Under the Insolvency and Bankruptcy Code, 2016 ("IBC"), a creditor can ask the National Company Law Tribunal (NCLT) to start a corporate insolvency resolution process (CIRP) against a company that has defaulted. The NCLT has benches in Chennai for companies registered in Tamil Nadu and Puducherry.
Who can apply
- Financial creditors (lenders, debenture holders) under Section 7;
- Operational creditors (suppliers of goods and services, employees) under Section 9, after serving a demand notice under Section 8;
- the company itself under Section 10.
The minimum default to trigger insolvency is currently ₹1 crore.
The operational creditor route
- Demand notice (Section 8). The company has 10 days to pay or point to a pre-existing dispute.
- Application (Section 9). If it does neither, the creditor can apply to the NCLT.
- Admission. The NCLT rejects the application if there is a genuine pre-existing dispute, as the Supreme Court held in Mobilox Innovations v. Kirusa Software (2017).
- Moratorium and CIRP. On admission, a moratorium stops other proceedings against the company, and a resolution professional takes over. The process should finish within 330 days, including litigation time.
When IBC is, and isn't, the right choice
The threat of insolvency often prompts payment, and many applications are settled and withdrawn. But if the process actually runs, operational creditors rank behind secured lenders and may recover little. We help you weigh the IBC route against commercial suits, arbitration and MSME remedies. See also Court, arbitration or NCLT?
What we handle
- Section 8 demand notices and Section 7 and 9 applications;
- filing and following up claims with the resolution professional in an ongoing CIRP;
- settlement and withdrawal of applications (Section 12A);
- defending companies against unjustified insolvency applications.
Frequently asked questions
What is the minimum amount to file a case in NCLT?
The default must be at least ₹1 crore to initiate insolvency against a company under the IBC.
Can I use NCLT to recover money from a company?
The IBC is meant for resolving insolvency, not as a recovery forum, but the possibility of insolvency often leads companies to settle. If they don't, you should weigh where you would rank among creditors.
What if the company disputes my invoice?
If there is a genuine dispute that existed before the demand notice, the NCLT will reject a Section 9 application. You would then pursue a suit or arbitration instead.
This page is general information about Indian law as of 15 October 2026, not legal advice. Every case turns on its own facts. Please speak to a lawyer before acting on it. See our disclaimer.
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