Best Bankruptcy Lawyers in Surendranagar

About Bankruptcy Law in Surendranagar, India

People in Surendranagar often use the word bankruptcy to describe more than one legal process. In India, corporate insolvency for companies and LLPs is governed by the Insolvency and Bankruptcy Code, 2016. That process is called corporate insolvency resolution or liquidation and it is handled by the National Company Law Tribunal. For individuals and partnership firms, two systems can apply. Personal guarantors to corporate debtors are covered under the Insolvency and Bankruptcy Code and other individuals and partnerships usually proceed under the Provincial Insolvency Act, 1920, which continues to operate where the Insolvency and Bankruptcy Code has not been notified for them. Residents and businesses in Surendranagar fall under the jurisdiction of Gujarat forums. Corporate cases and personal guarantor cases are heard by the National Company Law Tribunal Ahmedabad Bench. Most individual insolvency cases that are not under the Insolvency and Bankruptcy Code are filed in the Surendranagar District Court or other local civil courts as directed by the state judiciary.

The purpose of these laws is to provide a time bound, court supervised process to deal with financial distress. Outcomes can include a resolution plan that restructures debt, liquidation or sale of assets for companies, or discharge and composition for individuals. A legal moratorium can stop suits and recoveries while the case is pending, which gives space to negotiate and to protect the value of the estate for all creditors.

Why You May Need a Lawyer

A lawyer helps you decide whether a formal insolvency or bankruptcy process is right for you, or whether a negotiated settlement, one time settlement with a lender, or a payment plan is better. You may need professional help if you face persistent recovery calls, a Section 138 cheque bounce case related to business debt, a SARFAESI possession notice on secured property, or a winding up or insolvency notice from a creditor. Companies need counsel to prepare a compliant application, manage claims, and interact with the interim or resolution professional. Individuals need guidance on where to file, how to claim statutory exemptions for essential assets, and how to avoid allegations of undervalued or preferential transactions. Personal guarantors often need urgent advice because their liability can continue even if the company is in insolvency. A local lawyer familiar with the Ahmedabad benches and with Surendranagar courts can keep you within deadlines, prepare evidence, represent you at hearings, and negotiate with banks and other creditors.

Local Laws Overview

Jurisdiction in Surendranagar and Gujarat is split by the type of debtor. Corporate debtors and personal guarantors to corporate debtors use the National Company Law Tribunal Ahmedabad Bench. Appeals go to the National Company Law Appellate Tribunal and then the Supreme Court when permitted. Individual and partnership cases that are not under the Insolvency and Bankruptcy Code usually use the Provincial Insolvency Act, 1920 in the Surendranagar District Court or the designated civil court. Secured creditor enforcement outside insolvency is generally under the SARFAESI Act, with borrower remedies before the Debts Recovery Tribunal Ahmedabad.

Minimum default for a corporate insolvency application is commonly one crore rupees. Time limits are strict. The Insolvency and Bankruptcy Code targets completion within 180 days, extendable within a statutory outer limit that includes litigation time. A moratorium typically starts on admission and stops suits, enforcement, and security enforcement against the corporate debtor. A similar stay may be available to individuals once adjudged insolvent under the Provincial Insolvency Act. MSME borrowers may consider the pre packaged insolvency resolution process, which is a debtor in possession style framework available to eligible MSMEs for notified default bands. Check the latest government notification for the current eligibility and default amounts.

Claim ranking follows a statutory waterfall. After insolvency and liquidation costs, secured creditors and certain workmen dues come first, then employee wages, then unsecured financial creditors. Government dues rank below unsecured financial creditors. Shareholders are last. For individuals, the court supervises the administration of the estate, deals with objections by creditors, and can grant a discharge that releases the debtor from provable debts except for specified exclusions.

Local practice points matter. Corporate filings are in English and use National Company Law Tribunal formats. Individual insolvency filings in Surendranagar courts may be in Gujarati or English based on court rules, with certified translations if needed. Stamp duty and registration under Gujarat laws may apply to security documents, deeds of assignment, and instruments implementing a resolution plan. Limitation rules are important. Most debt claims carry a three year limitation from default, subject to acknowledgments and part payments, and the same principle is generally applied to insolvency triggers.

Frequently Asked Questions

What is the difference between insolvency and bankruptcy in India

In common speech people use both words, but under Indian law insolvency is the state of financial distress and the process to resolve it. For companies, the process is corporate insolvency resolution and liquidation under the Insolvency and Bankruptcy Code. Bankruptcy is a term that the Code reserves for individuals and partnership firms. Individuals in Gujarat often proceed under the Provincial Insolvency Act when the Insolvency and Bankruptcy Code is not notified for them.

Which forum handles a Surendranagar companys insolvency case

The National Company Law Tribunal Ahmedabad Bench handles corporate insolvency resolution and liquidation for Gujarat companies, including those based in Surendranagar. Appeals go to the National Company Law Appellate Tribunal.

Can an individual in Surendranagar file for bankruptcy

Yes, but the correct path depends on your profile. If you are a personal guarantor to a corporate debtor, your case proceeds under the Insolvency and Bankruptcy Code, usually before the National Company Law Tribunal Ahmedabad Bench. If you are not a personal guarantor to a corporate debtor, you usually proceed under the Provincial Insolvency Act in the Surendranagar District Court or another designated civil court.

What is the minimum default to start a corporate insolvency case

The notified threshold for initiating corporate insolvency by a creditor is commonly one crore rupees of default. The threshold for MSME pre pack cases and for certain categories can be different based on current notifications. Always check the latest notification before filing.

Will the process stop banks from taking my property

On admission of a corporate insolvency case, a moratorium usually stops new suits and most enforcement actions against the corporate debtor. For individuals, once adjudged insolvent, the court controls the estate and there are protections for essential assets. Secured creditors can still have rights over secured property, subject to court supervision and the statutory process. A lawyer can assess if your home or tools of trade qualify for protections.

How long does a corporate insolvency case take

The Insolvency and Bankruptcy Code sets a 180 day period, with limited extensions and a statutory outer limit that includes time in litigation. Real timelines vary with complexity, number of creditors, and court schedule at the National Company Law Tribunal Ahmedabad Bench.

What happens to directors and promoters during corporate insolvency

On admission, control of the company shifts to an interim resolution professional and then to a resolution professional under the supervision of a committee of creditors. Promoters and directors must cooperate, provide records, and attend meetings if required. They cannot manage day to day operations unless the framework allows it, such as in an MSME pre pack where the debtor remains in possession subject to creditor oversight.

Will bankruptcy or insolvency wipe out all my debts

Not always. For companies, debts are resolved as per the approved resolution plan, or satisfied through liquidation distributions according to the statutory waterfall. For individuals, a discharge order can release provable debts, but certain obligations can survive, such as fines, penalties, and debts incurred by fraud. Each case is fact specific.

Can I be pursued as a personal guarantor if the company is in insolvency

Yes, a personal guarantor can be pursued. Proceedings against personal guarantors are handled under the Insolvency and Bankruptcy Code with the same National Company Law Tribunal that handles the company. Liability under a guarantee can continue even if the company is undergoing resolution or liquidation, subject to the result of the process and the terms of the guarantee.

Are there alternatives to a formal bankruptcy case

Yes. Options include one time settlements with banks, restructuring under RBI frameworks, private standstill and inter creditor agreements for lenders, and settlements before Lok Adalat for suitable cases. Early negotiation with creditors can preserve business value and reduce legal risk. A lawyer can help you evaluate the costs and benefits versus a formal filing.

Additional Resources

National Company Law Tribunal Ahmedabad Bench handles corporate insolvency and personal guarantor cases for Gujarat.

Debts Recovery Tribunal Ahmedabad hears borrower applications under the SARFAESI Act and appeals under the Recovery of Debts and Bankruptcy framework.

Surendranagar District Court handles individual insolvency matters under the Provincial Insolvency Act for residents in its jurisdiction.

Insolvency and Bankruptcy Board of India is the national regulator for insolvency professionals, information utilities, and the insolvency ecosystem.

Insolvency professional agencies such as those of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, and Indian Institute of Insolvency Professionals of ICAI enroll and regulate insolvency professionals.

Registrar of Companies Gujarat and the Official Liquidator attached to the Gujarat High Court are relevant for company filings and legacy liquidations outside the Insolvency and Bankruptcy Code.

Gujarat State Legal Services Authority and the Surendranagar District Legal Services Authority can guide eligible persons on free legal aid, mediation, and Lok Adalat options.

MSME facilitation councils and MSME Development offices in Gujarat can help eligible MSMEs with delayed payments and can provide guidance on government schemes that may reduce the need for a formal insolvency filing.

Next Steps

Assess your position. List all creditors, amounts due, dates of default, and whether any security or guarantees are involved. Gather financials, bank statements, tax returns, loan agreements, and notices received. For companies, compile the last three years of audited financial statements and statutory registers. For individuals, prepare an accurate statement of affairs and a list of assets and liabilities.

Speak to a local lawyer experienced in insolvency. Ask about forum choice, eligibility, timelines, costs, and likely outcomes. If you are an MSME, ask if a pre packaged insolvency is suitable. If you are a personal guarantor, seek advice quickly because timelines can be short.

Consider non court options first. Explore restructuring, a one time settlement, or mediated settlements. If you receive a SARFAESI notice, note the timelines to approach the Debts Recovery Tribunal Ahmedabad.

Avoid risky asset transfers. Do not transfer assets for inadequate value or prefer one creditor over others before a potential filing. Such transactions can be challenged and reversed. Take advice before selling or encumbering assets.

Prepare for compliance. Corporate applicants will interact with an interim resolution professional or resolution professional and must cooperate fully. Individuals must attend court when called, hand over books and property of the estate, and comply with any restrictions placed by the court.

Use legal aid if eligible. Contact the Surendranagar District Legal Services Authority to check eligibility for free legal representation and mediation support.

Keep records of creditor interactions. Document calls, emails, and notices. If you face harassment, inform your lawyer and consider a complaint under the relevant guidelines and laws.

Stay updated. Thresholds, procedures, and notifications can change. Your lawyer can check the latest circulars and orders of the National Company Law Tribunal Ahmedabad Bench, the Debts Recovery Tribunal Ahmedabad, and the Insolvency and Bankruptcy Board of India before you file.