Unpaid invoices, loan defaults and financial distress do not all require the same legal response. Kothari & Jain advises creditors, businesses and guarantors on assessing insolvency-related options, responding to proceedings and preparing the records needed for an informed decision. The initial review considers both the legal route and the commercial objective.
How we can assist
- Assessment of creditor and debtor positions before an insolvency application.
- Review of debt documents, default records, notices and disputed claims.
- Preparation and review of claims in an existing insolvency process.
- Responses and representation in relevant NCLT proceedings.
- Advice concerning personal guarantees, restructuring discussions and interactions with insolvency professionals.
- Legal review of process documents, proposed settlements and resolution-related issues.
Start with the debt and the process stage
We examine who owes the debt, the nature of the obligation, when payment became due, whether there is a dispute and what enforcement steps have already occurred. The existence of a guarantee, security, settlement or earlier acknowledgment can materially affect the analysis.
For an ongoing process, the public announcement, appointed professional’s communications, claim status and tribunal orders should be reviewed together. Acting on an old summary or an incomplete notice can lead to missed procedural steps. The IBBI statutory framework and its current circulars are reference points for checking the applicable requirements.
An insolvency application should be considered against its consequences for the enterprise and all relevant stakeholders. We assess whether negotiation, another recovery remedy or participation in an existing process better serves the client’s position. No assessment can promise admission of a case, acceptance of a claim or a particular recovery.
Documents for review
Bring the loan or supply agreement, purchase orders, invoices, delivery evidence, account statements, security and guarantee documents, notices, replies and existing case papers. Include financial statements where relevant and a dated chronology of default and subsequent payments. Tell us whether any insolvency announcement or order has already been issued.
Common questions
Can every unpaid invoice become an insolvency case?
No. Eligibility, the applicable debt and default requirements, limitation, disputes and procedural conditions must be assessed. An invoice alone is not a complete legal assessment.
Is a personal guarantee the same as a company obligation?
No. The guarantee terms and the applicable legal process require their own review. Do not assume that a step involving the company automatically determines the guarantor’s position.
Can I submit a claim after learning about the process late?
Share the announcement and any orders promptly. The available course depends on the relevant regulations, the stage reached and the facts explaining the delay. A late claim should not be assumed to be automatically accepted or automatically impossible.
Discuss the next step
To discuss the scope of assistance and arrange a consultation, contact the firm or call +91 87936 60616 or +91 78877 18191.