Best Restructuring & Insolvency Lawyers in Patna

About Restructuring & Insolvency Law in Patna, India

Restructuring and insolvency law aims to provide legal solutions for financially distressed businesses and individuals unable to meet their debt obligations. In Patna, as in the rest of India, this legal area has gained significance with the introduction of the Insolvency and Bankruptcy Code (IBC), 2016. The IBC governs insolvency resolution, liquidation, and restructuring of companies, partnership firms, and individuals. The goal is to help viable businesses continue, efficiently resolve unviable cases, and balance the rights of creditors and debtors. Patna, being a major commercial hub in Bihar, sees frequent cases involving local businesses and individuals that face financial challenges, making the understanding of restructuring and insolvency law crucial for economic stability and growth in the region.

Why You May Need a Lawyer

Legal support is essential in restructuring and insolvency matters due to the complexity of the laws and the high stakes involved. Here are some common situations where you might require legal help:

• Your business is facing mounting debts and creditors are threatening legal action.
• You are a creditor whose dues have not been paid by an insolvent company or individual.
• You need to file for insolvency or bankruptcy relief under Indian law.
• You want to participate in a corporate insolvency resolution process as an operational or financial creditor.
• Your assets are at risk of liquidation due to outstanding debts.
• You require assistance with negotiating with banks, creditors, or other stakeholders for restructuring your financial obligations.
• You have been served with a legal notice regarding insolvency proceedings and need representation in court or before the National Company Law Tribunal (NCLT).
• You want to understand your rights and obligations as an employee, supplier, or partner of an insolvent entity.
• You need guidance on compliance with the Insolvency and Bankruptcy Code and related local regulations in Patna.
• You require support in devising and implementing a restructuring or recovery plan for your business.

Local Laws Overview

The legal framework for restructuring and insolvency in Patna is governed primarily by the national Insolvency and Bankruptcy Code, 2016, which applies uniformly across India. However, local aspects can come into play, such as:

• The National Company Law Tribunal (NCLT), Patna Bench adjudicates corporate insolvency matters within its jurisdiction in Bihar, including Patna.
• Local civil courts may deal with individual insolvency cases, particularly where assets or interested parties are located in Patna.
• Bihar-specific rules and procedures sometimes affect the execution of insolvency orders, particularly with regards to property attachment and liquidation.
• Patna has legal practitioners experienced in both national and local application of insolvency laws, who can assist in navigating the procedural nuances of the area.

Key aspects relevant in Patna include strict timelines for resolution under the IBC, the role of interim resolution professionals, opportunities for restructuring agreements, and the rights of creditors and debtors during insolvency proceedings.

Frequently Asked Questions

What is the difference between insolvency and bankruptcy?

Insolvency is a financial state where an individual or company cannot meet its debt obligations as they fall due. Bankruptcy is a legal declaration of insolvency by a court, leading to actions like liquidation or reorganization under the law.

Who can initiate insolvency proceedings in Patna?

Financial creditors, operational creditors, or the debtor company or individual themselves can initiate insolvency proceedings in Patna under the Insolvency and Bankruptcy Code.

Which authority handles corporate insolvency cases in Patna?

Corporate insolvency cases in Patna fall under the jurisdiction of the National Company Law Tribunal (NCLT), Patna Bench.

How long does the insolvency resolution process take?

The IBC mandates a maximum of 180 days for the resolution process, extendable by 90 days in special cases, subject to approval by the tribunal.

What are the consequences for a company declared insolvent in Patna?

An insolvent company may undergo restructuring through a resolution plan or, if not viable, be liquidated. The company’s assets are distributed to creditors as per the IBC priority list.

Can individuals in Patna file for bankruptcy?

Yes, individuals can file for insolvency under provisions laid out for personal insolvency in the IBC, subject to the thresholds and procedures specified by law.

What is the role of a Resolution Professional?

A Resolution Professional oversees the insolvency proceedings, manages the debtor’s assets, conducts creditor meetings, and facilitates the formulation and implementation of a resolution plan.

Do creditors have any say in the restructuring process?

Yes, creditors form a Committee of Creditors (CoC) which has significant power to approve, reject, or modify resolution plans during the insolvency process.

How are disputes resolved if there is disagreement during insolvency proceedings?

Disputes are adjudicated by the NCLT for corporate cases and by civil courts or the Debt Recovery Tribunal for individual and partnership matters. Legal representation is crucial for effectively presenting your case.

Do local laws in Patna affect national insolvency proceedings?

While the IBC applies nationwide, local court procedures and the specific approach of the NCLT Patna Bench can affect timelines and filing requirements. Local legal counsel can help navigate these nuances.

Additional Resources

If you are seeking information or assistance regarding restructuring and insolvency in Patna, the following resources and organizations can help:

• National Company Law Tribunal (NCLT), Patna Bench - For corporate insolvency cases
• The Insolvency and Bankruptcy Board of India (IBBI) - Regulates and oversees insolvency professionals and proceedings
• Local Bar Associations in Patna - For legal referrals and finding experienced insolvency lawyers
• District Civil Courts, Patna - For matters involving individual insolvency and associated civil cases
• Bihar State Legal Services Authority (BSLSA) - Provides information on free or subsidized legal aid
• Government of Bihar, Department of Law - For regional rules and public notices related to insolvency

Next Steps

If you or your business in Patna is facing financial distress or you are dealing with insolvency matters involving local entities, it is important to act promptly and seek legal guidance. Here are some steps you can take:

• Assess your financial situation and gather all relevant documents, including debts, assets, agreements, and notices received.
• Consult a qualified restructuring and insolvency lawyer in Patna who understands local practices and national insolvency laws.
• Discuss your options openly - from negotiation to formal insolvency proceedings or restructuring plans.
• If you are a creditor, determine your eligibility and prepare to submit claims through the insolvency process.
• Attend initial consultations to better understand your rights and the most suitable course of action.
• Follow due process and meet all deadlines for filings and responses as required by the NCLT or other relevant bodies.
• Stay informed about changes in laws and procedures by engaging with professional organizations or legal advisors.

Remember, timely legal advice can make a significant difference in the outcome of restructuring and insolvency proceedings. Reaching out to a local legal expert is often the most effective first step.