Banking, Finance and Insolvency Laws

India’s NPA ratio is higher than any other major emerging market and the Insolvency resolution in India used to take 4-5 years on average. The resolution mechanisms such as strategic debt restructuring (SDR) and sustainable structuring of stressed assets (S4A) made little difference, but with the introduction of the Insolvency & Bankruptcy Code 2016, and its various amendments since then, a time-bound process to resolve insolvency has been carried out.

Whenever any kind of default in repayment is made the creditors are bound to take control over the assets of the debtor. The insolvency resolution is proceeded with the help of various institution like Insolvency Professional, Insolvency Professional Agencies, Adjudicating Authorities- NCLT and NCLAT, Insolvency & Bankruptcy Board. A resolution process may be initiated against any person or organization who has been unable to meet its outstanding financial debt.


This has also helped the banking sector of the country as previously they were accused of selling the assets too cheap and were put in the ambit of complicity and corruption, now IBC has ensured that buyers acquire cleaned-up assets without any fear.  


How can we help?


Avid Legal is a trusted adviser to several financial institutes and banks (Public and Private). We understand each client’s unique needs and provide tailored solutions. Avid Legal has vast industry and regulatory experience in sectors such as infrastructure, power projects, competition, antitrust, real estate etc. Therefore, the Firm is able to effectively assist in preparation/ vetting of documentation relating to the facility agreements, loan agreements, securities, mortgages, liens, consumer loans, and guarantees. 

Our team also advises clients on corporate bankruptcy, recapitalization, debt restructuring, parallel policy and other compliances related issues. We conduct title searches, vetting of documents for loan and drafting of various agreements for banking and non-banking financial institutions. We also regularly represent our clients before the NCLT, NCLAT, DRT, DRAT, High Courts, Supreme Court of India and various domestic arbitration tribunals.


Further, AVID LEGAL is helping Banks, Corporates and Financial Institutions in the recovery of dues in all possible /conceivable manner. The predominant mode of recovery involves the filing of a complaint under Section 138 of Negotiable Instrument Act,1881, filing of civil recovery suits, proceedings under Arbitration and Conciliation Act, 1996, approaching DRT/ its Appellant Tribunal for recovery of debts due to Banks and Financial Institutions and availing protection under SARFAESI.