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Insolvency & Liquidation Support

Comprehensive legal and operational support for Resolution Professionals, Liquidators, CoC members, and institutional claimants in reconciling debtor books, recovering sticky estate receivables, and maximizing liquidation estate value.

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The Insolvency and Bankruptcy Code (IBC) 2016 requires Resolution Professionals (RPs) and Liquidators to manage complex corporate debtors under severe statutory time limits. The single largest obstacle to maximizing estate value is often uncollected receivables, fragmented account records, and recalcitrant third-party debtors who take advantage of the corporate debtor's distress.

We partner with Insolvency Professionals, Liquidators, and Committees of Creditors (CoC) to provide institutional muscle: auditing and reconstructing debtor books, issuing statutory recovery demands, reconciling contested balances, prosecuting avoidance applications, and representing the estate before the NCLT and appellate tribunals.

Who this is for

  • Insolvency Resolution Professionals (IRPs/RPs) conducting the Corporate Insolvency Resolution Process (CIRP).
  • Liquidators managing asset realization, avoidance proceedings, and distribution under Section 53 waterfall mechanisms.
  • Committee of Creditors (CoC) members and financial institutions monitoring asset preservation and resolution plan viability.
  • Operational and financial creditors navigating claims verification, voting thresholds, and objection filings.

Core practice support

  • Debtor ledger reconciliation, verification of claims, and recovery demand formulation.
  • Section 19(2) non-cooperation applications against former management and statutory auditors.
  • Formulation and prosecution of avoidance applications under Sections 43, 45, 49, and 66 of IBC.
  • Assisting in the formulation of the Information Memorandum, Asset Memorandum, and process notes.

What’s included

  • End-to-end debtor ledger reconciliation and evidence verification for insolvency estates
  • Drafting and issuance of advocate recovery demands against third-party estate debtors
  • Filing and prosecution of Section 19(2) non-cooperation petitions before the Adjudicating Authority (NCLT)
  • Drafting avoidance applications for preferential, undervalued, fraudulent, and extortionate transactions
  • Advisory on Committee of Creditors (CoC) governance, voting compliance, and CIRP regulations
  • Preparation of liquidation asset memorandums, auction notices, and sale process documents
  • Representation before NCLT, NCLAT, and High Courts in contested CIRP and liquidation disputes
  • Advising on interim finance structuring, priority payments, and Section 53 waterfall distribution

How it runs

  1. Estate Data Intake & Forensic Ledger Audit

    Ingesting historical ERP data, audited financials, tally backups, bank statements, and claim dockets.

  2. Debtor Classification & Actionable Demand Issuance

    Categorizing debtors into cooperative, contested, and recalcitrant; issuing formal statutory demands.

  3. NCLT Filings & Avoidance Proceedings

    Instituting Section 19(2), Section 43/45/66 applications, and recovery proceedings before the bench.

  4. Value Realization & Estate Distribution

    Securing recovered funds into the CIRP/liquidation account and facilitating statutory distribution.

FAQs

How can a Resolution Professional or Liquidator recover debts from third-party trade debtors?

While the NCLT is not a debt collection court for disputed pre-insolvency contractual debts, RPs and Liquidators have powerful tools: issuing statutory demands, initiating civil summary proceedings, invoking commercial arbitration, or filing applications under Section 60(5) for directions where debts are admitted or emanate from insolvency estate operations.

What recourse is available when suspended directors refuse to hand over books of accounts?

Under Section 19(2) of the IBC, the RP or Liquidator can file an urgent application before the NCLT. The Adjudicating Authority can direct the police commissioner to assist in securing office premises, seizing digital backups, and issuing summons or civil arrest directives against non-cooperative personnel.

How are recoveries from avoidance applications treated in liquidation?

Recoveries realized from avoidance proceedings (PUFE transactions) belong to the liquidation estate and are distributed to stakeholders strictly in accordance with the priority waterfall stipulated in Section 53 of the IBC, significantly enhancing creditor recoveries.

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