Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Creditor law in Bengaluru, India, revolves around the rules and legal obligations set up to protect the rights of creditors while ensuring debtors honor their financial obligations. It leans on acts such as the Insolvency and Bankruptcy Code (IBC) 2016, which provides a consolidated framework for resolving insolvency and bankruptcy matters. Enforcement of security interest and recovery of debt owed to any bank or financial institution is defined under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
Dealing with complex bankruptcy procedures, debt recoveries, and managing the legal framework around enforcement of security interests can be challenging without a legal professional's help. If you are a creditor finding difficulty in recovering your dues or if you are entangled in an insolvency issue, seeking a competent lawyer can enable you to navigate the legal hurdles. Legal advice can also be crucial when drafting contracts with legally compliant clauses that protect your rights as a creditor in any transaction.
Key aspects of local laws with relevance to creditors in Bengaluru include the Insolvency and Bankruptcy Code, 2016, which provides a time-bound way to resolve insolvency and recover dues, and SARFAESI Act, 2002, empowering banks and financial institutions for non-judicial enforcement of security interest. Additionally, the Debt Recovery Tribunals established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, provide another avenue for the expedited recovery of debts by banks and financial institutions.
The IBC is a unified law that consolidates the existing framework by creating a single law for insolvency and bankruptcy in India, including Bengaluru. The Code offers a resolution process that is speedy and aids in promoting entrepreneurship, availability of credit, and balancing the interests of all stakeholders.
The SARFAESI Act allows banks and financial institutions to recover their non-performing assets without the court's intervention by allowing them to take possession of the securities given by the borrower and sell them.
Your rights as a creditor can be enforced through legal mechanisms provided by the IBC, SARFAESI Act, and courts of law. However, it is best to consult a lawyer to understand the best approach based on your unique circumstances.
DRTs were set up for facilitating the speedy recovery of debt payable to banks and other financial institutions. They allow for the streamlining of cases and provide for simpler procedures compared to conventional courts.
While you are not legally required to hire a lawyer for insolvency proceedings, owing to the complex nature of the law and procedural complexities, it's advisable to have an expert by your side to help navigate the process more smoothly.
The Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA) websites provide comprehensive information about laws, regulations, and amendments regarding creditor law and insolvency. The National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT) websites also offer useful information and updates.
If you need legal assistance in matters related to creditor law, start by hiring a competent attorney experienced in the field. Research your problems extensively and consult your attorney with a clear understanding of your circumstances. Remember to maintain proper documentation and follow your attorney's advice in navigating this complex domain.
