Insolvency and Bankruptcy services are emerging after the introduction of Insolvency Bankruptcy Act 2019 where the valuation of the company is done through Insolvency professional who deals with mergers & Acquisition, dispute resolution, Insolvency litigation, cash flow management, financial reporting, bank lending, etc. Some of the valuations are listed below:
- Liquidations by Official Liquidator
- Asset Reconstruction Companies
- Debt Recovery Tribunal
- Valuation under SARFAESI Act
Role of Insolvency and Bankruptcy
- Insolvency and Bankruptcy consulting services are chiefs in valuation by National Company Law Tribunal.
- It is technical and provides refinement with new laws and regulations.
- Insolvency professionals are experienced one having deep knowledge of Domain
- Professionals adopt value calculation method as per international standard.
- Combines and Modify laws related to insolvency.
- Revival and resolution in a time-bound manner to increase the value of debtor’s assets
Who is Insolvency Professional?
Insolvency professional employ the valuer in a way to calculate the company assets before the CIRP process comes into being. One Resolution process is deciding meanwhile the Insolvency professional will evaluate the company as per 35th Regulation of Insolvency and Bankruptcy Board of India. Insolvency and Resolution Act states that:
- Liquidator shall appoint only registered valuer to evaluate the assets of the company.
- The registered valuer selected shall self-sufficiently submit the approximations of the liquidation value of the asset(s) calculated in harmony with globally recognized valuation values.
- Post physical authentication of the assets of the corporate debtor valuation shall be done.
7 services to settle on Insolvency and Bankruptcy
- Combine and modify all prevailing insolvency laws in India.
- To safeguard the interest of creditors including stakeholders in a corporation.
- To recover the business in a time-bound way & to encourage entrepreneurship.
- To avail necessary assistance to the creditors and to increase the credit supply in the economy.
- To work out a new and timely retrieval process to be approved by the banks, financial institutions or individuals.
- Setting up of Insolvency and Bankruptcy Board of India.
- Expansion of the value of assets of corporate persons.
Insolvency and Bankruptcy Code was introduced in 2018 by the president mainly to assist Micro small-medium enterprises and real estate sector to promote and protect the interest of the customers/ Buyers. National Company law tribunal focused on improving the current situation and providing justice in a way to abridge and accelerate the Insolvency and Bankruptcy Proceedings in India.
NCLT and IBC
National Company Law Tribunal and Insolvency & Bankruptcy code and very much related to each other as all insolvency matters and practices in national company law tribunal. Whereas all real estate and consumer-related case which are against the company are filed in NCLT. Homebuyers are most important in Decision making procedure in NCLT.
MSME and IBC
There are some special provisions introduced for MSME which includes they can bid for their own company till the time they become voluntary defaulters. Introduction of IBC has corrected the irregularity in the section 29A of the prevailing act which had barred sponsors of evading assets from bidding for their assets.
