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Restructuring and insolvency law in Guwahati, as in the rest of India, is designed to assist financially distressed companies, their creditors, and stakeholders in finding solutions when an entity faces significant financial challenges. The legal framework provides processes for reorganizing a business, resolving debts, or, if necessary, liquidating assets in an orderly manner. The majority of these proceedings are governed by national laws such as the Insolvency and Bankruptcy Code, 2016, with state-specific practicalities observed within the court system in Assam and Guwahati. The goal is to either enable the entity to continue as a going concern, maximize asset value, or ensure efficient resolution of bad debts.
Legal assistance is crucial in restructuring and insolvency matters due to the complexity involved in navigating the law and protecting your interests. Common situations where legal help is often needed include:
Engaging a lawyer ensures that your rights are protected, legal procedures are properly followed, and strategic advice is provided during negotiations and court proceedings.
The primary legislation governing restructuring and insolvency in Guwahati is the Insolvency and Bankruptcy Code, 2016 (IBC). The Code is a comprehensive statute that covers:
The NCLT Guwahati Bench oversees corporate insolvency cases for companies registered in Assam and neighboring states. Other relevant laws include the Companies Act, 2013 and certain provisions under the Recovery of Debts and Bankruptcy Act, 1993. It is important to be aware of local rules and practices of the NCLT Guwahati, as well as state-specific economic and commercial realities that may influence the proceedings.
Insolvency refers to a situation where a person or company is unable to pay its debts when they fall due. Bankruptcy, on the other hand, is a legal declaration of insolvency for individuals. Companies do not ‘go bankrupt’ but they can undergo insolvency proceedings leading to restructuring or liquidation.
The Insolvency and Bankruptcy Code, 2016 (IBC) is the main law. Proceedings are typically handled by the NCLT Guwahati for companies registered in Assam.
If your business is unable to service its debts, facing continuous losses, or creditors have initiated legal action, it is advisable to consult a restructuring and insolvency lawyer to evaluate your options under the IBC.
Yes, a financial or operational creditor can initiate a corporate insolvency resolution process against a company at the NCLT Guwahati if debts are overdue above a specified threshold.
The NCLT acts as the adjudicating authority for corporate insolvency matters, including admitting applications, appointing insolvency professionals, and approving resolution plans or liquidation.
A moratorium is a legally imposed pause on all legal proceedings, enforcement actions, and recovery against the debtor company once insolvency proceedings are admitted, providing breathing space for a resolution plan to be considered.
Insolvency professionals are licensed intermediaries appointed to manage the resolution or liquidation process, oversee the debtor’s assets, and ensure legal compliance during proceedings.
Yes, companies may restructure their debts out of court through settlement with creditors or via pre-packaged insolvency proceedings, but legal advice is essential to ensure enforceability and compliance with the law.
Employees are entitled to wages and compensation as per labor laws and receive a priority over some other creditors in the distribution of assets during liquidation, as per IBC.
The IBC prescribes a time-bound process: typically 180 days for resolution, extendable by 90 days in certain cases. Actual timelines may vary based on the complexity and local case load at the NCLT Guwahati.
For reliable information and support concerning restructuring and insolvency in Guwahati, consider the following:
If you believe you need legal help in a restructuring or insolvency matter in Guwahati, consider these steps:
Timely action and professional legal support can help safeguard your interests, whether you are facing financial distress or dealing with a debtor. Do not hesitate to reach out to a legal professional as early as possible to explore the best path forward.
