
RERA- The story so Far
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Almost 18 months have passed since the enactment and the central government as well as concerned state governments are far...
RERA: Delhi now has its full time RERA Authority
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test Delhi has its own full-time real estate regulatory Authority, whereas till now the vice-chairman of the Delhi Development Authority (DDA)...
Role of RERA Authority for Completion works
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test The matter of Shubhkamna in Greater Noida wherein the Authority has asked for a plan for the association of buyers...
RajRERA: Constitution of RERA authority and appellate tribunal
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test To avoid financial burden, the RERA has decided not to set up a permanent appellate tribunal. On same reasons set...
RERA orders forensic audit on Ansal’s
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test The Lucknow bench after hearing a series of complaints against Ansal’s in particular, it has ordered for the forensic audit...
RERA implementation in north eastern states
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , ,
Test Center has decided to send a special team to six northeastern states later this week to resolve issues pertaining to...
Benefits for Homebuyer under RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test RERA Authorities are functional in almost all states. The authorities though being on nascent stage are trying their best to...
Provisions under RERA for structural defect & poor quality of construction
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test case of any structural defect incurred in next five years from the date of giving the possession; the builder/promoter is...
Occupation and Completion certificate to be withdrawn in case of incomplete projects: Haryana RERA
Posted on 0 CommentsCategories RERA ConsultingTags
Test The RERA Act mandated registration with the newly formulated state RERA authorities but the rebate was given to projects which...
UPRERA: More than 1500 projects in Uttar Pradesh may be penalized
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test In the hue and cry of registration process after the implementation of RERA many builders were unable to provide all...
RERA in last one year for homebuyers
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , ,
Test This is not compulsory that all RERA registered projects are investment worthy ,there are many projects registered under RERA on...
New IBC Ordinance effect on RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , ,
Test The purpose and the objective for Enacting IBC is different as Compared to RERA Act, which explicitly focuses in resolving...
West Bengal Deviates its RERA rules from Central Act
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Real estate projects under RERA Act has gotten a difficulty as West Bengal government has articulated its own law for...
Pune MahaRERA court resolves 40 cases in less than three months
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test As indicated by authorities, out of the aggregate 240 cases transferred from Maha-RERA to the Pune court, the seat settled...
Brochure of Project: A legal entity or not?
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Brochures of Project were printed and distributed before the commencement and implementation of RERA therefore, the same cannot be treated...
Rajasthan RERA says no to builders for extention of possession date
Posted on 0 CommentsCategories RERA ConsultingTags ,
Test According to the Rajasthan RERA If the possession is not provided on the given date then it will amount to...
UP builders may be charged under provisions of Gangsters Act for violations
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test Builders in Uttar Pradesh will be charged under UP Gangsters and Anti-Social Activities (Prevention) Act, 1986 for the muddling with...
UP RERA notifies editing process and fees for all registered projects
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test UP RERA has notifies the process & fees for editing the registration information and details provided at the time of...
Pagdi buildings falls under the ambit of RERA or not
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test Maharashtra Government has decided to bring in tenanted or cessed buildings under RERA. The motive to include these building under...
Recent RERA Developments in Karnataka
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Building customer trust and making the sector more organized and disciplined was another objective of Real Estate Regulation Act. Bengaluru...
Conflict between IBC and RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test Both the IBC and RERA have the provisions where the probability for the conflict in their operations are very high.
RERA helping in the restoration of Indian Real Estate Sector
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test An article about how the implementation of the RERA Act has deeply affected the recovery of the Indian Real Estate...
Takeover of the under construction projects by RERA authority
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Since the implementation of Real Estate (Regulation and Development) Act, 2016 we have witnessed a drastic change in the grievance...
RERA effect on Insurance Sector
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test RERA Act has given legal remedies for the aggrieved home-buyers and also chained the malicious acts of the Developers.
RERA: Conceptualization of Transparency & Efficiency in Real Estate Sector
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test A true picture of RERA shows that RERA is an all – embracing protector and promoter of the real estate...
RERA Karnataka- Permanent Approval vs Provisional Approval
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test More than 400 projects were operational and many of them were on the verge of completion on the basis of...
RERA- Organizing the Real Estate Sector
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test RERA stands tall regulating and promoting the real estate sector and protecting the consumer’s interest.
Allottees Grievances Redressal Forum will now deal with post possession issues
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , ,
Test The grievances of the homebuyers who have already taken the possession will be entertained by the AGRF now as the...
HRERA, Gurugram first Hearing- fine of 30 Lakhs
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , ,
Test HRERA forced a punishment of Rs 30 lakh on an Indo-Japanese joint venture to advertise its task even before registering...
Allottees of HUDA can file complaint before HRERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test H-RERA has announced that alongside with the people who have purchased homes from private developers, the allottees of the HUDA...
RERA’s first hearing in Gurgaon on March 27, 2018
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test RERA Authority in Gurgaon, HRERA now going to begin its grievance redress system by holding the first hearing of complaints...
RERA Effect- Channel Partners are the new star of Real Estate Sector
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Channel partners are multi-functional persons. They work better than brokers because they give advisory for buying the property and they...
MAHA RERA- Leading by setting examples
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Till date MAHA RERA has disposed approx. 850 complainants and in majority the aggrieved home buyers got the relief.
Amendment combining RERA with MHADA Act
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test RERA authority has taken under its ambit of the ongoing reconstruction of old dilapidated structures across Mumbai, on the instruction...
RERA has registered 1,331 projects in Karnataka
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Karnataka is the second state to implement RERA Act for real estate. RERA Authority has successfully registered 1,331 projects out...
An Awareness for Tamil Nadu Developers – RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test Almost every State RERA Authority has started functioning to serve the purpose of the Act and ensuring that no provisions...
2018 – A boom for Karnataka Real Estate Industry
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test The floating population of Bengaluru is too high due to the raise of IT industries, the development of residential projects...
Slow Functioning of Karnataka RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Karnataka had been the second State to implement the RERA Rules within its jurisdiction however the trailblazer has seemed to...
Extension of Deadline as a Warning by Goa RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test     According to Section 59(1) of Real Estate (Regulation and Development) Act, 2016, if any promoter contravenes Section 3...
The completion date has been preponed by MahaRERA
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Justice to be served wherever the issue relates to. MahaRERA is leading ahead in proper implementation of RERA regulations. The...
2018 – A Year of Consolidation for Smaller Developers
Posted on 0 CommentsCategories RERA ConsultingTags , , , , ,
Test Now a days the smaller developers are consolidating and have started merging with the Tier-1 developers for the sake of...
Punjab gives another chance to developers to register with RERA
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test Punjab RERA some sections of the Act were enforced with effect from 1st May 2016 although it came completely into...
RERA Complaints in Karnataka
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Karnataka (Real Estate Regulatory Authority) is the authority made for homebuyers so that they can get relief and developers cannot...
Circle Rate Revision in Gurgaon Real Estate
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test The district administration of Gurgaon has revised its circle rates and the same will come into effect from Monday, February...
RERA provision regarding 70 percent Deposit in Bank Account
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test One of the most prominent provision requires the Developers to deposit 70 percent of the funds collected from buyer in...
20 Property Dealers File Papers at New RERA Office
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test HRERA received 20 applications from those looking for registration as property dealer in two days after the beginning of operations...
65 Projects approved under RERA in Mysore
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test A sum of 65 real estate projects in Mysore had been affirmed by Real Estate Regulatory Authority (RERA), which had...
RERA Notice to 10 City Realtors
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test UDHD have cautioned the promoters and developers of 10 forthcoming projects in and around Patna against publicizing and advertising their...
Real Estate agents not registering under rera citing lack of awareness
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test With real estate accessible in relatively every corner of the State, from shops offering photocopying facilities to visit organizations, one...
Gurgaon RERA to accept complaints from 6th February
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , , ,
Test Gurgaon RERA: The distressed homebuyers will have the capacity to register complaints against developers for not honoring the builder buyer...
MahaRERA launches India’s First Conciliation Forum under RERA
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test MahaRERA has formally proclaimed the launch of its reconciliation platform. The forum will come into live from February 1, 2018....
The Real Estate Market for “Affordable Housing”
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test Affordable housing for all, the Narendra Modi government’s plans aimed at housing for the masses, could indeed change the face...
DLF aims to make development arm zero net-debt company
Posted on 0 CommentsCategories RERA ConsultingTags , ,
Test After the finish of the promoter's stake deal in its rental arm to Singapore sovereign riches support GICBSE - 0.29...
BHARTI Realty: Growing Big on Bag
Posted on 0 CommentsCategories All About GST, RERA ConsultingTags , , , , , , ,
Test Bharti Realty is the Real Estate firm of Bharti Enterprise which is planning to invest a hug amount of money...
Builders cannot use Intent of disapproval to commence Construction
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Intent of Disapproval has no nexus to proceed with the construction and it cannot be equated with Commencement Certificate, it...
RERA is for Promoting Real Estate Sector and not for Strangling: Venkaiah
Posted on 0 CommentsCategories RERA ConsultingTags , , ,
Test Last year, the government had declared the much-awaited watchdog for the real estate sector i.e. Real Estate (Regulation and Development)...
RERA – Real Estate Market Booster
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , , , ,
Test The commission of RERA and thereby regulating the real estate sector has led to great transformation within the market.
RERA- An opportunity for Corporate Developers
Posted on 0 CommentsCategories RERA ConsultingTags , , , , , ,
Test With the introduction of Real Estate Regulation and Development Act, 2016, the market condition has completely been changed for Real...
Budget 2018: Will the budget 2018 ease Income Tax Benefits for Homebuyers?
Posted on 0 CommentsCategories RERA ConsultingTags , , , ,
Test The finance minister will create Union Budget 2018-19 in a way that would support the economy and guarantee GDP development...