Bankruptcy Insolvency Lawyer in Kota
Expert legal representation in Bankruptcy Insolvency Lawyer in Kota, Rajasthan
💬 Book Your AppointmentAdvocate Prakhar Gupta is an experienced Bankruptcy & Insolvency Lawyer based in Kota, Rajasthan, practicing since 2020 after graduating from NALSAR University of Law, Hyderabad. He represents operational creditors, financial creditors, corporate debtors and personal guarantors before the NCLT Jaipur Bench under the Insolvency and Bankruptcy Code, 2016 — for CIRP initiation, defence and resolution.
Why Choose Advocate Prakhar Gupta as Your Bankruptcy & Insolvency Lawyer
- NALSAR alumnus & 5+ years in practice — focused work in bankruptcy & insolvency lawyer matters across Kota district since 2020.
- Court-side expertise — regularly appears before the District & Sessions Court Kota, Family Court Kota, Consumer Forum, MACT Kota and the Rajasthan High Court Bench at Jaipur and Jodhpur.
- Drafting that holds up — pleadings, applications and notices that anticipate the other side’s response.
- Transparent fees — written engagement letter; no surprise charges.
- Reachable — same-day reply on WhatsApp/email for urgent matters; office in Kota for in-person consultation.
The IBC framework
The Insolvency and Bankruptcy Code, 2016 consolidated India’s insolvency regime into a single time-bound process. Corporate Insolvency Resolution Process (CIRP) initiates under Section 7 (financial creditor), Section 9 (operational creditor), or Section 10 (corporate debtor). The threshold is now ₹1 crore. Once admitted, a moratorium under Section 14 freezes all proceedings against the corporate debtor and an Interim Resolution Professional takes over.
Section 9 operational creditor application
For an operational creditor (unpaid supplier, service provider, employee, government dues), the steps are: (i) statutory demand notice under Section 8 in Form 3/4 giving 10 days; (ii) reply showing pre-existing dispute defeats the application — Mobilox Innovations v. Kirusa Software (2018); (iii) filing under Section 9 before NCLT Jaipur; (iv) admission and appointment of IRP; (v) Committee of Creditors formation if financial creditors exist.
Resolution and liquidation
The IRP, then RP, runs the company as a going concern for 180 days (extendable to 330 days). Resolution plans are invited and put to vote of the CoC under Section 30; 66% voting share is required for approval. If no plan is approved, liquidation under Section 33 begins. Operational creditors typically get the lower of (a) liquidation value of their claim or (b) plan-allocated amount — Essar Steel v. Satish Kumar Gupta (2020).
Personal guarantors and Part III IBC
After Lalit Kumar Jain v. Union of India (2021), personal guarantors of corporate debtors are dragged into the IBC under Sections 94–187. They face moratorium against personal assets and resolution / bankruptcy at the NCLT alongside the corporate. Many promoter-personal-guarantee cases in Kota and Jaipur are now seeing this two-tier proceeding.
Pre-Packaged Insolvency for MSMEs (PPIRP)
For MSMEs, the Pre-Packaged Insolvency Resolution Process introduced in 2021 under Chapter III-A allows promoters to remain in control and propose a base plan before formal admission. It is meant to be faster (120 days), confidential, and less disruptive. Eligibility: defaulter must be MSME with default of at least ₹10 lakh, no PPIRP in the last 3 years, and shareholder approval.
Frequently Asked Questions
My buyer has not paid ₹1.5 crore — should I file under IBC or MSMED?
Both are options. IBC Section 9 is appropriate where the buyer is a corporate debtor and the debt is undisputed. MSMED MSEFC is appropriate where you are a registered MSME — and gives higher interest. We typically use MSMED for genuine MSME suppliers and IBC for larger operational creditors.
What is the threshold to file under IBC after the 2020 amendment?
The minimum default amount is ₹1 crore (raised from ₹1 lakh in March 2020). Below this, NCLT will not admit a CIRP application.
Buyer says there is a pending civil suit on the same invoice — is my Section 9 maintainable?
Mobilox Innovations v. Kirusa Software (2018) 1 SCC 353 held that the existence of a pre-existing dispute is a complete defence to Section 9. The dispute must be a real one with plausible basis, not a fictitious assertion raised after notice.
Personal guarantee — can the lender drag the promoter into NCLT?
Yes. Under Lalit Kumar Jain (2021), personal guarantors face NCLT proceedings under Part III of the IBC. Moratorium against personal assets applies on admission. The promoter’s home, FDs and personal investments can come under the resolution net.
Will an IBC reference recover my full amount?
Rarely. Average recoveries for operational creditors in CIRP are 15–30% of admitted claims. IBC is a recovery-acceleration tool but not a guarantee of full payment. Strategic use combined with parallel civil/criminal pressure often yields better outcomes.
Speak to Advocate Prakhar Gupta
Office in Kota — consultations by appointment. Call, WhatsApp or email to discuss your matter. Urgent bail / interim matters handled on priority.
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