Insolvency Services in Mumbai
Expert Advisory Under the Insolvency and Bankruptcy Code
Section 7, 9 and 10 applications, CIRP support, claims verification, CoC representation, information memorandum, resolution plan evaluation and liquidation advisory — end-to-end support across the insolvency lifecycle.
Overview
What Are Insolvency Services and Why Do Businesses in India Need Them?
Financial distress does not arrive with a warning. A single delayed payment from a major client, an unexpected regulatory penalty, or a sudden shift in market conditions can push an otherwise stable business towards the edge. When debts pile up and cash flow dries out, the question is no longer about profitability — it is about survival. Insolvency proceedings exist precisely for situations like these, offering a structured legal path for businesses to either recover through resolution or wind down operations in an orderly manner.
N D Savla & Associates is a Mumbai-based Chartered Accountancy firm that has been assisting businesses, creditors, and stakeholders with insolvency advisory since the enactment of the Insolvency and Bankruptcy Code, 2016. Our team works alongside legal counsel, resolution professionals, and financial institutions to provide end-to-end support through every stage of the insolvency lifecycle. Whether you are a promoter facing a CIRP application or a financial creditor looking to recover dues, we bring clarity, compliance, and practical solutions to the table. You can explore our broader range of insolvency and bankruptcy advisory services for a complete understanding of our capabilities.
Our approach is rooted in regulatory precision. Every advisory recommendation we provide is anchored in the specific provisions of the IBC, IBBI regulations, and applicable judicial precedents. We do not offer generic advice. Each engagement begins with a thorough assessment of the financial position, followed by a clear roadmap that accounts for statutory deadlines, stakeholder interests, and practical outcomes.
In India, insolvency services are essential because the IBC fundamentally changed how financial distress is handled. Before the IBC came into force, recovering money from defaulting companies could take years or even decades. Creditors had limited recourse, and the legal framework was fragmented across multiple statutes — the Sick Industrial Companies Act, the Recovery of Debts Due to Banks Act, and various provisions under the Companies Act. The IBC consolidated all of this into a single, time-bound framework with clear procedures, defined roles, and enforceable outcomes.
Today, any financial creditor, operational creditor, or the corporate debtor itself can initiate insolvency proceedings before the National Company Law Tribunal. The process is designed to be completed within 330 days, including extensions. Professional insolvency services ensure that parties meet every statutory requirement, file claims accurately, and protect their rights throughout the process.
Who It Applies To
Who Needs Insolvency Services in India?
Insolvency proceedings touch multiple parties, and each one requires specialised advisory support tailored to their role and interests. The following categories of stakeholders benefit directly from professional insolvency services.
Corporate Debtors Facing Financial Distress
Companies that are unable to pay their debts as they fall due may face insolvency applications from creditors. A corporate debtor needs immediate advisory support to evaluate available options — whether to seek voluntary liquidation, negotiate a settlement outside the IBC framework, or prepare for a CIRP. Early engagement with insolvency professionals can make the difference between a successful resolution and forced liquidation.
Financial Creditors Seeking Recovery
Banks, non-banking financial companies, and other financial creditors who have extended loans or credit facilities to defaulting borrowers rely on insolvency services to file and pursue claims before the NCLT. Professional support ensures that claims are filed within statutory timelines, supporting documentation is complete, and the creditor's interests are represented during the Committee of Creditors meetings.
Operational Creditors Owed Outstanding Dues
Suppliers, vendors, service providers, and employees who are owed money by a company in distress can initiate insolvency proceedings as operational creditors. The process begins with a formal demand notice under Section 8 of the IBC, followed by an application to the NCLT if the debtor fails to pay or dispute the claim within the prescribed period.
Resolution Professionals and Liquidators
Professionals appointed by the NCLT to manage the insolvency process need reliable financial and compliance support. N D Savla & Associates provides assistance to resolution professionals and liquidators in preparing financial statements, verifying claims, managing stakeholder communications, and ensuring compliance with IBBI reporting requirements.
Promoters, Investors, and Resolution Applicants
Promoters seeking to retain control of their business through a resolution plan, and investors looking to acquire distressed assets, both need comprehensive financial and regulatory advisory to structure viable proposals. Insolvency services help resolution applicants assess the true financial position of the corporate debtor, prepare realistic resolution plans, and navigate the approval process through the CoC and NCLT.
How It Evolved
How Has Insolvency Law Evolved in India Over the Decades?
India's approach to handling business failures has undergone a dramatic transformation over the past several decades. Understanding this history provides important context for why the current IBC framework exists and how it operates.
The Pre-Liberalisation Era (Before 1991)
Before economic liberalisation, India had a highly protectionist industrial policy. Sick industrial units were managed under the Sick Industrial Companies (Special Provisions) Act, 1985, commonly known as SICA. The Board for Industrial and Financial Reconstruction was the primary body dealing with distressed companies. The system was slow, heavily bureaucratic, and often resulted in indefinite rehabilitation schemes that protected promoters at the expense of creditors. There was no real concept of creditor-driven insolvency resolution.
Post-Liberalisation Reforms (1991 to 2016)
The 1991 economic reforms opened up the Indian economy, but the insolvency framework lagged behind. Multiple statutes governed debt recovery and winding up — the Recovery of Debts Due to Banks and Financial Institutions Act of 1993, the SARFAESI Act of 2002, and the winding up provisions under the Companies Act. Each had its own jurisdiction, procedures, and timelines. Creditors often had to pursue multiple remedies simultaneously, with recovery rates remaining among the lowest in the world. The World Bank consistently ranked India poorly on the ease of resolving insolvency.
The IBC Era (2016 Onwards)
The Insolvency and Bankruptcy Code was enacted in May 2016 and became fully operational by December 2016. It replaced the fragmented system with a single, unified framework. The Insolvency and Bankruptcy Board of India was established as the regulator. The NCLT became the adjudicating authority for corporate insolvency matters. The code introduced strict timelines — 180 days for the CIRP, extendable by 90 days, with a hard cap of 330 days following the Supreme Court's ruling in the Essar Steel case. This represented a fundamental shift from a debtor-friendly regime to a creditor-driven process. The Ministry of Corporate Affairs continues to oversee legislative updates to the IBC framework.
Recent Amendments and Developments
The IBC has been amended multiple times since its enactment. Notable changes include the introduction of the pre-packaged insolvency resolution process for MSMEs in 2021, the suspension of fresh insolvency filings during the COVID-19 pandemic (Sections 10A), increased thresholds for initiating CIRP (temporarily raised from one lakh to one crore rupees), and amendments to Section 29A restricting certain promoters from submitting resolution plans. The code is a living statute, and staying current with amendments is critical for every stakeholder.
The CIRP
What Is the Step-by-Step Insolvency Resolution Process Under the IBC?
The Corporate Insolvency Resolution Process follows a structured sequence of steps governed by the IBC and IBBI regulations. Each step has specific timelines and compliance requirements that must be followed without exception.
Identification of Default
Filing the Application Before NCLT
IBC — Sections 7, 8, 9 & 10
Admission and Appointment of IRP
IBC — Section 14 moratorium
Constitution of the Committee of Creditors
Preparation of the Information Memorandum
Invitation and Evaluation of Resolution Plans
IBC — Section 29A eligibility
Approval by CoC and NCLT
Implementation or Liquidation
Sector Application
How Do Insolvency Services Apply Across Different Industries?
Insolvency is not a one-size-fits-all process. The challenges, asset structures, and stakeholder dynamics vary significantly across industries. N D Savla & Associates tailors its advisory approach based on the specific characteristics of each sector.
Manufacturing and Industrial Enterprises
Manufacturing companies in insolvency typically have significant fixed assets — plant, machinery, land, and inventory. The valuation and preservation of these assets during the moratorium period is critical. Resolution plans for manufacturing units often involve operational turnaround strategies, and buyers are frequently interested in acquiring the going concern value rather than the liquidation value. Our team assists with accurate asset verification, inventory audits, and financial modelling to support realistic resolution proposals.
Real Estate and Infrastructure
Real estate insolvency cases are among the most complex because of the involvement of homebuyers as financial creditors (following the 2018 amendment to the IBC). Projects with hundreds of allottees, multiple lenders, and regulatory approvals require meticulous claims verification and stakeholder management. The resolution plan must account for project completion timelines, regulatory clearances, and allottee rights. N D Savla & Associates has experience working with resolution professionals handling real estate CIRP matters in Mumbai and across Maharashtra.
Financial Services and NBFCs
The insolvency of financial service providers, including NBFCs, follows a specialised framework under Section 227 of the IBC read with the Financial Service Provider Rules. The Reserve Bank of India plays a key role in the process, and the regulatory requirements are distinct from those applicable to regular corporate debtors. Our team is familiar with the additional compliance layers involved in NBFC insolvency and works alongside RBI-appointed administrators when required.
Trading and Services Companies
Companies in the trading and services sector often have minimal tangible assets but significant receivables, contracts, and brand value. Insolvency advisory for these entities focuses on preserving going concern value, managing ongoing contracts during the moratorium, and structuring resolution plans that capture the intangible asset base. Our firm's merger and restructuring advisory experience is particularly valuable in such matters.
Statutory Reference
What Are the Key Provisions of the IBC That Every Stakeholder Must Know?
The table below summarises the essential provisions that govern the rights and obligations of stakeholders during insolvency proceedings.
| IBC Provision | Subject | Key Requirement |
|---|---|---|
| Section 7 | Application by Financial Creditor | Proof of default through information utility or other records |
| Section 8 & 9 | Application by Operational Creditor | Demand notice followed by NCLT application if no payment or dispute within 10 days |
| Section 10 | Application by Corporate Debtor | Board resolution or special resolution along with books of account |
| Section 12 | CIRP Timeline | Must be completed within 180 days, extendable by 90 days, hard cap of 330 days |
| Section 14 | Moratorium | Prohibits suits, asset transfers, and recovery actions against the corporate debtor |
| Section 29A | Eligibility of Resolution Applicant | Bars wilful defaulters, undischarged insolvents, and certain connected persons |
| Section 33 | Liquidation Order | Passed when no resolution plan is approved within the stipulated time |
| Section 53 | Distribution Waterfall | Priority of payments in liquidation — CIRP costs, workmen dues, secured creditors, unsecured creditors |
Why Our Firm
Why Should You Choose N D Savla & Associates for Insolvency Advisory?
Choosing the right advisory partner during insolvency proceedings is not just about technical expertise — it is about having a team that understands the urgency, the stakes, and the regulatory landscape well enough to act decisively when every day counts.
Deep Understanding of the IBC Framework
Our firm has been working with insolvency matters since the early days of the IBC. We are familiar with the procedural requirements at the NCLT, the documentation standards expected by the IBBI, and the practical challenges that arise during CIRP and liquidation proceedings. Our team has also supported matters involving interim resolution professionals across multiple industry verticals.
Compliance-First Approach
Insolvency proceedings are governed by strict timelines and procedural requirements. A missed deadline or an incomplete filing can derail the entire process. We maintain rigorous compliance tracking systems for every engagement, ensuring that all filings, reports, and disclosures are submitted accurately and on time.
Independent and Objective Advisory
We provide balanced, independent advisory that considers the interests of all stakeholders. Whether we are advising the corporate debtor, the CoC, or a resolution applicant, our recommendations are grounded in the law and the financial realities of the situation — not in any single party's agenda.
Multi-Disciplinary Capabilities
Insolvency matters do not exist in isolation. They intersect with income tax, GST, company law, FEMA, and valuation requirements. As a full-service CA firm, we bring all of these capabilities under one roof. This means clients do not need to coordinate between multiple advisors for tax implications, regulatory filings, or asset valuations during the insolvency process.
Practical, Results-Oriented Guidance
We focus on outcomes. Every piece of advice we provide is oriented towards achieving the best possible result within the constraints of the law and the available timelines. We do not produce voluminous reports that sit unread. We produce clear, actionable recommendations that stakeholders can implement immediately.
Broader Practice
Our Broader Insolvency and Restructuring Services
Insolvency advisory operates inside a wider IBC and restructuring map. Our complete practice covers:
Frequently Asked Questions
Frequently Asked Questions About Insolvency Services in India
What is the minimum default amount required to initiate insolvency proceedings under the IBC?
How long does the Corporate Insolvency Resolution Process take from start to finish?
Can a promoter submit a resolution plan for their own company under the IBC?
What happens to the employees of a company during insolvency proceedings?
What is the difference between insolvency resolution and liquidation under the IBC?
Need expert insolvency advisory?
Talk to our IBC team — CIRP applications, claims and CoC support, resolution plan structuring, and liquidation advisory before the clock runs down.
Book a ConsultationEmail: nainitsavla@savlagroup.in | N D Savla & Associates, Chartered Accountants, Mumbai