Legal Service

Corporate & IBC Litigation Practice: Top NCLT & Supreme Court Advocates

The Insolvency and Bankruptcy Code (IBC), 2016, has fundamentally altered the balance of power between creditors and corporate debtors. Whether you are a financial creditor seeking aggressive recovery, an operational creditor demanding unpaid dues, or a suspended board defending against hostile takeovers, we provide formidable advocacy before the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal (NCLAT), and the Supreme Court of India. As a premier corporate litigation firm in Delhi NCR, we navigate the Companies Act, 2013, the IBC, and white-collar defense to protect billion-dollar assets, enforce commercial rights, and execute strategic corporate turnarounds.

Service Overview

Formidable advocacy across NCLT, NCLAT, and the Supreme Court for creditors, boards, and promoters in India's highest-stakes insolvency and company-law disputes.

Corporate insolvency and debt restructuring before NCLT, NCLAT, and the Supreme Court. Financial creditors, operational creditors, boards, and promoters—Section 7/9, CIRP, PPIRP, and Delhi NCR corporate litigation.

Classification of Corporate & IBC Disputes

Corporate and insolvency litigation is primarily categorized by the legal right being enforced and the jurisdiction of the National Company Law Tribunal (NCLT).

Corporate Governance & Management (Companies Act)

Oppression and mismanagement (Sections 241–242): actions by minority shareholders alleging that the company’s affairs are conducted in a manner prejudicial to public interest or the company.
Class action suits (Section 245): recourse for shareholders or depositors to seek damages against the company, directors, or auditors for fraudulent or ultra vires acts.
Rectification of register of members: disputes over illegal transfer, transmission, or omission of names in the company’s share records.

Insolvency and Bankruptcy (IBC)

Corporate Insolvency Resolution Process (CIRP): Financial Creditors (Section 7)—defaults involving financial debt (loans, debentures, or homebuyer payments). Operational Creditors (Section 9)—defaults involving operational debt (goods, services, or employment dues).
Liquidation process: triggered when no resolution plan is approved or assets must be sold to satisfy creditors.
Pre-packaged insolvency (PPIRP): expedited resolution, including for MSMEs, to settle debts before formal admission where appropriate.

Avoidance & Forensic Litigation

Preferential and undervalued transactions: challenging asset transfers to specific parties shortly before insolvency.
Fraudulent and extortionate transactions: identifying and reversing siphoning of funds by management to defraud creditors.

The 2026 Insolvency Landscape: Aggressive Recovery & Promoter Defense

The IBC is not merely a recovery tool; it is a mechanism for corporate reorganization. Current jurisprudence emphasizes holding personal guarantors accountable and executing complex group insolvencies.

Personal guarantor liability: promoters are not fully shielded by the corporate veil—creditors can pursue insolvency against the corporate debtor and invoke personal guarantees against directors, including private assets, consistent with Supreme Court mandates.
Project-wise insolvency (reverse CIRP): in real estate, courts recognize project-wise resolution—we isolate financially healthy projects from distressed ones to avoid unnecessary liquidation of an entire parent company due to one stalled subsidiary.
Pre-packaged insolvency (PPIRP): we advise MSMEs and corporates on pre-pack resolutions so promoters can retain control while restructuring consensually with financial creditors, avoiding the stigma of a public CIRP where the facts support it.

Landmark Jurisprudence & Our Strategic Approach

Discretionary admission of insolvency (Section 7)

Precedent: Vidarbha Industries Power Ltd. v. Axis Bank. The Supreme Court held that NCLT may reject a Section 7 petition by a financial creditor even if default exists, where the corporate debtor is otherwise solvent and viable. We defend viable companies from hostile creditors by distinguishing temporary liquidity stress from true insolvency.

Supremacy of commercial wisdom & CoC approvals

Precedent: Committee of Creditors of Essar Steel v. Satish Kumar Gupta. The commercial wisdom of the Committee of Creditors (CoC) is supreme and generally insulated from judicial second-guessing at NCLT. We represent major voting blocs to advance favourable resolution plans, or dissenting creditors when plans are discriminatory or offend Section 30(2) of the Code.

Operational creditor disputes (Section 9)

Precedent: Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd. To resist Section 9 petitions by vendors or suppliers, we establish a pre-existing dispute as to the quality of goods or services. Rigorous evidence can lead the NCLT to dismiss the insolvency plea and leave the supplier to ordinary civil recovery.

Fraudulent trading & asset tracing (Section 66)

Precedent: Gluckstedt Holdings vs. Resolution Professional. Resolution professionals often pursue suspended directors for preferential, undervalued, defrauding, or extortionate (PUFE) transactions. We provide white-collar defense for promoters—protecting personal property and defending parallel SFIO or Enforcement Directorate exposure where alleged.

The IBC Litigation Lifecycle & Strategic Timelines

The IBC depends on strict time-bound resolution—delay erodes corporate value. Our interventions are timed to preserve leverage at each stage.

Demand notice and filing (roughly 14–30 days): for operational creditors, the process begins with a strict 10-day demand notice (Forms 3/4). If unpaid, we file a Section 9 petition at NCLT.
The Section 14 moratorium (immediate shield): on admission, NCLT imposes an absolute moratorium—halting civil suits, SARFAESI actions, and asset seizures. We use this strategically to give distressed companies breathing room from aggressive lenders when appropriate.
The CIRP mandate (330 days): CIRP must conclude within 330 days—we manage the lifecycle from IRP appointment, CoC constitution, expressions of interest, through resolution plan approval.
NCLAT / Supreme Court appeals (urgent listings): when an adverse NCLT order threatens core commercial interests, our Delhi-based AORs pursue urgent mentions and interim stays at NCLAT and the Supreme Court within roughly 48–72 hours.

Our Track Record in Corporate Litigation

Multi-crore debt resolution: represented a consortium of banks (CoC) in approving a ₹1,500 crore resolution plan for a distressed manufacturing conglomerate, maximizing recovery value.
Promoter defense: defended suspended directors of a major infrastructure firm against a ₹500 crore Section 66 (fraudulent trading) application, demonstrating transactions were in the ordinary course of business.
Real estate reverse CIRP: initiated project-wise insolvency for 500+ homebuyers, bypassing liquidation of the parent developer and securing possession under NCLT supervision.

Frequently Asked Questions

Common questions about corporate & ibc lawyers matters

Can a supplier force my company into bankruptcy over an unpaid invoice?

Yes, if the undisputed defaulted amount is strictly above ₹1 crore. If we demonstrate a documented pre-existing dispute regarding the quality of goods or services before the statutory demand notice, the NCLT may dismiss the petition.

What happens to the board of directors when CIRP begins?

Upon admission of an insolvency petition, the powers of the board are suspended. Management control shifts to the court-appointed Interim Resolution Professional (IRP). We advise promoters on navigating this phase and mitigating personal liability.

Can promoters buy back their own company during insolvency?

Under Section 29A of the IBC, promoters of a defaulting company (NPA) are generally barred from submitting a resolution plan to buy back assets. Exceptions exist for MSMEs. We structure strategies so MSME promoters can lawfully retain control where the law permits.

Can the NCLT override an arbitration agreement?

Once the Section 14 moratorium is declared, parallel legal proceedings—including ongoing arbitrations and execution of arbitral awards—are generally prohibited against the corporate debtor.