NCLT & Stressed Assets: Corporate Resolution and Revival
In today’s volatile business environment, financial distress can strike any company regardless of size or industry. When a company defaults on its obligations and becomes financially unstable, timely intervention is crucial. This is where the National Company Law Tribunal (NCLT) plays a critical role in handling stressed assets through structured legal proceedings and resolution strategies.
At G Dinesh and Associates, we help corporates, creditors, and investors navigate the complex NCLT framework, offering end-to-end solutions for resolution, restructuring, and revival of stressed assets.
What are Stressed Assets?
Stressed assets refer to loans or advances that are underperforming or have defaulted. These are primarily categorized into:
Non-Performing Assets (NPAs)
Restructured Loans
Written-off Assets
Stressed assets are a key concern for financial institutions and corporate stakeholders because they impact profitability, capital adequacy, and credit flow in the economy.
Understanding NCLT: The Legal Forum for Corporate Insolvency
The National Company Law Tribunal (NCLT) is a quasi-judicial body constituted under the Companies Act, 2013, and empowered by the Insolvency and Bankruptcy Code (IBC), 2016. It is the primary adjudicating authority for:
Corporate Insolvency Resolution Process (CIRP)
Liquidation of companies
Approval of mergers and demergers
Revival and rehabilitation of sick companies
How NCLT Handles Stressed Assets
When a company is unable to repay its debts, creditors can approach the NCLT to initiate the Corporate Insolvency Resolution Process (CIRP). This legal mechanism ensures a time-bound resolution for distressed companies. The process includes:
1. Filing of Insolvency Petition
By a financial creditor, operational creditor, or the corporate debtor itself.
2. Appointment of Insolvency Professional
A Resolution Professional (RP) is appointed to take control of the debtor’s assets and operations.
3. Moratorium Period
A 180-day period (extendable to 330 days) during which no legal action can be taken against the debtor.
4. Committee of Creditors (CoC)
CoC is formed to vote on critical decisions including the approval of a Resolution Plan.
5. Resolution or Liquidation
If a viable plan is approved, the company is revived; otherwise, liquidation proceedings are initiated.
Key Benefits of NCLT for Handling Stressed Assets
Structured and Time-Bound Resolution
Transparency and Legal Protection
Maximization of Asset Value
Opportunity for Business Revival
Investor Participation in Distressed Assets
Who Can Approach NCLT?
Financial Creditors: Banks, NBFCs, bondholders
Operational Creditors: Vendors, suppliers, employees
Corporate Debtors: Companies seeking voluntary insolvency
Investors: Looking to acquire or invest in stressed assets via resolution process
Our Services for NCLT & Stressed Asset Management
At G Dinesh and Associates, we offer comprehensive professional services in dealing with stressed assets under NCLT:
Legal and Financial Advisory for CIRP Filing
Drafting and Filing of Insolvency Petitions
Representation Before NCLT/NCLAT
Support in Due Diligence and Valuation of Stressed Assets
Assistance in Resolution Plan Preparation and Negotiation
Transaction Advisory for Investors in Distressed Assets
Our team of Chartered Accountants, Insolvency Professionals, and Legal Advisors work collaboratively to provide strategic solutions that protect stakeholder interests while maximizing recovery and business continuity.
Why Choose G Dinesh and Associates?
✅ In-depth understanding of IBC, NCLT proceedings, and financial restructuring
✅ Robust track record in insolvency resolution and distressed asset advisory
✅ End-to-end representation and compliance support
✅ Strategic guidance for both creditors and investors
✅ Ethical, time-efficient, and client-centric approach
Need Help With NCLT or Stressed Assets?
Whether you’re a business struggling with mounting debt, a creditor seeking recovery, or an investor exploring distressed asset opportunities, G Dinesh and Associates is your trusted partner in navigating the complexities of NCLT. Let us help you find the most effective resolution strategy with compliance, confidence, and clarity.
Contact us today to schedule a consultation and take the first step toward resolution and revival.
