Insolvency & Debt Resolution Advisory: What It Actually Involves
The Insolvency and Bankruptcy Code, 2016 (IBC) rewired how creditors recover value and how distressed businesses get a second chance. Whether you are an operational creditor owed money by a defaulting customer, a financial creditor sitting on the Committee of Creditors, a corporate debtor facing a resolution process, or a promoter trying to find an exit before matters reach the NCLT — the process is technical, time-bound, and unforgiving of procedural error. At PNPC Global we have advised creditors, debtors, resolution professionals, and prospective resolution applicants across India and the UAE since 1986.
What You're Really Buying
Insolvency and Debt Resolution Advisory covers the full spectrum of guidance a Chartered Accountancy firm provides around the Insolvency and Bankruptcy Code, 2016 — India's unified statute for resolving corporate and individual insolvency. The IBC replaced a fragmented recovery landscape (SICA, the erstwhile BIFR route, and multiple competing recovery statutes) with a single, time-bound framework administered by the Insolvency and Bankruptcy Board of India (IBBI) and adjudicated by the National Company Law Tribunal (NCLT) for corporate persons and the Debt Recovery Tribunal (DRT) for personal guarantors and individuals. At its core, the Code is built on a simple premise: value is preserved better through a time-bound resolution than through prolonged litigation, and a defaulting entity should either be revived under new or restructured ownership or be liquidated in an orderly, transparent manner.
For the full scope, current process and what PNPC includes, see the dedicated Insolvency & Debt Resolution Advisory service page.
When You'd Need This
- You are an operational creditor (vendor, contractor, service provider) with an undisputed debt above the statutory threshold that has gone unpaid despite repeated demand — before filing a Section 9 application
- You are a financial creditor (bank, NBFC, bond/debenture holder, or a company that has extended a loan) evaluating whether to trigger a Section 7 application or join an existing CIRP as a financial creditor
- Your company is showing early signs of financial distress — missed loan covenants, mounting overdue payables, declining cash flow — and you want to explore restructuring, One Time Settlement (OTS), or standstill negotiation before any creditor moves to NCLT
- A Section 8 demand notice or Section 7/9 petition has been filed against your company and you need an immediate assessment of the debt, any pre-existing dispute, and your options to resist admission or negotiate settlement
When It Isn't the Right Fit
- The amount in dispute is genuinely contested on merits (quality of goods, scope of work, contractual breach) rather than a case of simple non-payment — a civil suit or arbitration is the correct forum, and an IBC application in the face of a genuine pre-existing dispute is liable to be rejected under Section 9(5)(ii)(d)
- The default amount does not meet the minimum threshold prescribed under Section 4 of the Code (as notified by the Central Government) — recovery through a money suit, Section 138 of the Negotiable Instruments Act (for cheque dishonour), or the Micro, Small and Medium Enterprises Development Act, 2006 conciliation/arbitration route (for MSME suppliers) may be faster and more proportionate
- You simply want to recover a specific movable or immovable asset (not the entity as a going concern) — the SARFAESI Act, 2002 (for secured creditors of banks/NBFCs) or a suit for recovery may be more direct than a full CIRP
Common Questions
What is the Insolvency and Bankruptcy Code, 2016 in simple terms?
It is a single, unified law that governs how a company (or individual, in specified cases) that cannot pay its debts is either revived under a new resolution plan or wound up in an orderly liquidation. It replaced a fragmented system of multiple recovery laws with one time-bound process, administered by the NCLT for companies and overseen by the Insolvency and Bankruptcy Board of India (IBBI).
Who can file for insolvency resolution (CIRP) against a company?
Three categories: a financial creditor under Section 7 (banks, NBFCs, bondholders, or anyone who has extended a financial debt), an operational creditor under Section 9 (vendors, suppliers, employees, and government dues above the threshold), or the corporate debtor itself under Section 10, filed voluntarily by its own board.
What is the minimum default amount required to file under IBC?
Section 4 of the Code prescribes the minimum amount of default for triggering CIRP, and the Central Government is empowered to notify and revise this threshold by notification. The threshold was significantly raised in 2020. Because this figure is set by government notification and has changed before, we verify the currently applicable threshold against the latest IBBI/MCA notification at the time of filing rather than relying on a fixed number.
Where PNPC Fits In
Insolvency matters move fast and punish procedural error. Speak directly with a PNPC Chartered Accountant — practising since 1986 — before you file, before you respond to a demand notice, or before you vote on a resolution plan. We build the financial case; our empanelled insolvency counsel builds the legal one; together they hold up.
PNPC Global has advised Chennai, Bangalore and Hyderabad businesses since 1986. Explore the full Corporate Finance practice for related services, or go straight to the Insolvency & Debt Resolution Advisory page for specifics.
Rates, thresholds and filing dates are set by the relevant authority and revised periodically. Treat anything numeric here as "ask PNPC for the current figure," not as a quoted fact.