IBC and Insolvency Services for Creditors and Companies
The Insolvency and Bankruptcy Code, 2016 lets a creditor, or a company in trouble, start a time-bound resolution process before the NCLT. We prepare the claim, demand notice and application papers, and coordinate with your advocate and the insolvency professional. The Code was amended in April 2026, so check the new timelines.
What it is
The IBC is the law for resolving the insolvency of companies and other corporate debtors. The National Company Law Tribunal (NCLT) acts as the Adjudicating Authority, and the Insolvency and Bankruptcy Board of India (IBBI) regulates the professionals. Once the NCLT admits an application, a corporate insolvency resolution process (CIRP) begins. A committee of creditors then decides whether the company is rescued under a resolution plan or sent into liquidation.
Our IBC insolvency services cover the groundwork on either side of the table. For a creditor, that means the claim file, demand notice and application papers. For a company, it means reviewing the notice, documenting any dispute and weighing settlement. An advocate files and argues before the NCLT. An IBBI-registered insolvency professional runs the process after admission. We do neither.
Who it applies to
Financial creditors
Banks, lenders and other creditors whose debt was a loan or financial facility apply under Section 7. Real estate allottees must file jointly: at least 100 allottees of the same project or 10% of the total, whichever is lower.
Operational creditors
Suppliers, contractors and service providers owed for goods or services apply under Section 9, after a demand notice under Section 8. See legal notice drafting for the notice itself.
Companies in distress
A company can apply for its own insolvency under Section 10, or defend a creditor’s application. Say a Gurugram trading company gets a Section 8 notice for ₹1.2 crore of supplies it believes were defective. Documenting that dispute within 10 days is the first step of the defence.
Why it matters
It changes how creditors recover
Admission starts a moratorium under Section 14, which stops suits and recovery steps against the company.
The clocks run fast
The NCLT must admit or reject within 14 days, and the resolution process is limited to 180 days, extendable once by 90 days, with a 330-day outer limit under Section 12.
A dispute can end an operational claim
If the company shows a pre-existing dispute, the Section 9 application is rejected. A well-documented claim matters more than a large one.
Documents required
For a financial creditor
- Loan agreement, sanction letter and security documents
- Statement of account showing the default
- Record of default from an information utility, or other evidence
- Name and consent of the proposed insolvency professional
For an operational creditor
- Invoices, purchase orders and delivery proof
- Demand notice and proof it was delivered
- Affidavit that no dispute notice was received
- Bank certificate or record of non-payment
For the company
- Board resolution authorising the response or application
- Latest financial statements and creditor list
- Emails, notices and cases proving any earlier dispute
- MCA charge records (see charge creation and satisfaction)
Section 7, 9 and 10 at a glance
| Section 7 | Section 9 | Section 10 | |
|---|---|---|---|
| Who files | Financial creditor | Operational creditor | The company itself |
| Before filing | Evidence of default | Demand notice, then 10 days | Authorising board and member resolutions |
| Main risk | Defects in the application | Pre-existing dispute | Loss of control to the resolution professional |
| Minimum default | ₹1 crore (notified 24 March 2020) | ||
For MSME corporate debtors, the pre-packaged route under Chapter III-A has a lower minimum default of ₹10 lakh.
What changed with the 2026 amendment
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 received assent on 6 April 2026. The MCA brought most of it into force from 26 May 2026 through notification S.O. 2625(E). Section 7(5) now requires the NCLT to record reasons if it takes longer than 14 days to admit or reject an application.
Withdrawal after admission is tighter. Under Section 12A, it is allowed only after the committee of creditors is formed and before the first invitation for resolution plans, with 90% of the committee’s voting share. Group insolvency, creditor-initiated resolution and the cross-border framework were still awaiting notification when we last checked. We re-check before every filing.
How it works
Test the claim before anything else
We check that the default meets the ₹1 crore threshold and falls within limitation. Picture a Faridabad fabricator owed ₹1.4 crore by a Delhi company: the first question is whether the buyer ever disputed the invoices in writing.
Reconcile accounts and build the record
We match your ledger against the debtor’s confirmations and assemble the proof of default.
Serve the demand notice
For operational debts, we draft the Section 8 notice with the invoice schedule, and the advocate sends it.
Prepare the application
We compile the forms, annexures and affidavits. The advocate files and appears before the NCLT.
Coordinate with the insolvency professional
In practice, a claim stands or falls on its proof. After admission, we help you submit it on time and keep the supporting documents ready for the committee of creditors.
Track the process or the settlement
We follow each hearing and deadline. If the company settles, we prepare the papers for withdrawal under Section 12A.
Timelines
10 days after the demand notice
The company has 10 days under Section 8 to pay or to show a pre-existing dispute. After that, the operational creditor can file under Section 9.
14 days to decide
The NCLT must admit or reject the application within 14 days. If the application is incomplete, the applicant gets 7 days to correct it.
180 plus 90 days, 330 at the outside
The resolution process runs 180 days. One extension of up to 90 days needs 66% of the committee’s votes. Section 12 caps the total at 330 days.
What happens if you delay or choose the wrong route
The claim can become time-barred
An insolvency application must be filed within limitation.
The application can be rejected
A disputed operational debt or an uncorrected defect leads to rejection. The filing effort is wasted.
A silent company invites a filing
If it neither pays nor shows a dispute within 10 days, the creditor can file. Reply on time, with documents.
Frequently asked questions
Who can start insolvency proceedings against a company?
Three kinds of applicant can: a financial creditor under Section 7, an operational creditor under Section 9 and the company itself under Section 10. The default must be at least ₹1 crore for most cases. We help you work out which section applies to your debt.
What is the minimum default for an IBC application?
₹1 crore, under Section 4 as notified on 24 March 2020. It was ₹1 lakh before that. For the pre-packaged route for MSME debtors under Chapter III-A, the notified minimum is ₹10 lakh. A debt below the threshold needs a different remedy, such as a suit or the MSME route.
How does an operational creditor start?
By serving a demand notice under Section 8 and waiting 10 days. If the company pays nothing and raises no dispute, the creditor files under Section 9 with the invoices, an affidavit that no dispute notice came, and a record of non-payment. The NCLT then has 14 days to decide. The notice is the foundation, so we draft it carefully.
How long does the resolution process take?
The process is meant to finish in 180 days, with one extension of up to 90 days, and Section 12 sets a 330-day outer limit. Admission itself should come within 14 days. The 2026 amendment tightens several steps, so we confirm the timelines in force on the date you file.
What happens when the NCLT admits the application?
A moratorium begins under Section 14, an interim resolution professional takes charge, and creditors submit claims. A committee of creditors is formed and votes on a resolution plan, or on liquidation. If you are a creditor, your claim must reach the professional in the form required. We help assemble it.
Can an admitted application be withdrawn?
Only in narrow cases. Under Section 12A, as amended in 2026, withdrawal is allowed after the committee of creditors is constituted and before the first invitation for resolution plans, with approval of 90% of its voting share. If a settlement looks likely, raise it early, before the process hardens.
What should a company do on receiving a demand notice?
Reply within 10 days. Under Section 8, the company must either pay or bring to the creditor’s notice a dispute that existed before the notice, with supporting records. A prompt reply with documents can stop a Section 9 application from being admitted. We help you check the invoices and draft the response.
Will Taxhint appear before the NCLT or act as insolvency professional?
No. A practising advocate files and argues before the NCLT, and an IBBI-registered insolvency professional runs the process after admission. We prepare the claim, notices, reconciliations and documents, and coordinate with both so you have one point of contact.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
For IBC insolvency services, filing fees before the NCLT are set by the Adjudicating Authority Rules, and we state the exact figure in your quote. Advocate and insolvency professional fees are separate and agreed with them directly.
Ready to begin?
For IBC insolvency services, tell us whether you are the creditor or the company. We will check the threshold, the paper trail and the route.