Best Restructuring & Insolvency Lawyers in Raurkela

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LAW CHAMBER OF ADVOCATE RAJVEER SINGH

LAW CHAMBER OF ADVOCATE RAJVEER SINGH

15 minutes Free Consultation
Raurkela, India

Founded in 2016
10 people in their team
English
Hindi
Welcome to the Law Chamber of Advocate Rajveer Singh, Advocate Rajveer Singh is an Advocate and Registered Trademark Attorney with over 8 years of experience in Supreme Court of India, High Courts and District Courts. With a robust practice spanning multiple domains, we offer comprehensive...
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About Restructuring & Insolvency Law in Raurkela, India

Restructuring and insolvency law in Raurkela, India is primarily governed by national legislations such as the Insolvency and Bankruptcy Code, 2016. The city’s commercial growth and the presence of several small and medium enterprises make restructuring and insolvency issues increasingly relevant. The legal processes help companies or individuals facing financial distress by providing a framework for resolution, asset maximization, and debt recovery, ensuring fair treatment for both debtors and creditors. The aim is to revive viable businesses, liquidate non-viable assets, and protect stakeholder interests promptly and efficiently.

Why You May Need a Lawyer

Legal matters involving restructuring and insolvency can be complex and time sensitive. You may require the guidance of a lawyer in situations such as:

  • Facing mounting debts or inability to repay loans
  • When your business is unable to meet its financial commitments
  • When a creditor initiates insolvency proceedings against you or your company
  • To restructure your existing debt or negotiate with creditors and financial institutions
  • Managing complex legal filings, representation in tribunals, or court appearances
  • Assisting with voluntary liquidation, winding up, or resolution proceedings
  • Navigating labor, tax, and regulatory implications of insolvency
  • Advising on implications of the Insolvency and Bankruptcy Code, 2016
  • Protecting personal assets or company assets from claims and attachment
  • Helping with legal compliance in case of cross-border insolvency matters
A legal professional ensures that your rights and interests are safeguarded, and helps achieve the most favorable outcome under the law.

Local Laws Overview

In Raurkela, as elsewhere in India, restructuring and insolvency are governed by the federal Insolvency and Bankruptcy Code, 2016 (IBC). This code applies to companies, partnerships, and individuals. Key elements include:

  • Initiation of Proceedings: Creditors or debtors can initiate insolvency resolution at the National Company Law Tribunal (NCLT), which covers cases in Odisha, including Raurkela.
  • Moratorium: The IBC provides for a moratorium period that halts all legal actions against the debtor during the insolvency process.
  • Resolution Process: The Corporate Insolvency Resolution Process (CIRP) seeks to either rescue the business or ensure an orderly liquidation, with strict timeframes for completion.
  • Role of Insolvency Professionals: Registered professionals manage the insolvency process, conduct meetings, and maximize asset value.
  • Committee of Creditors: Creditors decide the fate of the debtor based on plans submitted by resolution applicants.
  • Liquidation: If resolution is not possible, the debtor's assets are sold to repay creditors in a specific order of priority.
Local courts and the NCLT bench covering Odisha have the authority to adjudicate insolvency matters in Raurkela. Additionally, state-specific nuances such as local taxes and stamp duties may apply during asset sales or restructuring.

Frequently Asked Questions

What is insolvency and how does it differ from bankruptcy?

Insolvency means being unable to pay your debts as they become due. Bankruptcy refers to the formal legal process or status declared by a court when an individual or company is insolvent. In India, insolvency for companies is addressed through the IBC, while bankruptcy usually refers to individual or partnership firms.

Who can initiate insolvency proceedings in Raurkela?

Both creditors (financial and operational) and the debtor company itself can initiate insolvency proceedings by applying to the National Company Law Tribunal (NCLT) with jurisdiction over Raurkela.

What happens once insolvency proceedings are initiated?

A moratorium is imposed that prevents legal action against the debtor and an Insolvency Professional is appointed to manage the process. Creditors form a committee to decide on resolution or liquidation.

Can individuals file for insolvency in Raurkela?

Yes, individuals and partnership firms can file for insolvency under the provisions of the IBC, though much of the process and focus is on corporate insolvency currently.

How long does the insolvency resolution process take?

The Corporate Insolvency Resolution Process (CIRP) is designed to be completed within 180 days, extendable by 90 days, making a maximum of 270 days, but timelines may vary depending on circumstances and court orders.

What happens to the employees of a company undergoing insolvency?

Employees have claim over unpaid wages and dues, which are prioritized in the distribution of proceeds. Whether they continue employment depends on the resolution plan or liquidation outcome.

Will my personal assets be at risk if my company is declared insolvent?

Personal assets are usually protected unless personal guarantees were given for company loans or fraud and misconduct are proven against the directors or partners.

Can a small business or MSME file for insolvency?

Yes, micro, small, and medium enterprises (MSMEs) can file for insolvency. There are certain relaxations and a fast-track resolution process for MSMEs under the IBC.

How does restructuring differ from liquidation?

Restructuring aims to revive the business by reorganizing its debts and operations, often allowing the company to continue. Liquidation means selling off assets to repay creditors, leading to closure of the business.

Do I need to appear in court if insolvency proceedings are initiated?

Generally, your legal representative or Insolvency Professional will handle most appearance matters, but you may need to attend key meetings or hearings if required by the tribunal.

Additional Resources

If you need further information or support on restructuring and insolvency matters in Raurkela, consider reaching out to:

  • National Company Law Tribunal (NCLT), Cuttack Bench: Handles insolvency and company matters for Odisha, including Raurkela
  • Insolvency and Bankruptcy Board of India (IBBI): The regulatory authority for insolvency professionals, companies, and adjudicating authorities
  • Institute of Chartered Accountants of India (ICAI) - Odisha Chapter: Source for registered insolvency professionals and advisors
  • Local Bar Associations: They can help connect you with experienced restructuring and insolvency lawyers in Raurkela
  • District Industries Centre, Raurkela: Offers guidance and support to local businesses, including those in financial distress
  • Registrar of Companies (ROC), Odisha: Maintains company records and supports compliance-related matters

Next Steps

If you believe you need legal assistance with restructuring or insolvency in Raurkela, consider the following steps:

  1. Assess your situation carefully, noting all debts, assets, and liabilities.
  2. Prepare a list of creditors, loan agreements, and relevant documents.
  3. Consult a qualified restructuring and insolvency lawyer experienced in Raurkela to discuss your options and rights under the law.
  4. Stay informed about your legal responsibilities and deadlines to avoid penalties or adverse outcomes.
  5. If a resolution process is initiated, cooperate fully with your legal advisor and the insolvency professional appointed.
  6. If considering voluntary restructuring, work with your lawyer to negotiate terms with creditors and formalize agreements.
  7. Monitor communications from courts or tribunals closely and respond promptly through your legal counsel.
Taking timely and informed action can help you manage the situation effectively and protect your personal and business interests.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.