The insolvency petition procedure or method involves filing a petition under the Insolvency and Bankruptcy Code (IBC). The petitioner initiates the process by presenting evidence of default. Here, the petitioner is a financial creditor. The National Company Law Tribunal reviews the petition and appoints an insolvency professional. This appointment comes only after the petition is correct and genuine. The professional oversees the resolution process, aiming to maximize creditor recovery. If the resolution fails, liquidation may follow. This procedure provides a legal framework to address financial distress. It ensures a systematic and fair approach to resolving insolvency matters in India. Speak to the expert lawyers at Vidhikarya immediately if you plan to file a petition.
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