The National Company Law Tribunal is the forum for corporate insolvency under the Insolvency and Bankruptcy Code, 2016 and for company disputes under the Companies Act, 2013. The chamber of Advocate Manish Jha appears before the New Delhi benches of the NCLT and in appeals before the NCLAT.
Corporate Insolvency under the IBC, 2016
The Code allows creditors to initiate the corporate insolvency resolution process (CIRP) against a defaulting company where the default meets the threshold of ₹1 crore.
- Section 7 — a financial creditor (a lender, debenture holder or, in defined cases, homebuyers acting through the prescribed numbers) may file on proof of debt and default.
- Section 9 — an operational creditor (a supplier of goods or services, including employees) must first serve a demand notice under Section 8; the corporate debtor has 10 days to pay or to raise a pre-existing dispute. Only if neither happens can the Section 9 petition proceed.
- Section 95 — creditors may initiate insolvency proceedings against personal guarantors to corporate debtors, a route increasingly used against promoters who guaranteed company loans.
The chamber acts for petitioning creditors and equally for corporate debtors, promoters and guarantors resisting admission — where the existence of a genuine pre-existing dispute or a defect in the demand notice can be a complete answer to an operational-creditor petition.
Oppression and Mismanagement — Sections 241–242, Companies Act, 2013
Shareholder disputes in closely held companies — exclusion from management, dilution of shareholding, diversion of business — many with a family-business background — are addressed through petitions under Sections 241 and 242 of the Companies Act, 2013. The Tribunal's powers are wide: it may regulate the company's affairs, order buy-outs of shares, or set aside transactions found oppressive.
Appeals to the NCLAT
Orders of the NCLT are appealable to the National Company Law Appellate Tribunal at New Delhi within strict limitation periods that differ between the IBC and the Companies Act, with only limited scope for condonation. Timely evaluation of an adverse order is therefore essential.
Related pages: business and corporate law, Section 8 demand notices and banking disputes.
Frequently Asked Questions
What is the minimum default for an IBC petition?
Since 2020, the minimum amount of default for initiating the corporate insolvency resolution process against a corporate debtor is one crore rupees. Petitions below that threshold are not maintainable, and creditors with smaller claims must pursue ordinary civil, commercial or contractual remedies instead of the IBC route.
What is a Section 8 demand notice?
It is the mandatory notice an operational creditor must serve on the corporate debtor before filing a Section 9 petition. The debtor has ten days to pay the unpaid operational debt or to point out a pre-existing dispute. A genuine dispute raised in response ordinarily bars admission of the insolvency petition.
Can action be taken against a personal guarantor?
Yes. Under Section 95 of the IBC, creditors may initiate insolvency proceedings against personal guarantors to corporate debtors — typically promoters or directors who gave personal guarantees for company borrowings. These proceedings run before the NCLT and can continue alongside the company's own insolvency process.
Where are NCLT matters for Delhi companies heard?
Companies with their registered office in Delhi fall within the territorial jurisdiction of the New Delhi benches of the NCLT. Appeals from NCLT orders lie to the National Company Law Appellate Tribunal, which also sits at New Delhi, within the limitation periods prescribed by the IBC and the Companies Act, 2013.