How to File an Insolvency Petition in NCLT Delhi? Complete IBC Filing Guide by Advocate Manoj Sharma

 


How to File an Insolvency Petition in NCLT Delhi? A Complete Step-by-Step Guide by Advocate Manoj Sharma

When a company fails to repay its financial or operational debt, the Insolvency and Bankruptcy Code, 2016 (IBC) provides a legal mechanism through which eligible creditors or the corporate debtor can initiate insolvency proceedings before the National Company Law Tribunal (NCLT).

However, filing an insolvency petition is not simply about proving that money is outstanding. The applicant needs to establish the debt, default, applicable IBC provision, jurisdiction and statutory requirements.

Advocate Manoj Sharma, an experienced legal professional dealing with NCLT, IBC, insolvency and corporate legal matters, helps clients understand the appropriate legal route and documentation required for insolvency proceedings in Delhi.

What Is an Insolvency Petition Before NCLT?

An insolvency petition is an application seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against an eligible corporate debtor after the statutory requirements under the IBC are satisfied.

The three major routes are:

Section 7 – Financial Creditor

A financial creditor can initiate CIRP when there is a qualifying financial debt and default.

Section 9 – Operational Creditor

An operational creditor can initiate CIRP after complying with the Section 8 demand notice procedure and other statutory requirements.

Section 10 – Corporate Applicant

A corporate debtor can itself seek initiation of CIRP under Section 10, subject to the requirements of the IBC.

Advocate Manoj Sharma can help creditors and corporate applicants understand which provision may apply to their circumstances.

Who Can File an IBC Petition in NCLT Delhi?

An insolvency application may be initiated by:

  • Financial Creditors
  • Operational Creditors
  • Corporate Applicants

The nature of the debt determines which statutory route may be available.

Before filing, it is important to establish whether the claim qualifies as financial debt or operational debt under the IBC.

Step-by-Step Process to File an Insolvency Petition in NCLT Delhi

Step 1: Determine the Correct NCLT Jurisdiction

The first step is identifying the appropriate NCLT Bench.

For companies falling within the territorial jurisdiction of Delhi, the relevant NCLT New Delhi/Principal Bench may have jurisdiction, subject to the applicable rules.

The company's registered office and territorial jurisdiction should be carefully verified before filing.

Step 2: Identify the Correct IBC Section

This is one of the most important steps.

Financial Creditor → Section 7

Operational Creditor → Section 9

Corporate Applicant → Section 10

Using the wrong statutory route can result in avoidable procedural complications.

Step 3: Verify the Debt and Default

The applicant should collect evidence establishing:

  • Amount of debt
  • Date when payment became due
  • Date of default
  • Outstanding amount
  • Payment history
  • Relevant agreements
  • Supporting financial records

The current statutory threshold for initiating CIRP under Section 4 is ₹1 crore, subject to applicable law and notifications.

Step 4: Prepare the Necessary Documents

For Section 7 IBC

Documents may include:

  • Loan agreement
  • Sanction letter
  • Bank statements
  • Financial records
  • Security documents
  • Evidence of default
  • Record of default, where applicable
  • Details/consent of proposed IRP
  • Corporate debtor details

For Section 9 IBC

The operational creditor may need:

  • Invoices
  • Agreements/work orders
  • Ledger statements
  • Section 8 demand notice
  • Proof of delivery
  • Reply from the corporate debtor
  • Evidence concerning any alleged dispute
  • Payment records

For Section 10 IBC

The corporate applicant may need:

  • Financial statements
  • Books of accounts
  • Asset and liability details
  • Corporate records
  • Proposed IRP details
  • Required shareholder/partner approval
  • Other prescribed documents

Step 5: Section 8 Demand Notice for Operational Creditors

If you are an Operational Creditor, Section 8 is particularly important.

Before filing under Section 9, the operational creditor generally needs to serve the prescribed demand notice.

The corporate debtor gets the statutory opportunity to make payment or raise a qualifying dispute.

A genuine pre-existing dispute can become an important issue in Section 9 proceedings.

Step 6: Draft the NCLT Application

The application must be prepared in the applicable prescribed form along with supporting documents and affidavits.

The petition should clearly establish:

Debt → Default → Applicable IBC Provision → Jurisdiction → Supporting Evidence

This is where proper legal drafting becomes extremely important.

Advocate Manoj Sharma can assist with reviewing the documents, identifying the appropriate IBC provision and preparing the legal grounds for the NCLT proceedings.

Step 7: NCLT E-Filing

The NCLT provides an electronic filing mechanism for applications.

The applicant/authorised professional needs to:

  1. Register on the NCLT e-filing portal.
  2. Select the appropriate case/application category.
  3. Upload the petition and supporting documents.
  4. Complete required declarations and affidavits.
  5. Pay the applicable filing fee.
  6. Submit the application.

Documents generally need to comply with the prescribed electronic filing requirements.

Step 8: Registry Scrutiny

After filing, the NCLT Registry examines the application.

If defects are identified, the applicant may need to cure those defects within the applicable time.

Common issues can include:

  • Missing documents
  • Incorrect formatting
  • Incorrect corporate details
  • Missing signatures
  • Defective affidavits
  • Incorrect fee/payment
  • Missing authorisation
  • Improper annexures

Proper preparation before filing can help minimise avoidable defects.

Step 9: NCLT Hearing

Once the matter is properly filed and listed, it comes before the appropriate NCLT Bench.

The Tribunal examines whether the statutory requirements for admission have been fulfilled.

Depending on the case, the corporate debtor and other relevant parties may be heard.

Step 10: Admission of the Insolvency Petition

If the NCLT is satisfied that the statutory requirements are fulfilled, it may admit the application.

Following admission, the CIRP process begins and statutory consequences under the IBC follow, including the applicable moratorium, appointment of the Interim Resolution Professional and public announcement.

What Happens After NCLT Admits the Petition?

After admission:

Moratorium

The statutory moratorium under Section 14 comes into operation, subject to the Code.

IRP Appointment

An Interim Resolution Professional takes charge of the functions prescribed under the IBC.

Public Announcement

Creditors are invited to submit their claims.

Committee of Creditors

The Committee of Creditors is constituted in accordance with the Code.

Resolution Process

The corporate debtor proceeds through the CIRP framework with the objective of resolution.

Common Mistakes While Filing an IBC Petition

❌ Filing before the wrong NCLT Bench
❌ Choosing the wrong IBC provision
❌ Incorrect calculation of default
❌ Ignoring limitation issues
❌ Missing supporting documents
❌ Not following Section 8 procedure in Section 9 matters
❌ Ignoring a pre-existing dispute
❌ Incorrect corporate information
❌ Filing incomplete affidavits or annexures
❌ Relying on outdated filing requirements

Why Consult Advocate Manoj Sharma for NCLT & IBC Matters?

NCLT insolvency proceedings can have significant consequences for companies, creditors, directors, shareholders and other stakeholders.

Before filing, Advocate Manoj Sharma can assist with:

✔ NCLT Insolvency Petitions
✔ Section 7 IBC Applications
✔ Section 9 IBC Applications
✔ Section 10 IBC Proceedings
✔ CIRP Matters
✔ IBC Legal Notices
✔ Corporate Insolvency Disputes
✔ Creditor & Corporate Debtor Matters
✔ NCLT Corporate Litigation
✔ Related Appellate Remedies

NCLT Insolvency Lawyer in Delhi – Advocate Manoj Sharma

If you are searching for an NCLT Lawyer in Delhi, IBC Lawyer in Delhi, or legal assistance for an Insolvency Petition before NCLT, getting the documents and statutory route reviewed before filing can be extremely important.

Advocate Manoj Sharma provides legal guidance in NCLT, IBC, insolvency and corporate matters.

📞 +91 97173 02802
📍 Delhi & Lucknow / Uttar Pradesh Matters

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