NCLT & Stressed Asset Resolution
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 companies under financial distress.
NCLT · CORPORATE INSOLVENCY RESOLUTION
When a loan stops behaving like one
Stressed assets are loans and advances considered risky because the borrower is struggling to repay in full. They signal a decline in credit quality that eventually threatens the financial stability of lenders - particularly banks and finance companies.
| Category | Description | Implication |
|---|---|---|
| Non‑Performing Assets (NPA) | Loans where repayment (interest or principal) is overdue for more than 90 days. | Indicates borrower default; affects the bank's income and balance sheet. |
| Restructured Loans | Loans with revised terms - extended tenure, reduced interest - due to the borrower's financial stress. | Considered risky; often a sign that the borrower may default. |
| Written‑Off Assets | Loans removed from the lender's books as unrecoverable, though legal recovery rights remain. | Reflects financial loss for the lender; used for balance sheet cleanup. |
The legal forum for corporate insolvency
The National Company Law Tribunal (NCLT) is a quasi‑judicial authority established under the Companies Act, 2013, and empowered by the Insolvency and Bankruptcy Code (IBC), 2016. It is the primary forum in India for resolving financial distress among corporates - handling cases involving non‑performing assets, loan defaults, and operational failures through a time‑bound resolution process, the Corporate Insolvency Resolution Process (CIRP), or liquidation where no resolution is feasible.
From default to resolution
Petition Filed
When a company falls behind on its loans or is classified as an NPA, either the creditors or the company itself can file a petition with the NCLT to begin the CIRP.
Resolution Professional Appointed
The NCLT appoints a Resolution Professional (RP) to take charge of the company and oversee the resolution process.
Resolution Plans Assessed
The RP assesses resolution plans put forward by creditors and investors, and presents the most viable option to the NCLT.
Outcome: Revival or Liquidation
If a plan is approved, the NCLT sanctions it to help revive the company. If no feasible plan exists, the NCLT orders liquidation.
NCLT & stressed asset management
What sets our representation apart
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.