Insolvency Professional Services
As per the Insolvency and Bankruptcy Code, 2016 (the Code), an insolvency professional (IP) means an eligible person:
a. enrolled with an insolvency professional agency (IPA) as its member and,
b. registered with Insolvency and Bankruptcy Board of India (IBBI/the Board) as an insolvency professional (IP).
Role of Insolvency Professional
1. Management of the affairs of the Corporate Debtor - Section 17 of the Code, 2016 provides for vesting of the management of the affairs of the corporate debtor in the hands of interim resolution professional, which is natural consequence of a creditor in-possession regime. The concept of ‘debtor-possession’ implies that the debtor continues to remain in possession of the management of the entity during the resolution process.
2. Management of the entity as “going concern” - The Code emphasis that the interim resolution professional shall manage the operations of the corporate debtor as a “going concern” – section 20. “Going concern” refers to an enterprise continuing in operation for the foreseeable future. It is assumed that the enterprise has neither the intention nor the necessity of liquidation or of curtailing materially the scale of the operations. The provision sets out the guiding principle for the interim resolution professional or the resolution professional managing the corporate debtor during the resolution process. The Interim Resolution Professional/Resolution Professional, therefore, shall administer the company “as is”, without making any material alterations in the scale of operations of the company or selling off material value of its assets which may endanger any possibility of the revival of the corporate debtor.
3. Custody of the assets of the corporate debtor - Section 18 requires the interim resolution professional to take control and custody of any asset over which the corporate debtor has ownership rights and section 20 obliges the interim resolution professional to make every endeavor to protect and preserve the value of the property of the corporate debtor. Again, section 25 states that it shall be the duty of the resolution professional to preserve and protect the assets of the corporate debtor, including the continued business operations of the corporate debtor. The Code has also amended section 429 (1) of the Companies Act, 2013 empowering the NCLT to pass instructions to executory authorities for taking control and custody of assets, in case the RP is facing difficulties in doing so.
4. Preparation of Information Memorandum - Section 29 requires that the Resolution Professional shall prepare an Information Memorandum in such form and manner containing such relevant information as may be specified by the Board for formulating a Resolution Plan. The CIRP Regulations, however, require that certain minimum information shall be provided to each member of the committee of creditors and any potential resolution application before the first meeting of the committee of creditors. This calls for preliminary preparation of information memorandum by the IRP. The Information Memorandum shall contain details on the basis of which a resolution plan may be formulated. Regulation 36 (2) of the CIRP Regulations lists out the contents of the information memorandum.
5. Facilitating Resolution Plan - The primary goal of Insolvency Professional is to assess the financial position of the Corporate Debtor. In several instances, they try their best to save their business.
Service Area
We provide strategic and qualitative advisory services to all our clients from domestic to international organizations, small, medium and large sized enterprises, assisting them with their incorporation and quality management services so they can establish their business successfully globally. To help them deal with their tax issues, financial and legal requirements we provide all support for post incorporation services, so they are able to run their business seamlessly. We are based at New Delhi and Faridabad, but our wings are spread to serve clients across the globe. Customer Satisfaction, Quality of Service and our Turnaround time are the drivers of our enthusiasm and success. We are continuously serving our client at Faridabad, Delhi, Gurgaon (Gurugram), Noida (Gautam Budh Nagar), Sonipat, Panipat, Palwal, Jind, Karnal, Meerut, Kolkata, Mumbai (Bombay), Pune, Bangalore, Nasik, Aurangabad, Nagpur, Ludhiana, Amritsar, Mohali, Hyderabad, Kanpur, Agra ,Rudrapur, Haridwar, Jamshedpur, and many other Industrial Areas.