insolvency of individual and proprietary concern

The bankruptcy and Bankruptcy Code (IBC) sets the rules for bankruptcy cases involving businesses or people located in the jurisdiction of the Mumbai High Court. The Indian Bankruptcy Code (IBC) sets the rules for insolvency and bankruptcy procedures. It is a comprehensive law that creates a unified structure for dealing with financial distress and reorganizing debt. According to the IBC, Part III of the Code governs insolvency processes for people, such as personal guarantors and sole proprietorships. Cases like these are decided by the National Company Law Tribunal, which meets across the country, including in Mumbai.

Insolvency proceedings may be initiated by an individual or proprietary concern, or their creditors, by submitting an application to the NCLT bench in Mumbai. The resolution process, which may encompass the engagement of an insolvency expert, development of a resolution strategy, and eventual liquidation in the absence of a feasible resolution, is subject to the supervision of the NCLT. It is noteworthy to mention that the NCLT has jurisdiction over both corporate and non-corporate entities, thereby facilitating a streamlined process for resolving insolvency cases involving individuals and proprietary concerns falling within the scope of the IBC. Consequently, in accordance with the stipulations of the Insolvency and Bankruptcy Code, insolvency proceedings in the Mumbai High Court would be registered and adjudicated by the NCLT bench in Mumbai, for the benefit of individuals or proprietary concerns seeking insolvency resolution.